Some replacement parts to increase in price Options

[EdwardBlume]

As a student of economics (I don't do it for a living), I support a free market. A free market requires that everyone plays fair. China is not a free market. Whatever it actually is, you support it every time something you buy anything that has a "made in China" tag....much like supporting dead factory food by buying it and eating it. Demand will always fuel the supply. The problem is, we have quite a wage gap, that is expanding vs contracting. You either adjust the material side or overhead side, and I don't think my state is advocating a lower wage at this time, hence the shift to automation.

[mbseto]

Well I was ready to be outraged, but I didn't get an email...

[cary]

I just rolled thru the catalog. We're pretty lucky a lot our parts are made by RD.
But if you foresee a major restoration in the next couple years you should take note. Major items not RD. Some of these listed below might be from AA. But I'm fairly certain the first 3 are Dansk.

Battery Tray
Battery Support
Suspension Console
Both longs
Seat pivots
Lower firewalls
Both fresh air intakes
Inner long engine compartment
Front tow hook

[Mueller]

Reading between the lines, they purchase material that will have the 25% tariff?

I do not see on their website where they source their raw stock sheet metal so if buying Chinese steel they will be paying more for it. correct?

[EdwardBlume]

Reading between the lines, they purchase material that will have the 25% tariff?

I do not see on their website where they source their raw stock sheet metal so if buying Chinese steel they will be paying more for it. correct?

No. Not unless Canada decides to put their own tariff on Chinese steel.

[EdwardBlume]

Reading between the lines, they purchase material that will have the 25% tariff?

I do not see on their website where they source their raw stock sheet metal so if buying Chinese steel they will be paying more for it. correct?

No. Not unless Canada decides to put their own tariff on Chinese steel.

Restoration Design
24 Hayes Ave.
Guelph, Ontario N1E 5V5
Canada

[bdstone914]

Some of the RD parts carried by them are Dansk. You can tell most of them from the images where the parts are black not bare metal. Still not sure if that really impacts the finished Dansk part.

[dr914@autoatlanta.com]

Restoration Design parts and prices are top quality and very reasonable, an increase in price will not stop us from purchasing them.

We make all of our sheetmetal parts in Michigan, and due to the theft of our tooling from the old restoration design guy bill frye, before Mike bought him out, there is some overlap with the parts made by Mikes new company, which of course in this small market is not good.

Mike has always been very fair, has had prompt delivery and strives to continue to expand his 914 offering. He deserves a bit of a price increase tariff or no tariff!

[Andyrew]

All of the manufacturers in our industry are calling for a 5%+ increase in prices, and manufacturers with nothing but steel materials are calling from between 25 and 40% increase in cost.


I think they are just CYA until the actual numbers come in, in which case they will lower them back down to workable numbers.


Its a big hit for our company as we work on about a 5-10% profit margin and thus our profits for existing contracts will be nulled by these cost increases.

[peteyd]

I think that RD's attempt at sneaking in a hefty price increase &/or as a retaliatory political statement will only hurt them in the long run, because they're punishing where they sell the bulk of their 356, 911/912, 914, etc. resto steel products.

I call BS on this one!

(IMG:style_emoticons/default/beerchug.gif)
Tom
///////

Tom,

We have done our research, there will be tariffs on finished parts manufactured outside of North America. We offer parts to our customers that are manufactured in Europe, Taiwan, and other places outside of North America.

Parts that are produced by us, and north American suppliers will not be affected.

Before you start pointing fingers and calling BS, I think you should get your facts straight. Dont be accusing RD of things that you dont even know.

We have been supplying the Porsche community with panels for nearly 10 years now. It is our goal to have superior customer service and this email was sent out to inform people of what the situation is concerning steel and aluminum products crossing the border.

All our steel coils has been purchased from a supplier in Michigan for the entire time we have been in business. Any other steel is sourced locally and made in North America.

