» » Tesla urges tariff exemption for Chinese-made car computer 'brain'

Tesla urges tariff exemption for Chinese-made car computer 'brain'

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"Increased tariffs for this particular part cause economic damage to Tesla through increased costs and an impact on profitability,” the company said in a statement that was not previously reported in the government.

Tesla, led by technical billionaire Elon Musk, is one of many companies, including American automaker General Motors Co No. 1, to warn of rising costs associated with the tariff war between the two largest economies in the world.
The Chinese-made computer that Tesla used in a car assembled in Fremont, California, had an import of $ 16 billion. United States, which in 2018 was charged with 25 percent tariffs in the United States Trade Mission.

In an edited request published by the USTR on December 17 on a government website, Tesla did not identify the supplier of the computer. But he said that he could not find another manufacturer "with the required specifications, in the requested amount and in the time required for further growth of Tesla".

Tesla, who called the computer model 3 "the brain of the vehicle," added that "the choice of any other supplier would postpone the program (model 3) for 18 months with the installation of clean rooms, line testing and staff training."
The use of a new supplier "significantly increases the risk of poor quality parts, which can lead to general problems with vehicle quality, which may affect the safety of our vehicles and consumer acceptance of the final product," added Tesla in her request for tariff reductions.

Tesla declined to comment on the issue of tariffs on Friday. But this led to aggressive cost cutting because it works to achieve production goals for the Model 3, which has become the top-selling luxury sedan on the US market along with the larger model S.

Other automakers have been looking for similar exceptions, but have not yet received a response.

In late July, GM requested an exemption from the 25 percent US tariff on its Chinese-made Buick Envision sports car. Envision accounted for almost 15 percent of Buick's US sales last year, although sales fell 27 percent.
In October, GM also looked for exceptions for about two dozen parts, including the ignition buttons and transmission bearings. Nissan Motor Co and Fiat Chrysler Automobiles NV also filed requests for parts exclusion, while Uber Technologies Inc. [UBER.UL] requested an exception for electric bikes rented through the Uber app.

The Trump administration has introduced 25 percent tariffs totaling $ 50 billion. US annual exports of China and 10 percent tariffs for an additional $ 200 billion. USA in China's exports. Tariffs were in response to what the Trump administration calls China's dishonest trading practices.


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