Re: [FWDLK] 1958 Dodge Production

[Bill Watson <wwatson5@xxxxxxxxx>]

You are right about CKD, but do not understand the term "dumping".
"Dumping" is where a country exports goods to other markets at prices lower
than sold on the home market.    And, no, you cannot "dump" product in the
United States as the American government does go after any country fhey
perceive as "dumping" goods, real or imagined.  The "imagined" dumping
arises when the American government decides to support an industry that is
having difficulty keeping its head above water - the steel industry, for
example.

The United States of America most certainly does have import duties on
imported vehicles, which is why Honda, Toyota, Nissan, etc. have opened
assembly plants in the U.S.  For the more popular models, it is more
economical to assemble vehicles in the U.S. with parts from American
suppliers along with some imported parts than to get nailed with import
tariffs on the whole vehicle.   So the United States market is not so
different from Australia, etc. except that the import duties are not as
high.

The United States of America is the only country I know of that has a
special VIN digit to denote vehicles assembled in the United States with
mostly imported parts - "4".   The first digit on the VIN adopted for the
1981 models year for cars sold in North America denotes the country of
origin.,  When Diamond-Star first started building cars for Mitsubishi and
Chrysler they had to use "4" as the first digit of the VIN as they used more
imported parts than American.  ("1" is for the United States, "2" for
Canada, "3" for Mexico, "6" for Australia, "9" for Brazil while letters are
used for European and Asian countries.)

The British assembly plant at Kew assembled vehicles using imported bodies,
chassis, drivetrain, glass, etc. and used British suppliers for its 12-volt
electrical systems, leather interiors and other bits.  British auto
manufacturers were really into leather back then.   And during the 1930's
Chrysler Great Britain had a unique serial number for each vehicle they
built, along with the American or Canadian serial number.

The Canadian plant was the first foreign plant to get away from CKD
production (actually started back in the Maxwell days).  Australia was next
in 1957 with the Chrysler Royal but Mexico, South Africa, and South America
did not get away from CKD production and into true local production until
the late 1960's.

British auto manufacturers also got into CKD manufacturing with foreign
licencees - the first Datsun in 1932 was based on the Austin 7, as was the
BMW Dixie.  The first Datsun cars sold in North America in the early 1960's,
the Bluebird, clearly showed their Austin heritage in the engine
compartment.and body styling.  Isuzu started building Hillman Minx cars in
Japan in the 1950's and many Hillman owners look to more moden Isuzu engines
and transmissions for their cars as they bolt in with very little
modification.  Mitrsubishi built the Henry J car and the Willys Jeep for
Asian markets while Hino built the Renault 4CV in the 1950's and 1960's.
The first Nissan, by the way, was introduced in late 1937 using the tooling
for the Graham Crusader purchased from Graham-Paige.

By the way when bodies in CKD package are shipped to a plant that does the
final paint coat, the bodies are referred to as "body in white".  As CKD
shipments are usually done by ship, steel parts cannot be shpped unprotected
from the elements.  Thus they are painted white before shipping to protect
the metal against the salt air during transport.

Bill
Vancouver, BC


----- Original Message ----- 
From: Marv Raguse
To: L-FORWARDLOOK@xxxxxxxxxxxxx
Sent: Friday, February 03, 2006 4:16 AM
Subject: Re: [FWDLK] 1958 Dodge Production


In a message dated 2/3/2006 3:28:40 AM Eastern Standard Time,
esierraadj@xxxxxxxxx writes:
How did all the materials and componentry, for the Belgium-made cars GET
to the Belgium assembly plant?

Were there 'duplicate' fabrication facilities, in Europe, or, in
essence, were un-assembled cars sent there, to be assembled?
CKD refers to "Completely Knocked Down" vehicle.  Parts are stacked and
shipped in boxes perhaps as many as 15 to 20 sets of parts in each box.  Now
it may take 10 or more boxes to complete the vehicles but that is how they
go to the place of assembly. At the assembly facility the boxes would/will
be opened and parts stacked along the line.  Frequently some parts are sent
in assembly alreadyif it makes logistical sense and the import rules allow.
You can have "Partial Knock Down" also.  Local tariff requirements often
dictate.  Only the good ole US is an open market where anyone can dump. Some
tariffs are 50% and more.  Imagine if an imported Toyota cost that much more
over here. Or we manadated local content,not NAFTA.  How many would they
sell?  Chrysler has, from time to time, CKD'd all around the world.
Recently like Thailand for example.  Chrysler CKD'd Jeeps there.  Latin
America for trucks and Jeeps. Alot of content goes to Graz, Austria for
Jeeps and Voyager Minivans.  Haven't assembled in Belgium or Kew GB in many
years..Also many countries specify how much content must be local and how
much assembly must be local.
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