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“Most consumers have never even heard of counterfeit airbags.* Tragically, it’s not just that these products don’t protect people in the event of a collision, they can inflict their own serious injuries or even death, often acting quite literally like a bomb when deployed American Honda Motor Co. said today.”
These ‘airbags’ come from illicit businesses operating in China and other overseas markets and are primarily sold in the dark underbelly of the secondhand parts market, before being installed in the vehicles of unsuspecting customers here in the U.S. While the full scope of any underground economy is impossible to fully quantify, data indicate the threat is growing. In the first half of 2024, The Wall Street Journal reported there were at least five fatalities or serious injuries caused by counterfeit airbags. NHTSA issued an advisory encouraging consumers to protect themselves and their loved ones. Continue reading
Trump Tariffs – His Next Economic Catastrophe
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Shoot from the lip President Trump, aka Calamity Donald, today imposed tariffs of 25% across North America disrupting the North American auto market that has thrived on 30 years of free trade. Any new tariffs in place for any significant length of time will be disruptive. The tariffs at 25% are significantly higher than the profits made by the automakers and their suppliers. It is widely – if not universally – held by economists that this is an economic disaster.
The tariffs are a sharp violation of the free trade deal with Canada, Mexico and the United States that Calamity Donald, renegotiated during his first administration. Using the dispute-settlement system to eliminate or adjust the tariffs could take years. Calamity Donald has already said he won’t act on any ruling against the United States. Roughly 44% of the new vehicles sold in the U.S. last year were imported from countries across North America, Europe and Asia. The automotive business involves a large and complex global supply chain, so new tariffs will challenge an industry that is already facing high costs. Higher costs mean fewer affordable vehicles for consumers. Higher costs result in lower sales volume in an industry that is central to U.S. economic health. (Read AutoInformed.com on: EV Satisfaction Improves But Trump Chaos Looms and Tariffs – Trump’s Next Economic Disaster Looming) Continue reading →