US starts trade case against China over auto parts

President Obama talks about his plan to encourage jobs creation in the U.S. to a crowd of supporters in Cincinnati, Ohio.

By NBC News staff and wire reports
Updated 11:35 a.m. EDT: President Barack Obama threw down the gauntlet against China on Monday, accusing the country of unfair trade practices that "harm working men and women."

"And today, my administration is launching new action against China - this one against illegal subsidies that encourage companies to ship auto parts manufacturing jobs overseas," Obama said in advance excerpts of a campaign speech he plans to give in Ohio, the heart of auto parts manufacturing in the United States.

"Those subsidies directly harm working men and women on the assembly line in Ohio and Michigan and across the Midwest. It's not right; it's against the rules; and we will not let it stand," said Obama, who has faced criticism from his Republican rival Mitt Romney over not being tough enough against China on trade.

Earlier Monday, The United States Trade Representative's office annnounced a request for dispute settlement consultations at the World Trade Organization with China about auto parts. The trade representative Ron Kirk said the subsidies give an unfair advantage to Chinese auto parts exporters which compete with producers based in the U.S. and other countries.

"We insist upon having a level playing field on which our world-class manufacturers can compete. Today we are continuing to make it clear to our trading partners that we will fight to support each job here at home that this sector supports,” Ambassador Kirk said.

Fifty days ahead of the presidential elections, Obama's speech also takes a swipe at Romney, accusing him of not supporting actions that the administration has taken against China trade practices.

"You can talk a good game, or you can play one - and my experience has been waking up every single day doing everything I can to give American workers a fair shot in the global economy," Obama said.

Quoting an unnamed administration official, The New York Times reported Monday that the domestic auto parts industry lost about half of its jobs from 2001 to 2010. The official said imports of Chinese auto parts grew by seven-fold over the same time period. The official asked to remain anonymous because of White House policy against discussing a new policy before it is announced officially.

But some of the jobs losses could have been due to a shrinking economy and lower demand for autos (which has since begun to pick up). Some may have been due to automation too.

The U.S. Trade Representative's office said it was also taking the next step in a separate World Trade Organization case it launched in June against Chinese duties on U.S. auto exports.

The USTR's announcement came not long after China filed a complaint at the WTO Monday to challenge a new U.S. law on "countervailing duties," or tariffs intended to combat export-promoting subsidies.

The complaint potentially affects close to 30 products that have previously been targeted by U.S. duties, a trade official familiar with the case said.

The complaint was aimed at a U.S. law passed in March which allowed the United States to apply countervailing measures to Chinese exports retrospectively.

Commerce Ministry spokesman Shen Danyang said China hoped the United States could "correct its mistaken policy and appropriately resolve China's concerns".

In a brief statement on the initial filing by China, the WTO said the products included steel, tires, magnets, chemicals, kitchen appliances, wood flooring and wind towers. China will file a full complaint with more details in the next few days.

Under WTO rules, China's filing of the complaint has set the clock ticking on a 60-day period during which the United States can try to settle the dispute in bilateral talks. After that, China could ask the WTO to adjudicate.

Reuters contributed to this report.

Republican strategist Rich Galen and South Carolina Democratic Party Chairman Dick Harpootlian debate whether or not President Obama's plan to take aim at China's trade policies can really save jobs in the U.S.

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Life Inc.: Swearing and other parts of the purchase of a car

Reuters

"You * @$ $% ^ make me want, riding a bike!"

OK, so it was not my best moment. My husband and I had for months been shopping for a new car, and it seemed as if we were being hijacked at every turn by a combination of auto-deficiency and disturbing practices, dealer.

The first part was understandable: we began car, shopping in earnest in February, and our indecision really hurts us as the tsunami in March Japan was. Then, it was not only difficult, the cars that we wanted, but almost impossible to get for which only a few cars at a reasonable price was around it.

The second part was not as understandable. It seemed as if we constantly misled, were.