We have several brokers that handle our shipments crossing the border. They have taken the time to read the bill carefully. They have determined that the 25% will be affecting finished product manufactured outside of North America

This was not a scare tactic, and honestly I am disappointing that people would think this.

Pete

[malcolm2]

https://us5.campaign-archive.com/?u=410d561...mp;e=3b7a05b8e8

Thanks for keeping us informed.

Business is business. Prices go up, prices go down. As has been said, in a truly free market, the customer decides the price.

Let's hope the "tariff" decision is a negotiating tactic, so everyone will be ok.

[Mueller]

Reading between the lines, they purchase material that will have the 25% tariff?

I do not see on their website where they source their raw stock sheet metal so if buying Chinese steel they will be paying more for it. correct?

No. Not unless Canada decides to put their own tariff on Chinese steel.

That makes sense, unless their supplier is in the US and they purchase from China?

[gothspeed]

(IMG:style_emoticons/default/agree.gif) with almost all of Tom T's post.

(IMG:style_emoticons/default/agree.gif) 100%

As was mentioned the cost of raw material is only a portion of the total cost of the finished product. A 25% tariff on raw stock if passed through 100% would increase the final price less than 25%.

Reminds me of some idiots on radio that because steel and aluminum from some countries was going to be tariffed at 25%. That meant the final cost of cars was going up directly by 25%. Pure BS and 'chicken little' political propaganda.

That said, if anyone wants to raise their prices they can do so. But using this tariff as an excuse for a direct 25% increase is less than honest. Just raise the price, no need for a fake excuse.

[Mblizzard]

Sometimes I have trouble with the big words and have to sound them out because I went to a State university.

But when I read the email it seem clear that it never implied "all" parts were going up 25%. But as many have stated not all of the parts carried by RD are produced in north America.

Now as with all things written, there are better ways to phrase it that you just don't see until the second after you hit send.

Of course avoiding politics, but the reality is that the real impacts of what will happen is not completely know at this point. In the end it will be much more complex that a 25% change in price.

[rhodyguy]

Structural steel has nothing to do concerning stamped automotive items manufactured from rolled steel imported from the States. RD is a bit, no offense, player in this senerio. Their market is small but they enjoy a relatively captive consumer base. Welcome to 2018. Things are what they are. Options? Few.

[MarkV]

Sometimes I have trouble with the big words and have to sound them out because I went to a State university.

But when I read the email it seem clear that it never implied "all" parts were going up 25%. But as many have stated not all of the parts carried by RD are produced in north America.

Now as with all things written, there are better ways to phrase it that you just don't see until the second after you hit send.

Of course avoiding politics, but the reality is that the real impacts of what will happen is not completely know at this point. In the end it will be much more complex that a 25% change in price.

(IMG:style_emoticons/default/agree.gif)

Email should have started by stating that the parts manufactured in house are made with North American steel and are not affected. Go on to state that some parts aren't made in house and may be affected by the tariff. The way it came across to me seems misleading and easily misunderstood. (IMG:style_emoticons/default/confused24.gif)

[914_teener]

(IMG:style_emoticons/default/agree.gif) with almost all of Tom T's post.

(IMG:style_emoticons/default/agree.gif) 100%

As was mentioned the cost of raw material is only a portion of the total cost of the finished product. A 25% tariff on raw stock if passed through 100% would increase the final price less than 25%.

Reminds me of some idiots on radio that because steel and aluminum from some countries was going to be tariffed at 25%. That meant the final cost of cars was going up directly by 25%. Pure BS and 'chicken little' political propaganda.

That said, if anyone wants to raise their prices they can do so. But using this tariff as an excuse for a direct 25% increase is less than honest. Just raise the price, no need for a fake excuse.

Must have been the same idiots that think there is a trade deficit with Canada.

[peteyd]

I don't have time to sit here and debate with anyone that thinks they know what they are talking about in reference to these lovely tariffs that the US government are imposing.

Here are some answers to the questions we had. Also please read through the proclamations.

