Posted on 03/04/2007 10:02:31 AM PST by LdSentinal
WASHINGTON — From a high-school auditorium near the birthplace of Elvis, Toyota was greeted like a hometown hero last week when it announced its eighth vehicle assembly plant in North America.
Students cheered as the automaker showed off a Highlander sport-utility vehicle that will be built starting in 2010 at the $1.3 billion plant near Tupelo, Miss. Gov. Haley Barbour called Toyota Motor Corp. the "world’s premiere auto manufacturer," and Sen. Trent Lott, the Senate’s No. 2 Republican, promised, "When you are in our constituency, we are warriors on your behalf."
Toyota’s choice of Mississippi for a new plant should give it more clout on Capitol Hill. With Michigan-based automakers facing hardships, a few more members of Congress on its side helps as Toyota takes on some lawmakers who openly question whether what’s good for Toyota and other Japanese automakers is good for America.
"They’re manipulating the yen and it creates big differences in what they can sell their automobiles for," said Sen. Debbie Stabenow, DMich., who represents thousands of Detroit-based autoworkers.
Stabenow and other lawmakers representing manufacturing states complain that the Japanese government has kept the yen artificially low, allowing their auto producers to undercut competitors and reap huge profits in the United States. They note that 46 percent of Toyota’s U.S. sales in 2006 came from vehicles imported from Japan, even as the company highlights its American work force and assembly plants in advertising.
Toyota could surpass General Motors Corp. as the world’s No. 1 automaker next year, but the company has downplayed the significance, saying it’s more concerned with its customers and maintaining quality.
In U.S. sales released Thursday, the company had its best February ever, posting sales increases of more than 12 percent.
Privately, Toyota officials acknowledge the potential pitfalls of growing rapidly in the U.S. during a period of job cuts and plant closings for GM, Ford Motor Co. and DaimlerChrysler AG’s Chrysler Group.
Seiichi "Sean" Sudo, president of Toyota Engineering and Manufacturing in North America, warned in a recent presentation that the automaker could become "a scapegoat" as its Detroitbased competitors work through turnaround plans.
Toyota has opened a major advertising campaign, touting its job creation in America. Toyota has 10 plants in eight states and will start producing Camrys at a Subaru plant in Indiana this year. It also has a research-and-design center in Ann Arbor, Mich., it plans to expand.
The company has many allies in Congress, from members of the California delegation to Sen. Mitch McConnell, R-Ky., and Sen. Jay Rockefeller, D-W.Va., who helped bring an engine plant to his state.
But some members of Congress and advocacy groups question whether Toyota is unfairly benefiting at the expense of U.S. automakers, which face large health-care and retiree costs they say are exacerbated by Japan’s currency practices. The weak yen puts domestics at a price disadvantage of several thousand dollars per vehicle, they argue.
In a letter last month to Treasury Secretary Henry Paulson, four House Democrats said the weakened yen had allowed Japanese automakers to increase their exports to the United States by more than 30 percent in 2006.
The Bush administration has been cool to a protectionist approach. Paulson, in a speech Thursday, said erecting barriers would hurt the economy and lead to "lost jobs and lost opportunity."
Members of Congress who support domestic automakers concede that they face major hurdles. Rep. Mike Rogers, R-Mich., said that "you can’t swing a dead cat in the parking lot (on Capitol Hill) without hitting a Toyota or Honda or a Mitsubishi. I don’t believe it’s a political problem."
The Camry, after all, remains the nation’s top-selling passenger car. Rogers, who grew up in the rural outskirts of Detroit, said he remembered the days when "you did not consider buying a foreign car. Now, I think the attitude of America has changed."
From my post:
"US manufacturers could use a little polish on the fit and finish but they don't make junk."
I take it neither of those vehicles were experiencing any kind of failure due to what I'd call shoddy finishing. What you point out is where American manufacturers have some work to do, IMO. I expect cutting those little corners saves them a great deal in union wages.
And yet the idiots continue to vote for Evan Bayh!
I'm not sure. The Republicans had all those years and didn't do a blessed thing about illegal immigration. If the Dems don't either, the Republicans will get back in.
"What I'd like to know is why are the Japanese so much more capable of shooting for trends and Americans so sluggish."
I think, historically, this has bitten the big three a few times. Detroit is generally not one to go in for trends and fads while the Japanese create trends and fads. Drifting, tuner cars, etc.
The trends that Americans create (hotrodding, big muscle, etc.) were squashed by the government.
Also Toyota had the funds for the kind of tooling it takes to crank out a completely new car like the Prius. Retooling production costs out the wazoo for Detroit. I read somewhere the R&D and tooling costs for Fords 4.6L cost near a billion dollars.
I believe you are wrong.
It stands for General Motors Corporation. According to one of my friends in the auto-biz, that emblem is THE ONLY difference between the two vehicles. They are made in the US as well as Canada. And, in the same plants.
Not to mention that MS has a nicer climate than Detroit (if you like warm, muggy weather). :^)
They've already announced that there will be diesel engines. And those medium trucks? Yeah, they already have diesels.
And Nissan *may* be getting the Cummins, as Mercedes is making noises like they want to use their own diesels in the Ram now.
My uncle, a 40 year union man, bought a used Toyota pickup truck after a string of GM lemons. He's now a Toyota convert and just bought a new Camry.
Raw wire ends. Nice! Not to mention it looks like about 3 pounds of electrical tape was used to wrap the wire harness.
I'm loving it as Michigan continues to fall behind states like Mississippi in economic development. Arrogant folks up North have been laughing at the poor South for generations and will soon get a taste of their own medicine.
You are right about this. It's been happening for quite some time actually.
I'm all for choice - if it's good I'll look at it.
I agree with you. I think the GMC brand was created so that other GM dealers, like Pontiac, would be able to sell GM-made trucks.
The funny thing is that many smug, wanna-be-elite liberals won't even consider buying American brand cars. Not because of quality issues but because American cars are not up to their aesthetic or status symbol standards. There have been many heated arguments between union thugs and latte-liberals on this issue on leftist blogs and discussion forums.
How about we try "Union thugs and the Democrats who need their cash don't like Japanese car makers" -- There that's much clearer now.
I buy quality and value ...
As opposed to 9 feet of snow in the winter?
Cost had very little to do with my decision to buy a Toyota, it was all about reliability and service life. Many of Toyotas vehicles actually cost more than the typical Detroit vehicle.
Very true. And almost any other state as well. And the same for Gore. In any event, most of the genuine conservatives have already fled those states. You can't count on any of them in the GOP column.
From where I sit the only hard core liberals are union domos - much of the rank and file fits the profile of what I call Reagan democrats - but pocketbook issues are a big influence. And there are a lot of retirees from the auto industry who vote too.
Do you know how to get out of the rain, are do you know when it's raining?
Most all vehicles that have a multiple engine platform, have a general wiring harness. That means there are wires that are not used if you have a different motor platform. If you look inside your computer you will find the same thing unused sockets and wire's .
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