A trader would tell us that he could get us the vehicle only for callback or e-mail back one or two days later to say that it does sorry, it would last for longer or more cost or would be only a completely different vehicle, as we had discussed. We would negotiate a price only to determine that the price was increased, or the car under our nose out sold.

I began to feel the same way, I felt that once, me when I moved over land and my stuff were delayed because the truck driver died grandmother. Twice.

At the end of the summer after our car saga began, my mother was months for a visit. Their instructions were simple: if I buy a car this weekend, they would never speak to me again.

OK, not quite what she said. But their meaning was clear; She had enough of this particularly annoying version of car talk, and also their fill is between two car seats and an endless supply of cracker crumbs on the back seat of my current vehicle had scrunched.

Three days and hours later negotiations with a dozen car dealers, it seemed that we had made an agreement. We were triumphant, only to the dealer call Sunday night home Monday morning me sorry to say that it does, the price of $500 was risen.

I had at least sense on foot in a soundproof room, and then close the door, before I let loose with my be, expletive filled tirade that ended say with me, I'd rather to work bike, car dealers.

At this moment I could honestly, I'm doing less bought this vehicle make. But I knew that one thing: I would $500 to spend more for it. In fact, I'd $1 to spend more for it.

About an hour later the car dealers again called. I had to go to voice mail. An hour later, the Manager recalled. I'll leave to that go to voicemail.

By the time that we went from the car dealership, that in the evening, we the car had what, that we wanted at the price we would originally set.

I recommend not my version of shopping for a car. All this anger may be good for you, and I can't think many things that I rather many hours negotiating with car dealers do which spent would have. How my bathroom floor, or my taxes do laundry.

But the experience did teach me one thing: If the fight for a new car, it is you best with weapons.

Here are 10 tips for buying a new car. Thanks to consumer reports, Edmunds, and others for me these helpful tips.

1. Be prepared: before you go to the dealer, you learn about the car you are interested in and competitors. Sites such as Edmunds and Consumerreports.org offer a bevy of information as well as reviews and tips on pricing. Consumer reports also recommends that you wait until you are planning, try buy the vehicles drive. The more you know about the vehicles you are interested in, which have less influence your dealer.

2. Take it a step to an era: there are many elements that buy go in a vehicle: selection of the car, decision tools, development financing, sale of your old vehicle. As consumer reports notes, many traders will try to mix it all together in the negotiating process. Their advice is to call first of all, the best price then work on other aspects of your purchase.

3. Arrange separate funding: may be able to a better deal on financing through your bank, Credit Union or other service get. Make sure that you explore at least these options before you work with your dealer about financing.

4. It may not trade worthwhile in your old vehicle: our dealer offered us a ridiculously low price for our old vehicle. When my husband said that he expected about a double, the dealer replied, "but this is the selling price!" Well, Yes. Use to find sites like Kelley Blue book, what your car really is value, and then find a buyer, you, the numbers.

5. Not be rushed: a friend sent me this great video of a guy Rob Gruhl offer tips called for the purchase of a car and not always Seattle screwed. His advice is that never, always, always a car right should buy after the first test drive. Can the car more than anything else in the world want, but get away on foot, and think that it in. Take a few days or even weeks. Chances are, at the end you will be using a lower price.

6. Get you the best rate:insurance companies, consumer groups and auto clubs, which all provide services that you negotiate the best price. The difference between the invoice price and the selling price, but also what is the fair market value in your area has a function that tells you not only what Edmunds. Use these tools and then on a number of traders, talk before you settle on price.

7 Pit car dealers against each other: Gruhl recommends a number of car dealers and questions to you call to get the best price. Tell who gives the best offer you received your money this day them.

8. Get you your offer in writing: if you negotiate by telephone or E-mail, questions you the dealer you e-Mail all vehicle information, including VIN, specifications and - most importantly - price. You support exactly compare prices and make sure that, if you are in the dealer show, you actually have a car to buy.