Can RDI ship finished products manufactured from Canada & Mexico Duty free as in the past? - yes

Is Aluminum from outside North America 10% Duty ?– yes, if it is classified as the tariff numbers below.
Is Steel from outside North America 25% Duty - yes, if it is classified as the tariff numbers below.

Can US parts still be shipped like before with no issues? - yes, but the Declaration of Foreign Shipper is still required at the time of entry for 9801.00.10 as usual.

Although we use the 8708.29 code, could this be tested for foreign parts being punched, steel, etc. like the codes below? – I would expect US Customs to start verifying the tariff number used on goods made of these metals through CF28 forms.

The links to the proclamations can be found here:

Steel: https://www.whitehouse.gov/presidential-act...-united-states/

Aluminum: https://www.whitehouse.gov/presidential-act...-united-states/

The tariff numbers impacted are here:
The proclamation has defined “steel articles” subject to the additional duties in the Harmonized Tariff Schedule as:

• 7206.10 through 7216.50
• 7216.99 through 7301.10
• 7302.10
• 7302.40 through 7302.90
• 7304.10 through 7306.90

The proclamation has defined “aluminum articles” subject to the additional duties in the Harmonized Tariff Schedule as:

• HTS 7601 - Unwrought aluminum
• HTS 7604 - Aluminum bars, rods, and profiles
• HTS 7605 - Aluminum wire
• HTS 7606 and 7607 - Aluminum plate, sheet, strip, and foil (flat rolled products)
• HTS 7608 and 7609 - Aluminum tubes and pipes and tube and pipe fitting
• HTS 7616.99.5160 - Aluminum castings
• HTS 7616.99.5170 – Aluminum forgings

Exemptions:

Currently the only goods, under the aforementioned tariff numbers, that are exempt are goods that were manufactured (not simply purchased from or shipping from) Canada, Mexico, and the United States.

These duties go into effect at 12:01 a.m. eastern daylight time on March 23, 2018.

According to the proclamation,

“Except as otherwise provided in this proclamation, or in notices published pursuant to clause 3 of this proclamation, all steel articles imports specified in the Annex shall be subject to an additional 25 percent ad valorem rate of duty with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on March 23, 2018. This rate of duty, which is in addition to any other duties, fees, exactions, and charges applicable to such imported steel articles, shall apply to imports of steel articles from all countries except Canada and Mexico.”


The only new information to come out has been the assignment of the chapter 99 tariff numbers for the offshore steel/aluminum.

“The proclamations create new subheadings 9903.85.01 and 9903.80.01 for aluminum and steel products covered by the tariffs, as well as new notes to chapter 99 detailing the scope of the Section 232 actions.” ITT 3/14/18.

Pete

[mepstein]

If I have to pay an extra $15 for a battery tray, so be it. Thank goodness RD (and other vendors) makes 914 parts.

[gothspeed]

Sometimes I have trouble with the big words and have to sound them out because I went to a State university.

But when I read the email it seem clear that it never implied "all" parts were going up 25%. But as many have stated not all of the parts carried by RD are produced in north America.

Now as with all things written, there are better ways to phrase it that you just don't see until the second after you hit send.

Of course avoiding politics, but the reality is that the real impacts of what will happen is not completely know at this point. In the end it will be much more complex that a 25% change in price.

(IMG:style_emoticons/default/agree.gif)

Email should have started by stating that the parts manufactured in house are made with North American steel and are not affected. Go on to state that some parts aren't made in house and may be affected by the tariff. The way it came across to me seems misleading and easily misunderstood. (IMG:style_emoticons/default/confused24.gif)

I can't argue with the above (IMG:style_emoticons/default/smile.gif)

If I have to pay an extra $15 for a battery tray, so be it. Thank goodness RD (and other vendors) makes 914 parts.

agree, it is indeed a great thing these parts are being made. I have bought a few pieces from RD in the past (IMG:style_emoticons/default/smile.gif)