regfootball

Automakers are increasingly going global

28 posts in this topic

So far, the domestic parts content figures have not been a drag on Japanese automakers' sales in the United States, and several studies have shown that buyers tend to ignore those numbers on the window sticker. But there is some evidence that American buyers may simply not know much about automotive sourcing.

Art Spinella, an industry sales expert with CNW Marketing Research, held focus groups in five cities last month to measure perceptions of Toyota's American-ness. After showing the groups the parts content figures for major automakers, a majority of those tested were surprised that Toyota's 48% average was so far below that of Detroit automakers.

"The perception among most folks was that there was far more North American content in Toyota than Honda," Spinella said. "They were very surprised at the relatively low percentage in Toyota, overall, and somewhat disappointed."

free press

Among Detroit automakers, General Motors Corp. had the highest average domestic parts content by sales in its 2006 models at 80%. Ford Motor Co. was second with 79%, and the Chrysler Group averaged 73%. In last year's survey, GM averaged 81%, Ford hit 82% and Chrysler averaged 76%.

http://www.knollenberg.house.gov/blog/?p=55

The Yen, Domestic Content, and Toyota

The Detroit Free Press ran a big story on the frontpage of its business section yesterday that showed the vast differences in the domestic content of vehicles from GM, Ford, Chrysler, and Toyota. The American car companies all had domestic content percentages in excess of 7o percent. Toyota came in below 50 percent because nearly half of the vehicles it sells in our country are imported (this is roughly the same percentage of imports Toyota had in the 80s before it began “investing in America”).

Toyota is working overtime and spending lavishly on political ads to convince the American people and American policymakers that there is no economic difference between buying a Big 3 vehicle and a Toyota vehicle. Nothing could be further from the truth.

Toyota employs 34,000 people in America. The Big 3 employ nearly 400,000 people in America. The Big 3 build 7 out of every 10 cars made in our country. The Big 3 purchase almost 80 percent of all U.S. auto parts. The Big 3 impact more than 7 million jobs in America. Toyota and all of the other foreign companies combined impact less than 2 million jobs.

The vast difference in the economic footprints of the domestic car companies and Toyota points up the importance of the yen issue. Because Japan manipulates its currency, Toyota and the other Japanese automakers have a big competitive advantage over the domestic industry. Toyota derives a $4,000 to $10,000 per car edge over the Big Three because of yen subsidies on its imported vehicles and parts.

If you haven’t voted in my online poll on yen subsidies and Toyota’s unfair advantage, do so now by clicking here.

P.S. - Last week, Toyota sent some company officials to meet with my staff in DC. After the Toyota officials learned of my concerns with the yen subsidy, the participation in my online poll skyrocketed from 250 participants and a 96 percent YES vote on doing something about the unfair yen subsidy to more than 1,700 participants with a 70 percent do nothing on the yen vote. Coincidence? You decide.

Edited by regfootball
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Wow, I didn't know Toyota was that low...I thought I had read once that they were around 63% for American parts content. So much for baseball, apple pie, and Toyota.

Edited by mustang84
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I'm actualy very pleased with the numbers given as a fan and supporter of the Big Three and as a guy who despises Toyota with every fiber of his being.

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What Toyota builds in the US is 76%, which is on par with everyone else.

That's why Toyota is opening 5 more plants in the USA...

And you cited a Michigan Congressman, and a Detroit newspaper. Sure those aren't biased sources either haha. :scratchchin:

But yes we take note these 5 plants will NOT be in Michigan. All the hatred unites in Michigan. Plenty of Americans outside Michigan will welcome more jobs.

Michigan is on the way down, as xenophobia keeps it from opportunities.

Edited by JT64
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What Toyota builds in the US is 76%, which is on par with everyone else.

repeat

Toyota came in below 50 percent because nearly half of the vehicles it sells in our country are imported (this is roughly the same percentage of imports Toyota had in the 80s before it began “investing in America”).

toyota as a whole...under 50%

I agree US automakers need to branch away from michigan and go more global but that is a separate issue from toyota trying to project a [pedigree of being American and they simply are not being American. No one would call them on it if they didn't try so hard to cover up the fact that they are not American.

Edited by regfootball
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This entire debate reminds me of one of my favorite Monty Pyton skits where a bunch of old timers sit around and brag about how bad their child hoods were....does it matter if Toyota is at 70% or 50%? Ultimately, Toyota will do what is best for Toyota (as would be expected), but isn't it obvious by now that they won't be happy until Ford and GM are completely gone? This has gone way beyond normal good natured rivalry, in my mind.

Once GM and Ford are gone, then Japan Inc will be pretty much free to do what it wants. Just look at the ruins of the television/electronics business in North America to see the future. Japan Inc is relentless (they do have the full support of their government, after all) and will not stop at half measures. They have already won the PR war (that much is also obvious), but I wonder what it will take to finally wake up the sleeping Masses.

Perhaps Toyota could buy shares in GM to prop it up. Wouldn't that be nice?

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What Toyota builds in the US is 76%, which is on par with everyone else.

That's why Toyota is opening 5 more plants in the USA...