9. Beware of sneak attack charges: traders can take in all kinds of last-minute charges. Make sure that your dealer "go out of the match" award in the effort, all fees, taxes contains and contain licensing.

10. Skeptical: keep in mind this is not a popularity contest, it is a competition for the best price. I have a trader said, "I do not buy a car as you." Places you sure that you double check everything they say tough questions that come questions, to spirit and ready, on foot, or hang if you are not always what you think is a fair deal.

What are your tips for getting a good deal on a new car? Share them below.

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Small Japanese car parts makers of big effect

ISHINOMAKI, Japan - in the days of Japan's earthquake and tsunami knew Masahiko Horio, that he his factory back online quickly.

Customers were vocal. The backlog of orders rose.

The zinc and widgets made by his company, Horio manufacturing co., seem insignificant at first sight. But the small metal components represent a vital fraction used thousands of parts in a single car.

The global supply chain, the engine - starting the giant automaker feeds - Toyota, Honda and General in the modest company such as Horio manufacturing. Japan's recent disaster showed that a missing link to production lines around the world to a standstill can grinding.

The imperative to resume normal Edition is for small parts suppliers in all over North-Eastern Japan, press to keep the customers happy, or to lose the prospect of large business competitors in the domestic and abroad must provide. Already, companies in Taiwan and South-East Asia are orders as customers search for alternative sources of supply see climbing.

The 54 employees Horio manufacturing in hard hit Ishinomaki produce around 600 different electronic and car parts, including the basic components for car antennas and navigation systems. It managed to avoid tsunami damage, because it sits on a hill. The earthquake and power deficiencies its machines for two weeks shut yet,.

Horio, President of manufacturer, another serious problem confronted he worked desperately restart operations. A smaller company, finished and tested a dozen parts, tsunami was destroyed on 11 March. Horio could not supply the customers without this last step in the quality control of ship.

A visit to 40 minutes away, where once muses, revealed the 14-person company, Ogatsu was the extent of the damage. The frame of the building remains, but little else. A boat is except from the structure. Horio's metal parts and the equipment used, perfect them were scattered amid the debris.

But it was urgent work done be. And the President decided that if Ogatsu had no building muses, he would provide the equipment and on his own company to a new home found space.

"We other options first thought," said Horio. "But Ogatsu is fast and know how it does this job." And we did not want to impose any additional burdens on our customers.

His company is operating at about 80 percent capacity now, but the future is far from clear. Horio worries about electricity shortages in the summer, which could reduce output and whether customers elsewhere can apply.

"We need to recover only as fast as possible and make sure that our customers trust our ability to provide are," he said.

The Japanese parts crunch has on the world, from Malaysia, United Kingdom to the United States echoed. Industry analysts and U.S. traders have said, that, will cause lack of some models, especially small and medium-sized cars auto plant shutdowns in the coming months.

Toyota Motor Corp., said this week that it will suspend due to the lack of parts production in Europe for eight days. The move follows an announcement of last week that world's no. 1 would to stop automakers passenger car production in North America in April. In Japan, Toyota has suspended output except for three plants, with limited capacity run.

Toyota spokeswoman Shiori Hashimoto, said the company fought to secure some 150 types of auto parts.

Similar problems and shut down have pressed rival Honda Motor Co., Nissan Motor Co., Ford Motor Co. and General Motors co..

It is rules to watch for Hirohito Yokoyama CEO at Iwaki Diecast co., about 40 miles south of Horio manufacturing, in the town of Yamamoto embarrassing.

His company makes slightly larger parts of engines used. Sending components for torque converter, oil filter and engine control units to automakers such as Toyota and Honda.

"The worst thing for us is that we our customers line by stopping by our own production stop" Yokoyama said in an interview in the company.

The earthquake caused structural damage to the plant and equipment. The tsunami has broken thousands of parts, the employees for recovering in the surrounding rice fields. You sat in rows of boxes outside, pastries in mud and unusable.

Electricity added his miserable deficiency. Some power remained parts of the plant in the dark even when the company diesel generators recover.

