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Spy shots have recently come out of China that purport to show one of the first Chinese-made GLAs. The Chinese-made GLA will be on sale In China starting in May; however, the GLA is already available in the country for import.

China has trade and tax laws that disadvantage companies that import products instead of manufacturing them inside the country. So an imported GLA cost consumers so much that most stayed away. The price of an imported GLA is 270k yuan to 578k yuan. Those prices will change to about 220k yuan - 450k yuan once the GLA is built in China.

It appears that there are really not any differences when you compare the Chinese-made GLA to the foreign made GLA. Really the only difference is where it is built. That means that most of this story just brings focus to the power of tariffs when you are a huge market. Those laws basically dictate where Mercedes-Benz builds its vehicles. Its crazy when you think about it.

Do you notice anything interesting about these spy shots coming out of China? What do you think about tariffs that influence where auto companies decide to build their vehicles?
 

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I think we should all look at Japan as an interesting model of protecting its domestic auto industry. they have stringent protocol, yet barrier free entry for 5,000 cars of one model, once you pass 5,000 imports you have to conform to manufacturer regulations, below its a gaping loophole...
 
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