I'm having a hard time justifying the price difference.....
I will guess Korean manufacturing labor is paid half as much per hour as union labor in Deere USA manufacturing plants.
Labor costs, when it comes to manufacturing, is typically not that important of a factor.
I don't know how long it takes to put a tractor together but
Harbour Report tells us that there was a grand total, engine, transmission, stamping, final assembly.... All of it, took around 32 Man Hours back in 2006. That's as recent as I can find without turning into Sherlock Holmes. Which I have no interest in doing for this -- Post, I guess. And I have no doubt, there is NO question, that they have improved vastly the HPV (hourspervehcile) in the last 15 years.
So assuming Koreans get about half what American Workers get, overall, let's say that amounts to $1,600 Per Vehicle in the US and $800 PV in Korea. And this is also assuming that Korean Plants are as efficient as American Plants (They aren't. Not even close, but that's getting into the weeds)
Let me just start by ssaying, Wowee Zowee, batfink!!!! A whole 800 bucks!!! Somebody call the Marines!!!
Then there's the cost of shipping it here. Is that free? Methinks not, said Shakespeare. For a whole tractor, figure at least $500 in shipping. Then there's the Import Tariff. I can't pin that down. Mostly because I don't care but let's assume that it's around the import duty for cars from MFN (Most favored Nation) Countries. Around 2%
On a $25k Tractor, that's another $500.
So what happened to that Wowee-Zowee whole $800 in Saved Labor? If my figures are correct (doubtful) then it costs money to buy Korean. Which is how it's supposed to be anyway.
When it comes to medium to heavy manufacturing, Labor has virtually nothing to do with importing from overseas. Less than nothing.
The reasons Korean tractors are cheaper are many and varied. Their companies don't demand as much profit per vehicle, they don't have the unpredictable shut downs from unpredictable Unions to deal with. They don't have the overhead in buildings and salaried employees. It used to be, you could walk into the generic motors HQ in Dee-Troit and find half of last year's U of M and Michigan State football team sitting in offices doing nothing. They don't pay stoopid taxes (some countries actualy WANT to keep their people employed), they don't have to bend over for an out of control agency like the epa every time they want to expand, they don't have to pay off criminal politicians and victim groups. Maybe they use inferior materials?? doubt it
And maybe they're subsidized by their own governments sometimes. Which is kinda doubtful because we'd nail their testes to the wall for that (dumping)
There are a lot of reasons why Korean Tractors are less than Deere Tractors. But 'floor' labor isn't one of them.
Or maybe, Deere is just that much better.
right