The company estimates disaster cost about 300 million yen ($ 3.6 million), about 360,000 yen ($4,300) a day it is expenditure for diesel, Yokoyama said.

Iwaki Diecast and Horio manufacturing Miyagi Prefecture, are suffered in the highest death toll in the disaster. The 13.700 confirmed deaths were more than 60 percent in Miyagi. The Pacific coast is devastated, and ten of thousands evacuated life still in shelters.

Before the tsunami, Governor Yoshihiro Murai of economic roadmap to increase his Prefecture economic output 20 percent by 2016. The electronics parts Automotive important pillars were of its growth strategy.

In April 2010 Prefecture established to promote an Office for the auto parts industry, and when subsidiary a new factory in the Central Toyota Motor Co. opened in January. It had hoped to promote the local economy through the combination of small producers with the large car-related company with production in the area, including Toyota, Alps Electric Co. and engine parts maker Keihin Corp.

Instead said is now charged with assessing the damage to the industry, Fenrir Takahashi, head of Miyagi's automotive industry Promotion Office.

"We move really forward were,", he said the region of Disadter economic growth.

The main concern now is for the region parts manufacturers, if they can actually be restored.

"And also if they again, she questions whether their products sold again," he said. "If several months pass car manufacturer, may be somewhere else and form new relationships."

Copyright 2011, the associated press. All rights reserved. This material may not be published, broadcast, rewritten or distributed.

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Chrysler feeling pain of Japan parts lack

Chrysler Group LLC was the latest car producers affected by the earthquake of Japan and its aftermath, because overtime said it work on some of which would cancel its North American assembly plants due to parts shortages.

Chrysler, which is headed by Italy "Fiat SpA, said cut off overtime plants in Toluca, Mexico, and in Brampton, Ontario, in, what it the first effects of the crisis Japan."

The river which has auto parts from Japan been disrupted since a massive earthquake and tsunami in the Japan met on 11 March.

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"We have experienced no interference of the regularly scheduled production due to one of the problems in Japan." We, however some planned overtime from our take production plan in an effort to save supplier parts, which may be affected by the disaster "Said Chrysler spokeswoman Katie Hepler in a statement."

The Brampton plant, near the city of Toronto, is building the Chrysler 300 and Dodge Charger and Challenger, and the Fiat 500, which went on sale in the US market while the Toluca plant makes the Dodge journey. Those sections are used in the 500.

Chrysler previously said his minivan assembly plant in Windsor, Ontario, idle would this week due to the part not in connection with the crisis Japan bottlenecks. The plant is also minivans for Volkswagen AG.

The parts deficiency due to the crisis Japan influenced many car manufacturers, with Toyota Motor Corp., have said on Tuesday that at least one of the North American plants would probably have production to interruptions.

Story: Toyota sells 1 millionth Prius hybrid in us

The Japanese automaker said would happen first production cuts likely in this month. Previously, it had limited overtime work at the sites.

Last week, Ford Motor Co. said it would its Kentucky pickup truck plant, idle while Nissan Motor Co. Ltd. the capacity planning table adapted to the locations in the United States and Mexico non-productive days for later planned by the shift in the second and third quarters to April.

Ford had previously said it would its assembly plant in Genk, Belgium, to save parts in the idle state.

General Motors co. had shut before production in the pickup truck in Shreveport, Louisiana, due to the lack of parts.

Copyright 2011 Thomson Reuters.

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GM parts crunch forces work completed

DETROIT - General Motors co. said Thursday that a lack of parts from Japan, production at the plant to stop next week enforced pickup in Shreveport, La..

It is the first time a U.S. based automaker production in North America, parts lack earthquake and tsunami in Japan was ended after last week.

The Japanese automotive industry remained largely the earthquake hobbled industrial northeast to waste, although some manufacturers announced, resume limited functioning.

Installations for the production of repair or replacement parts will start Toyota, the world's top car maker, on Thursday. However, the company, said that its assembly plants in very Japan on next Tuesday keep closed it would the production of 95,000 vehicles.

