Trade barriers.
The Hyundai Ioniq 6 trim for the person with a budget vanished from the market in the USA because taxes on the ship from South Korea erased the profit for the company. The base model is gone. Customs agents collect the fees at the port and the automaker passes those costs to the consumer.
I wanted to tell about the morning I spent on a lot in Savannah where the salesperson explained why the sedan with the price at the bottom of the list did not exist in his showroom. Buyers demand the SE Standard Range. They find the SE Long Range instead. Ships carry the metal across the ocean. Trade policy dictates the sticker price.
Watch the supply chain. Global trade fights force companies to abandon the budget buyer to protect the bottom line and management shifts the focus to luxury buyers. Look, it works every time, well not really, when the cost of moving freight exceeds the retail price of the machine. The factory remains overseas. The tax man takes a cut. Profits matter.
Construction starts on the Georgia plant soon. Domestic assembly avoids the tariff. People wait for the change.
New Supplemental Material
Don't miss this out
- Compare the efficiency of the battery cells in the Long Range model to determine the cost of the extra distance.
- Contact local dealerships to inquire about the arrival date of vehicles produced at the new domestic facility.
- Review federal tax credit eligibility for leased vehicles as a method to offset the increased retail price.
- Search for used inventory from previous years before the supply of the original SE Standard Range depletes.
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