CHARLES: SO FORD REPORTED THEIR
NUMBERS AND $2 BILLION PROFIT
NORTH, FROM NORTH AMERICAN
CUSTOMERS IN THE LAST QUARTER
BUT THEY LOST MONEY IN EVERY
OTHER REGION OF THE WORLD.
THE QUESTION IS WHY DO THESE
AUTO COMPANIES CONTINUE TO SHIP
JOBS OUTSIDE OF THIS COUNTRY?
WITH MEED TOMORROW PAGE WRITER
JILLIAN MELCHIOR AND KINGSVIEW
ASSET MANAGEMENT, SCOTT MARTIN.
JILLIAN, LET ME START WITH YOU.
THE NUMBERS ARING A STAGGERING.
THEY LOST 200 UNTIL IN
SOUTH AMERICA, 200 MILLION IN
EUROPE AND ALMOST 400 MILLION IN
ASIA.
I UNDERSTAND COMPARATIVE
ADVANTAGE AND ALL THOSE THINGS
BUT AT SOME POINT DOES BEHOOVE
FORD TO PUT MORE MANUFACTURING
AND NEAR THEIR STRONGEST
ECONOMIC BASE?
>> I UNDERSTAND THEY'RE MAKING
IT BECAUSE OF ECONOMICS, NOT
COUNTRY LOYALTY.
IF YOU'RE READING THROUGH
EARNINGS CALLS, THEY SAY THE
TARIFFS HAVE REAL IMPACT.
OTHER MACHINE MANUFACTURERS IN
THAT SECTOR, FOR EXAMPLE, HARLEY
MOVING TO EUROPE TRYING TO GET
AROUND SOME PENALTIES.
UNITED STATES MANUFACTURERS ARE
NOT ONLY HIT WITH THE STEEL AND
ALUMINUM TARIFFS, PARTICULARLY
IN CHINA, 25% RETALIATORY
TARIFFS, THROUGH SIGNIFICANT
PORTION OF THAT LAST YEAR.
I THINK A LOT OF IT IS
UNFORTUNATELY UNINTENDED
CONSEQUENCES OF THE TRADE WAR
PUSHING THEM ABROAD, DOING
EXACTLY WHAT WE HOPED TO
ACCOMPLISH.
CHARLES: I WISH IT WAS THAT
SIMPLE.
THIS IS THE LONG-TERM STUFF,
TODD, SCOTT, I'M SORRY THAT HAS
BEEN HAPPENING FOR A LONG TIME.
I'M WONDERING DID THEY MAKE
THESE BETS.
FOR INSTANCE, CHINA, THE AUTO
MARKET THIS YEAR.
FIRST DOWN YEAR SINCE 1990.
THE WHOLE IDEA THEY'RE MAKING
BETS ON THESE UP OTHER COUNTRIES
THEY'RE TAKING AMERICANS FOR
GRANTED AS POTENTIAL CUSTOMERS,
SOMETHING THAT YOU KNOW THAT
COULD COME BACK TO HAUNT THEM.
>> YES.
AND BY THE WAY, CHARLES, YOU CAN
CALL ME WHATEVER NAME YOU WANT,
MY FRIEND.
CHARLES: WITH THAT JACKET I HAVE
TO CALL YOU SUPERSTAR, MY MAN.
YOU'RE LOOKING GOOD.
>> I WILL TAKE THAT ALL DAY
LONG, YOU KNOW THAT.
JILLIAN IS RIGHT ABOUT THE
WORKER COMMENT.
THE OTHER THING TO NOTE, AS
JILLIAN IS HINTING AT, IT IS
ECONOMICS.
LOOK BACK AT COUPLE YEARS UNDER
A DIFFERENT ADMINISTRATION, MIND
YOU, EUROPE AMAZINGLY,
SOUTH AMERICA, ASIA, WERE BETTER
FOR FORD.
WE WERE SEEING RECORD PROFITS OR
NEAR RECORD PROFITS IN THOSE
AREAS.
