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Toyota, an All American car company?
BBC ^ | Friday, January 12, 2007 | Steve Schifferes

Posted on 01/12/2007 1:47:04 PM PST by Jedi Master Pikachu

Having made tremendous headway in the US market with its small, energy efficient petrol-electric hybrid cars, Toyota is getting ready to take on its US rivals on their home turf with an American model of its own.

Toyota's Tundra pick-up truck is the Japanese company's first all-American vehicle, completely designed and manufactured in the good 'ol US of A.

Toyota Tundra
Toyota's Tundra: designed, built and marketed in the USA

"The Asian automakers have cornered the market on vanilla," says Global Insight automotive analyst Rebecca Lindland.

"Now they're adding the hot fudge chocolate with cherries on top, which is what they have to do to progress in the US market."

Toyota has built a spanking new assembly plant for the Tundra in San Antonio, Texas, which is supported by a slew of design and development centres across the country.

It hopes its US branding will attract truck buyers in the American heartland in the West and South and help it achieve sales of 200,000 Tundras this year alone.

"Toyota is going after a new segment with its truck - heartland America, NASCAR drivers, who are more patriotic [and] not Toyota drivers typically," says Ms Lindland.

"It is good to base production in Texas - heartland of this group."

Climbing the ladder

Toyota knows that for it to reach these NASCAR-watching men, being patriotic has to be part of the pitch.

Our goal is produce all the cars we sell in the US within US

Toyota sales executive Jim Lentz

If it succeeds here, the company that would be hurt most would be Ford, the market leader in pick-up trucks.

Pick-up trucks are big business in America, where trucks (including minivans - or people carriers - and sports utility vehicles - or SUVs) outsell cars by some margin.

And although demand for big SUVs is falling, demand for smaller so-called crossover models - or CUVs - is growing sharply.

Success could also elevate Toyota from third position in the US, to second after General Motors, knocking Ford into third place in terms of the number of cars and trucks sold.

Boosting capacity

Toyota is deadly serious about building up its US manufacturing capacity to match its rising sales.

Robert Lutz, vice chairman, General Motors view the Toyota Tundra
The Tundra was designed to spook the locals

The company already produces more than 1.5 million cars in the USA, but it sells 2.4 million.

The number of locally produced Toyota models is set to soar as the car maker is planning to open another two new plants next year, and probably at least another two by 2011.

In total, this should add at least 500,000 to its production capacity.

"We are a global company, but we have to apply our global lessons locally and to localise production," Toyota's US president Jim Press tells BBC News.

"Our goal is produce all the cars we sell in the US within US."

Toyota's strategy of designing globally but manufacturing locally is characteristic of the new global division of labour in the car industry.

GM has also merged its design teams around the world, creating common platforms for different sizes of cars, while modifying the designs to local conditions.

Toyota, however, also has a broader political purpose in mind.

No unions

In the 1980s, after pressure from the Big Three automakers and their unions, Toyota's exports from Japan to the US were limited by a so-called Voluntary Export Restraint agreement.

That was when Toyota decided to build up as much manufacturing capacity in the US as possible, opening its first plant in Kentucky in 1988.

Toyota is keen to stress that it is still adding jobs, while GM, Ford and Chrysler are axing the jobs of thousands of unionised workers.

Workers in Toyota's US plants have never voted for a union, and some observers believe that union work rules would impede its vaunted just-in-time production system.

But with the Democrats now back into control of Congress, and the 2008 Presidential race up for grabs, there have been renewed calls by the unions to give preferential treatment to American-owned carmakers like Ford and GM.

One proposal is for a special tax-break for petrol-electric hybrids built in the USA, aimed at attracting Toyota's Prius model, which is still only made in Japan.

Toyota is already converting the rest of its range to offer a hybrid option, and expects to sell more Camry hybrids than Prius hybrids in the future.

In the past 30 years there has been a dramatic change in the US car industry, which at that time had 90% of its cars built by US companies in the USA.

Now foreign owned companies - mainly Japanese and Korean, though there are also a fair few Europeans doing well here - sell and build nearly half of all cars sold in America.

This has caused a certain amount of unease among Americans, and not just in Detroit.

Yet, the trend is likely to continue as the likes of Honda and Nissan, Hyundai and Kia, follow suit and start branding their cars as Made in the USA.