GM makes the GMC Canyon, Chevrolet Colorado of small pickups in Shreveport. The company will not say which parts of it shortly on is, but both pickups use a five-speed manual transmission Japanese supplier Aisin Seiki.

GM's other North American plants still not so far affected. GM said it production as soon as possible resume. It has a 70-day supply of two pickups

Ford Motor and Chrysler Group, said that their plants of bottlenecks have affected not.

Traders increasing prices
Movement of popular cars like the Toyota Prius, the car was the disaster many slow. And many traders are already the advantages of the lack of expected to increase prices.

Buyer must now usually to pay sticker prices, instead of enjoying discounts are the norm for small cars and hybrids from Japan were imported. In addition to the Prius, the models include the suddenly more cost Honda insight, fit and CR-V; Toyota Yaris; and several Acuras and Infinitis.

Small cars such as the Yaris, with a sticker price of $12,955 for a base model and the Honda insight, priced at $18,200, lose their typical discounts of 5% to 10%.

The price increases "last weeks if not months," says Jesse Toprak, Vice President of industry trends and insights for TrueCar.com, a website that tracks, what cars for to sell.

Traders trade on the possibility that disruptions in the auto supplies from Japan lead to, a lack of higher demand vehicles that are. Demand will exceed supply.

So she offers sections on these vehicles, Toprak says.

Car buyers numbers rarely sticker price, also known as the EIA or suggested retail price of the manufacturer. Companies offer usually discounts from a few hundred to several thousand dollars from the EIA. Many of you offer low funding.

About all this, it is typically more room for negotiation. Toyota, had such as the bonus on the Prius, plus zero-percent financing offers a $500. And there is a $1,000 discount on the Yaris offered.

In Japan, where automotive industry in the aftermath of the earthquake, tsunami and nuclear crisis has stopped are based many small cars and hybrids.

Before the disaster, traders were a lack of hybrids like the Prius, reporting that had been demand because of higher gas prices. The Prius uses a combination of electric and gasoline power and gets 51 mpg.

'We run of cars'
A month ago, Dave Conant, said his Toyota dealer in San Diego 57 Prius hybrid for sale have. Today, he has three or four. Priuses carry a sticker price of $23,050 for a base model.

"We're going to run cars," he says.

So, he is no longer prepared to do business.

The disaster in Japan all changed. Before the last week had been increased production of Toyota Priuses. Traders wanted to sell as many as possible. But now, says Conant, he and other merchants are no longer prepared, their fuel sell cars for less than the sticker price are.

"We not had five on the floor yesterday, and I know, when I," he says. "The market has moved quickly and dramatically."

Some critics argue that dealers who lack, as a pretext, prices increase Japan disaster, and the threat by car use. Eric Ibara, Director of the remaining price advice for Kelley Blue book, says any price increases on the market are "pure speculation", now that some models face labour shortages.

Toyota declined to comment.

Honda spokesman Jeffrey Smith says that the automaker is the impact of the crisis on the supply of cars Japan review. But now, merchants have enough Japanese imports on page, and there are more on the way, he said.

Infiniti announced prices increases Monday for about half of their models. Buyers will pay more $400 to $950 per model. But Infiniti spokeswoman Paula Angelo says the price increases on the Japan disaster related.

"It is our usual practice to make mid model year price adjustments," says Angelo.

Used car prices
Used cars can be also affected. Higher prices on new cars means higher prices where used, says Tim Jackson, President of the Colorado Automobile Dealers Association. As soon as supplies of small cars and hybrids to tighten up and dealer end negotiations on the price, many customers lower their sights. Cheaper used cars become more attractive.

That higher demand pushes prices.

"Dealer pays more auctions or for repurchases, and it will result in a higher price to the consumer" Jackson says.

Copyright 2011, the associated press. All rights reserved. This material may not be published, broadcast, rewritten or distributed.

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