Toyota # 1

[Kalalau]

Last week Toyota replaced General Motors as the largest auto producer in the world.

[Vanguard]

Re: Toyota # 1

Congratulations to Toyota!

Now perhaps the film Gung Ho will become relevant again.

[Random]

Re: Toyota # 1

You see. Japanese don't need to bomb Pearl Harbor. Eventually they will claim the United States.

"Made in the USA" have so little meaning now.

[joshuatree]

Re: Toyota # 1

Last week Toyota replaced General Motors as the largest auto producer in the world.

Good, now that GM doesn't have to be obsessed with being the largest auto producer, they should start focusing on being a profitable auto producer.

[oceanpacific]

Re: Toyota # 1

You see. Japanese don't need to bomb Pearl Harbor. Eventually they will claim the United States.

"Made in the USA" have so little meaning now.

EVENTUALLY??? Hasn't it already happened?

TOYOTA, HONDA, NISSAN, and MAZDA are already classified as "domestic" manufacturers for the vehicles they assemble in the USA. All while some "American" cars are made in Mexico and Canada.

[timkona]

Re: Toyota # 1

Both of my American Made, Non Union, Toyota's are excellent cars. Corolla and an Echo.

Good old American manufacturing, without the interference of Unions. You gotta love that.

[Kalalau]

Re: Toyota # 1

I caught the start of an old movie on TV this a.m., probably done in about 1965 or so. I always find the background, incidental shots interesting as cultural or historical markers. In this case, a parking lot at an airport--not a single Japanese or Korean car, a couple of VW bugs and a van, and everything else American. This was a time when America's economy was stable, growing, strong, and dominant. It would seem that if we want to return to that economic state, it might be necessary to actively subsidize Detroit automakers and discourage import of foreign cars, as well as cars manufactured by foreign interests here, with quotas and fees. Not popular, but strong medicine seldom is. And if the gvt. actually subsidizes or loans to Detroit it should have the ability to require high quality and good mileage. There may be another way around this economic disaster, but this is the best I can come up with regarding the auto industry.

Unions are not the enemy. You want prosperous customers walking into your store, not poor ones. When America was prosperous and growing, the unions were the strongest, the benefits and pay the best--one firm's employees = anothers customers.

[joshuatree]

Re: Toyota # 1

I caught the start of an old movie on TV this a.m., probably done in about 1965 or so. I always find the background, incidental shots interesting as cultural or historical markers. In this case, a parking lot at an airport--not a single Japanese or Korean car, a couple of VW bugs and a van, and everything else American. This was a time when America's economy was stable, growing, strong, and dominant. It would seem that if we want to return to that economic state, it might be necessary to actively subsidize Detroit automakers and discourage import of foreign cars, as well as cars manufactured by foreign interests here, with quotas and fees. Not popular, but strong medicine seldom is. And if the gvt. actually subsidizes or loans to Detroit it should have the ability to require high quality and good mileage. There may be another way around this economic disaster, but this is the best I can come up with regarding the auto industry.

Unions are not the enemy. You want prosperous customers walking into your store, not poor ones. When America was prosperous and growing, the unions were the strongest, the benefits and pay the best--one firm's employees = anothers customers.

Right now, it is the high cost of union labor (benefits, etc) that is making each sale of an American brand car unprofitable. You can't just wish for nostalgia and think we can go back to 1965. What was GM's market share of the world market then and now? It is only a fraction these days. America's economy had no competition back then as every old world country was still rebuilding from utter devastation by WW2. America's industrial complex was mostly left unscathed by WW2.

American workers who are employed by foreign manufacturers aren't poor folks. They make decent wages but not outrageous perks such as job banks where one still gets 95% of their paycheck even if laid off.

[Kalalau]

Re: Toyota # 1

Another area where the gvt. might have to take charge, even substitute itself, is in banking. Wherever the bank bailout funds have gone (some used for acquisitions, some used for pay perks and fabulous rest rooms) not enough of it is being loaned out to businesses to keep them afloat. Every job lost is both a personal tragedy for the individual and the loss of a tax payer to share the burden with the rest of us. Losing 100,000 jobs in a week is not acceptable, especially if it is happening because banks are not loaning operating capital. Rather than rely on the banks to loan out our tax money, wouldn't it make more sense for the gvt. to just loan it out to operating companies? Evidently Britain has nationalized some banks. This flies in the face of all we have ever been taught about capitalism, it is an unpleasant awakening, but if the private institutions are failing to keep the economy operating, it would seem that having the government do it is the only alternative.

Repeating an earlier point, it is our befuddled private insurance health care system that adds about $1,100 to the cost of each car produced in the US, while in Canada or Japan the cost added by health benefits to employees comes in at only $100. It is very nice that health insurance executives can earn bonusses of $1.4 billion. How nice for them. But honestly, does it make any sense to let our entire economy collapse just so they can bank that much cash?

[timkona]

Re: Toyota # 1

Unionized auto mfg is sinking fast. Non union auto mfg in the US is succeeding.

But it's not the unions that are the problem.

So glurg.

[joshuatree]

Re: Toyota # 1

Repeating an earlier point, it is our befuddled private insurance health care system that adds about $1,100 to the cost of each car produced in the US, while in Canada or Japan the cost added by health benefits to employees comes in at only $100.

So how are the foreign manufacturers with US plants able to avoid this? I'm not aware of the American worker employed at the Toyota plant in Kentucky using a different health care system than the worker at the GM plant in Detroit????

[GeckoGeek]

Re: Toyota # 1

because banks are not loaning operating capital. Rather than rely on the banks to loan out our tax money, wouldn't it make more sense for the gvt. to just loan it out to operating companies?

Funding growth is one thing, but loaning operating capital? Sounds like a failing business to me. And no, I don't trust the government to make good decisions on who should get loans and who should be allowed to die.

[Kalalau]

Re: Toyota # 1

That is undeniably a good point. Perhaps the non union workers lack health coverage. Whatever they lack, it subtracts from their purchasing power which ultimately makes them less capable of keeping you employed by buying whatever your company has to sell. We can race to the bottom if we want, have child labor like back in the good old days when Upton Sinclair wrote "The Jungle".

[GeckoGeek]

Re: Toyota # 1

Perhaps the non union workers lack health coverage.

I seriously doubt that.

Whatever they lack, it subtracts from their purchasing power which ultimately makes them less capable of keeping you employed by buying whatever your company has to sell.

Overpaid workers result in overpriced products which don't sell. So we end up with fewer (if any) workers.

[joshuatree]

Re: Toyota # 1

That is undeniably a good point. Perhaps the non union workers lack health coverage. Whatever they lack, it subtracts from their purchasing power which ultimately makes them less capable of keeping you employed by buying whatever your company has to sell. We can race to the bottom if we want, have child labor like back in the good old days when Upton Sinclair wrote "The Jungle".

Foreign manufacturers in the US hardly pay child labor wages. In fact, after factoring in performance based bonuses, they make more than union workers. The non union workers don't lack health coverage. Toyota spends about $700 per year on average for health care spending. I think you should consider the drag union dues puts on its workers instead and the sense of entitlement. Non-union workers share the costs of insurance and retirement plans, something done in the real world.