TOPICS: Business/Economy; Culture/Society; Foreign Affairs; News/Current Events
KEYWORDS: american; automotive; big3; ford; globalism; toyota; trade; tradeunion; union; unions; vehicles
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Steve Schifferes often takes a not-so-much-a-fan-of-the-United-States view, at least about global warming (he all but mocked American and American vehiicle companies opinions on man-made global warming.
1 posted on 01/12/2007 1:47:08 PM PST by Jedi Master Pikachu
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To: Jedi Master Pikachu
vehiicle vehicle and warming).

Interesting that Toyota has no unions.

2 posted on 01/12/2007 1:49:09 PM PST by Jedi Master Pikachu ( WND, NewsMax, Townhall.com, Brietbart.com, and Drudge Report are not valid news sources.)
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To: Jedi Master Pikachu

Most Toyotas are already more American than cars from the major American manufacturers.


3 posted on 01/12/2007 1:49:16 PM PST by antiRepublicrat
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To: antiRepublicrat

Hey, more power to them.

I'd never buy one but they're playing smart and fair so good for them. Hopefully US automakers will learn.


4 posted on 01/12/2007 1:55:13 PM PST by Raymann
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To: Jedi Master Pikachu

Are you sure about that? None?


5 posted on 01/12/2007 1:56:50 PM PST by 38special (I mean come'on.)
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To: Raymann

I wouldn't buy one either, but I do admire them.

Now, if the Japanese come out with a full-size full-frame RWD coupe with a V8...


6 posted on 01/12/2007 1:57:54 PM PST by CertainInalienableRights
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To: Raymann

I wouldn't buy one either, but I do admire them.

Now, if the Japanese come out with a full-size full-frame RWD coupe with a V8...


7 posted on 01/12/2007 1:57:59 PM PST by CertainInalienableRights
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To: Jedi Master Pikachu

Interesting that Toyota has no unions.






Toyota has unions in Japan. The Japanese workers are covered. Though the Japanese unions have slightly different organizational model and function than American unions.


8 posted on 01/12/2007 1:59:36 PM PST by durasell (!)
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To: Jedi Master Pikachu

I've seen this truck up close, and it is an amazing vehicle. Powerful, sleek, comfortable - very very nice.


9 posted on 01/12/2007 2:00:32 PM PST by Rightwing Canuck
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To: antiRepublicrat

More accurately "North American". The Corolla is made in Canada.


10 posted on 01/12/2007 2:01:52 PM PST by Squawk 8888 (Pluto's been marginalized! Call the ACLU!)
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To: antiRepublicrat
Most Toyotas are already more American than cars from the major American manufacturers.

Do you have any data to back up that claim? I'm a Honda owner myself, so I don't have a particular axe to grind in this debate, but I don't believe that it's true that a typical Toyota has more American content than a typical vehicle from GM or Ford.

... the Automobile Trade Policy Council, a lobbying group funded by GM, Ford, and DaimlerChrysler AG, says the domestic content of all Toyota vehicles sold in the United States -- including imported models -- is 48 percent. Honda's is 59 percent and Nissan's 45 percent. For GM and Ford, the domestic parts content is 73 percent, and for DaimlerChrysler, it's 72.
http://www.boston.com/cars/news/articles/2006/09/24/made_in_america_hard_to_tell/
11 posted on 01/12/2007 2:04:00 PM PST by irishjuggler
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To: Jedi Master Pikachu
- Good Luck Mickey! -


12 posted on 01/12/2007 2:05:30 PM PST by TexasCajun
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To: TexasCajun

Toyota Tundra is made in Princeton, Indiana..............no unions..........I worked there for 3 years.


13 posted on 01/12/2007 2:06:52 PM PST by Gillmeister
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To: Jedi Master Pikachu

I finally found the secret to Toyota's success! It's the gold-plated piston rings. I read this little tidbit in this weeks CarTalk:

Q: Dear Tom and Ray: I have a 2001 Toyota Avalon that I bought in January 2006 with 88,000 miles. Within the first two weeks of owning it, it started blowing blue smoke. By the time I brought it in for service the warranty was up. My mechanic told me he talked to the Toyota dealer about the problem, and Toyota told him that the six-cylinder cars had "gold-plated" piston rings, and when the car gets to 100,000 miles it will quit blowing smoke. Well guess what, I hit 100,000 miles a couple of weeks ago and it's still blowing blue smoke. The garage told me it would cost $4000. Can you help me? Signed, Dora.

A: I think you have a sludged engine, Dora. Yes, even mighty Toyota screws up sometime, and this was an engine they've had problems with. Apparently the oil-return holes were not big enough and oil and sludge build-up get stuck at the top of the engine, starving the bottom of the engine for oil. That leads to stuck rings and sometimes complete engine failure. This was a problem on V6 engines sold in Camry's, Avalons, and Lexuses between 1997 and 2002.

