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."
So a Chrysler hourly employee takes his 100K settlement, moves to MS, buys a cheap house for cash and starts working for Toyota. He as a great resume and a great new job with a successful company employing thousands of american workers.
Where's the downside again?
I suggest using Reagan and Harley Davidson as a case study.
Sometimes political expediency has to override libertarian economics, or we wind up with socialists in charge.
Reagan intuitively knew what it took to walk this fine line.
well IIRC an Ohio win for JFKerry would have made him President?
No, its liberal democrats from Michigan who are wrecking their own economy. Michigan is the only state in the union still stuck in a recession while the majority of the country is experiecing historical economic growth and sucess.
America steps in to prop up large industry all the time but I think America's automakers need to show they are willing to do their part also.
Congress should be irked at who is really responsible for Toyota's success.
Ford and GM.
"If they start coming up with lower end brands with a separate nameplate from their parent company, watch the quality on them drop."
Lexus - Toyota - Scion
Scion would be that lower end.
It's not GMAC on the front of the trucks, its GMC. The GMC lets you know that it's not an American made Chevy with the familiar bow tie, it's an import. GMC stands for General Motors of Canada. It's the same truck, just built on the other side of the Detroit River.
What a load of crap claiming this is because of currency manipulation.
The reason they can price their cars affordably is that $3000+ of the price tag doesn't go to pay pensions.
Good place to open a cathouse.
The Titan 2500 is coming next year. The 3500 will be out a year or so after that.
The Japanese have lots of experience making medium trucks - those UD or Hino Diesel, or similar? Yeah, they're all Japanese.
Another thread of people who haven't own an American car in years much less been under the hood of one bashing American cars because one they had 25 years ago was crappy.
I have bought two cars and a full-sized truck in as many years. EVERY TIME I tried to buy a Toyota but never did because they were never the best buy. Their cars are some of the ugliest on the road. The reason people buy them? The same reason people aren't buying American. Reputation.
For the last 10-15 years American drive trains have, for the most part, been on par with imports, if not better in some areas. US manufacturers could use a little polish on the fit and finish but they don't make junk. People who call American cars junk demonstrate that they are sheep and will parrot whatever they hear that fits their pre-existing beliefs.
The 3.9L V6 in my old G6 put out 240HP, and was a still a pushrod engine. Mated to the 6-speed it got 30 MPG, actual. Not only did Toyota not make a sports coupe with any power, they didn't even put a manual trans in their wimpy V6 cars. Oh, I only paid 24,400 for it. There was not another car on the market that could deliver that performance at that price.
I traded it for a Nissan Titan 4x4. Tried to buy a Tundra but my limit was 30K. I can barely get a Tocoma 4x4 for that, much less a full size.
I know why Americans started buying Toyotas and as a result of that, why they still do. What I cannot understand is why they insist in spreading BS about the quality of modern American vehicles and call them "junk". I'm not saying they've topped the imports but that in no way makes them "junk".
Agreed. Even on the low rolling hills here in SE PA you need an F-350 to pull a 4-horse, otherwise the horsies may take you on the ride of your life.
A global meltdown would ensue if the yen strengthened any further.
BUMP
See post number 28.
They need to have a diesel to get my attention, because for the cost you don't have as much engine life with gas engines.
What I'd like to know is why are the Japanese so much more capable of shooting for trends and Americans so sluggish. Say what you want to about the Prius but it's successful and only the Japanese seem to be capable of going after trends. American companies seem to think if they make it we'll buy it.
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