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View Diary: Sensata: It's (past) time for a Bain Tax! (6 comments)

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  •  Thanks. I was hoping for more reaction here, (1+ / 0-)
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    passionateprotagonist

    Before posting I considered that urging President Obama to step in and saying that he'll push for new tariffs of Chinese auto parts shift the onus from Romney to him, and that may be a concern for some. But,

    1- Romney isn't going to lift a finger to save Sensata Freeport. For him to do that would be admitting everything the Obama campaign has said about Bain Capital is true.

    2- I think Obama going to Bainport and say he's going to push for tariffs on Chinese auto parts would be a tremendous boost to his candidacy.  

    David Koch, a teacher and a Tea Partier sit down a table with a plate of a dozen cookies. Koch quickly stuffs 11 cookies in his pockets, leans to the bagger and says "watch out, the union thug will try to steal your cookie".

    by Dave in AZ on Sun Oct 21, 2012 at 12:45:38 PM PDT

    [ Parent ]

    •  Dave - do you know the size of the domestic (1+ / 0-)
      Recommended by:
      Dave in AZ

      suppliers for these auto parts and what the pricing dynamics are currently? I don't have any idea of what percentage of auto parts are supplied from the US, Canada & Mexico as compared to China. It would seem that to make a case for tariffs on the particular sensors made by the former Honeywell Sensing and Controls business unit you would need a lot of market and pricing data.

      Sensata Technologies is a huge nearly $2 billion public  company (NYSE:ST), of which the Freeport unit represents about $130 million in sales. I don't know how much of Sensata's business is auto parts or how many of those parts are manufactured in China. Do you have any data?

      "let's talk about that"

      by VClib on Sun Oct 21, 2012 at 01:47:19 PM PDT

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      •  Tom, one of the Sensata workers at Bainport said (1+ / 0-)
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        VClib

        in his live blog that they sell the sensors made at Freeport to GM & Chrysler (but not Ford), and a subsidiary of Seimens that distributes them to Japanese carmakers with assembly plants in the US.

        My best guess is that with the low cost of labor & government subsidies in China, Freeport thinks they will be able to make those sensors in China for around half the cost it does in Freeport. Figure in shipping cost back to the US and standard low import tariffs, that cost savings would only be around 35%. That's why I think a special tariff of 55% (the maximum recommended by USITC for Chinese tires) could convince Sensata they'd be better off staying in Freeport.

        David Koch, a teacher and a Tea Partier sit down a table with a plate of a dozen cookies. Koch quickly stuffs 11 cookies in his pockets, leans to the bagger and says "watch out, the union thug will try to steal your cookie".

        by Dave in AZ on Sun Oct 21, 2012 at 03:12:44 PM PDT

        [ Parent ]

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