Evidently her Camry wasn't the only one blowing smoke.


14 posted on 01/12/2007 2:10:20 PM PST by 38special (I mean come'on.)
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To: Jedi Master Pikachu

They make no mention of the class action lawsuit which toileta lost recently. Seems 3.5 million of their prized crap will be affected because the engines quit running do to sludge build up.

Poor engineering of oil return passages. My my. The media conveniently misses the bad stories on riceburners like they avoid anything which is bad about their other love, the liberals.

For those who worship those things I realized I have blasphemed.


15 posted on 01/12/2007 2:10:23 PM PST by Proud2BeRight
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To: Squawk 8888

..my Corolla was built at NUMMI in Fremont, CA...


16 posted on 01/12/2007 2:26:19 PM PST by WalterSkinner ( ..when there is any conflict between God and Caesar -- guess who loses?)
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To: Proud2BeRight

Once you are the best, your mistakes count less. It's like that in everything.


17 posted on 01/12/2007 2:27:09 PM PST by SteveMcKing
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To: antiRepublicrat
Most Toyotas are already more American than cars from the major American manufacturers.

Seems one should have some proof before making such a questionable statement. According to this the first Toyota is #18 on the list.

US-Assembled Cars Percent US/Canada content Name Corporate Profits
Ford Econoline 95% USA USA
Lincoln LS (production ended April 2006) 90% USA USA
Ford Escape 90% USA USA
Mercury Mariner 90% USA USA
Ford Ranger 90% USA USA
Cadillac DTS 90% USA USA
Chevrolet Silverado, GMC Sierra 90% USA USA
Mazda Tribute (Ford) 90% JAPAN JAPAN
Mazda B-Series (Ford) 90% JAPAN JAPAN
Lincoln Town Car 85% USA USA
Mercury Mountaineer 85% USA USA
Ford F-Series 85% USA USA
Chevrolet Colorado, GMC Canyon, 85% USA USA
Buick Rainer, GMC Envoy, Chevrolet TrailBlazer 85% USA USA
Isuzu Ascender (GM) 85% JAPAN JAPAN
Dodge Viper 85% USA GERMANY
Isuzu i-Series (GM) 85% JAPAN JAPAN
Toyota Sienna 85% JAPAN JAPAN
Dodge Grand Caravan – SWB 83% USA GERMANY
Chrysler Town & Country – SWB 82% USA GERMANY
Chrysler Sebring convertible 82% USA GERMANY
Jeep Wrangler 82% USA GERMANY
Ford Five Hundred 80% USA USA
Ford Expedition 80% USA USA
Ford Explorer 80% USA USA
Ford Freestyle 80% USA USA
Lincoln Mark LT 80% USA USA
Cadillac CTS 80% USA USA
Pontiac Solstice 80% USA USA
Chevrolet Corvette, Cadillac XLR 80% USA USA
Chevrolet Malibu, Pontiac G6 80% USA USA
Cadillac SRX 80% USA USA
Dodge Caravan – SWB 80% USA GERMANY
Toyota Camry 80% JAPAN JAPAN
Toyota Tundra 80% JAPAN JAPAN
Dodge Durango 79% USA GERMANY
Dodge Stratus 78% USA GERMANY
Mitsubishi Raider (Dodge) 78% JAPAN JAPAN
Dodge Dakota 77% USA GERMANY
Chrysler Sebring 77% USA GERMANY
Jeep Commander 76% USA GERMANY
Mercury Montego 75% USA USA
Chevrolet Uplander, Pontiac Montana SV6, Saturn Relay 75% USA USA
Chevrolet Cobalt 75% USA USA
Honda Ridgeline 75% JAPAN JAPAN
Honda Pilot 75% JAPAN JAPAN
Toyota Avalon 75% JAPAN JAPAN
Toyota Corolla 75% JAPAN JAPAN



18 posted on 01/12/2007 2:27:34 PM PST by Golden Eagle
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To: CertainInalienableRights

full-frame?

in other words you want a 6,000 lbs, 2-door, v8 powered land yacht?

(btw, there was the lexus (toyota) sc400, v8, 2-doors, rwd, but built on a unibody design)


19 posted on 01/12/2007 2:29:34 PM PST by fhlh (Liberal (noun): A person so open minded, their brains have fallen out of their head.)
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To: Toddsterpatriot; Mase; expat_panama; nopardons

Infernal insourcing will never stop ping.


20 posted on 01/12/2007 2:34:04 PM PST by 1rudeboy
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