SO IT PROBABLY MADE SENSE AT THE
TIME, MARK FIELDS CEO WAS MOVING
OPERATIONS THERE BECAUSE THAT IS
WHERE THEY PROBABLY THOUGHT THE
GROWTH WAS, CHARLES, BUT NOW TO
YOUR POINT, GLOBAL GROWTH IS
SLOWING.
THE AMERICAN WORKER IS BACK.
WE HAVE AN ADMINISTRATION THAT
IS FRIENDLIER TOWARDS BUSINESS.
MAYBE THAT IS WHY THEY'RE KIND
OF LATE TO THE GAME ON DOING
THIS.
I THINK EXPANDING THE AMERICAN
OPERATIONS, HERE IS THE WAY TO
GO, GIVEN WHAT WE SAW IN THE
LATEST REVENUE REPORTS.
CHARLES: WE JUST HAD MERCEDES
OPEN UP A NEW VAN FACTORY IN
SOUTH CAROLINA.
THEY EXPANDED IT.
THEY HAVE 1300 WORKERS THERE.
AND BY THE WAY, THEY USED TO
ASSEMBLE THE VANS HERE, SPRINTER
VANS.
NOW THEY MANUFACTURE THEM.
IT IS KIND OF ODD WHEN I SEE
MERCEDES, THESE OTHER COMPANIES
SAY WE'LL CONTINUE TO BRING
AUTOMOBILE MANUFACTURING TO
AMERICA BUT THE HOMEGROWN NAMES
WE'RE SUPPORTING KEEP FINDING
WAYS NOT TO.
THE TARIFFS ARE TEMPORARY BUT
WHAT WOULD OFFSET THAT IS THE
TAX CUTS.
THESE TAX CUTS WOULD BE ENORMOUS
BENEFIT FOR GENERAL MOTORS AND
FORD AND OTHERS.
THOSE WILL STAY FOR A WHILE.
THE TARIFFS, THE BARRIERS,
TARIFFS ARE PROBABLY GOES AWAY.
AND THEN FORD WILL BE SADDLED
WITH SOME SERIOUS DECISIONS TO
MAKE.
BY THE WAY THEY'RE LOSING MARKET
SHARE.
THAT IS SOMETHING THEY SHOULD BE
CAREFUL WITH.
I DON'T THINK FIELDS IS GREAT
CEO.
HE IS TELL AGAIN I CAN, PEOPLE
LIKE TO INTERVIEW BUT THEY LOST
A LOT OF MARKET SHARE UNDER HIM.
THAT HAS TO BE A RED FLAG.
>> I THINK AT SOME POINT SOME
TARIFFS ARE DRIVING BUSINESSES
OUT OF THE UNITED STATES.
IF YOU LOOK WHAT WAS HAPPENING
IN CHINA, THEY HAD WHAT SIX
YEARS OF JUST COMPLETE BOOMING
GROWTH IN THE AUTO MARKET.
THEN RETALIATORY TARIFFS TAKE
PLACE.
I THINK A LOT OF COMPANIES ARE
LOOKING AT THIS.
THERE THEY ARE NOT SURE WHAT THE
TARIFFS ON STEEL, ALUMINUM,
INPUT FOR AMERICAN CARS.
A LOT ARE MAKING A SMART
ECONOMIC DECISION.
CHARLES: WE'LL CHECK ON LATER ON
BUT BY THE WAY, PROFITWISE, THE
PROFIT MARGINS IN AMERICA ARE SO
MUCH BETTER THAN ANY ARE ELSE IN
THE WORLD.
THAT IS ANOTHER THING.
THEY ARE MAKING, I MEAN, HOW CAN
YOU MAKE $2 BILLION IN AMERICA
AND LOSE $400 MILLION IN ASIA,
200 MILLION IN EUROPE,
200 MILLION IN SOUTH AMERICA,
SAY YOU KNOW WHAT?
IT IS TOO EXPENSIVE TO DO
BUSINESS WHERE PEOPLE ARE
KEEPING OUR COMPANY AFLOAT?
WE'LL KEEP THIS DEBOAT GOING