And you cited a Michigan Congressman, and a Detroit newspaper. Sure those aren't biased sources either haha. :scratchchin:

But yes we take note these 5 plants will NOT be in Michigan. All the hatred unites in Michigan. Plenty of Americans outside Michigan will welcome more jobs.

Michigan is on the way down, as xenophobia keeps it from opportunities.

Actually, Art Spinella and CNW are not biased (in favor of the domestics anyway)

This is just part of the MASSIVE war of deception being waged by Toyota... They will stop at nothing to sway america and americans are ignorant enough to believe everything they say as well.

They'll win the war... It'll take time, but they will. I was confident in a GM revival, but now that it is blatantly obvious that the government doesn't give 3 $h!s about Detroit, and in fact is willing to sacrifice them, www.aintgonnahappen.com.

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...you cited a Michigan Congressman, and a Detroit newspaper. Sure those aren't biased sources either haha.

toyota = unbiased:

Last week, Toyota sent some company officials to meet with my staff in DC. After the Toyota officials learned of my concerns with the yen subsidy, the participation in my online poll skyrocketed from 250 participants and a 96 percent YES vote on doing something about the unfair yen subsidy to more than 1,700 participants with a 70 percent do nothing on the yen vote. Coincidence? You decide.

haha.

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Actually, Art Spinella and CNW are not biased (in favor of the domestics anyway)

This is just part of the MASSIVE war of deception being waged by Toyota... They will stop at nothing to sway america and americans are ignorant enough to believe everything they say as well.

They'll win the war... It'll take time, but they will. I was confident in a GM revival, but now that it is blatantly obvious that the government doesn't give 3 $h!s about Detroit, and in fact is willing to sacrifice them, www.aintgonnahappen.com.

I wonder if Toyota owns Consumer Reports. And how many Kevin Bacon degrees you have to go to to put it together.

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Toy manufacturing locations:

Lexus IS made in Japan

Lexus ES made in Japan

Lexus GS made in Japan

Lexus RX made in Japan and Canada

Lexus SC made in Japan

Lexus LS made in Japan

Lexus LX made in Japan

Lexus GX made in Japan

Yaris is made in Japan

Corolla is made in California or Canada

Matrix is made in Canada

Prius is made in Japan

Camry is made in Kentucky or Japan

Solara is made in Kentucky

Avalon is made in Kentucky

Tacoma is made in California or Baja California (Mexico)

Tundra is made in Texas or Indiana

Sienna is made in Indiana

Sequoia is made in Indiana

RAV4 is made in Japan (to be made in Canada soon, factory being built)

Highlander is made in Japan (to be made in Mississippi in several years, factory announced)

Land Cruiser is made in Japan

4-Runner is made in Japan

Scion xA is made in Japan

Scion xB is made in Japan

Scion tC is made in Japan

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Likewise on the GM side.

Click here for GM facilities in the US. Broken down by each state then plant.

GM has it broken down by state showing not only vehicles built there but also the # of employees at each facility, in addition to various facts of the plants history and local community.

Some interesting numbers from ( http://www.gm.com/company/corp_info/global...rica/index.html ) for North America

Years ended December 31

2004 2005

Total net sales & revenues ($U.S., in millions)

$114,545 $104,755

Net income (loss), $U.S., in millions

$1,409 ($8,239)

Net margin

1.2% (7.9%)

Production volume (in thousands)

Cars 1,997 1,834

Trucks 3,223 3,022

Total GMNA

5,220 4,856

Vehicle unit sales (In thousands) Industrywide, North America

20,282 20,542

GM market share (NA)

26.7% 25.5%

Industry – U.S

17,302 17,455

GM market share (U.S.)

27.2% 25.9%

GM cars

24.9% 22.6%

GM trucks

29.0% 28.5%

Employment (in thousands)

181 173

For the US Link.

Years ended December 31 2004 2005

Vehicle unit sales (In thousands) industrywide, U.S. 17,302 17,455

GM as a percentage of industry 27.2% 25.9%

GM cars 24.9% 22.6%

GM trucks 29.0% 28.5%

U.S. hourly payrolls excluding benefits (in billions) $8.7 $8.0

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the real hardcore toyodaphiles are very snooty about even American made Toyotas, the perception is still strong that American made japanese cars do not match the quality of real Japanese ones. That is why all the Lexus are made in Japan. The people that buy them are still snooty enough to demand their cars be made in JAPAN. Some XENOPHOBIA coming from that end. We always get ripped here about Xenophobia of the Japanese companies but its equal xenophobia from the customers that specify they want the real japanese stuff. Not the sloppy Camlees made in Kentucky. The trucks Toyota makes here probably for cafe reasons or something.

Toy manufacturing locations:

Lexus IS made in Japan

Lexus ES made in Japan

Lexus GS made in Japan

Lexus RX made in Japan and Canada

Lexus SC made in Japan

Lexus LS made in Japan

Lexus LX made in Japan

Lexus GX made in Japan

Yaris is made in Japan

Corolla is made in California or Canada

Matrix is made in Canada

Prius is made in Japan

Camry is made in Kentucky or Japan

Solara is made in Kentucky

Avalon is made in Kentucky

Tacoma is made in California or Baja California (Mexico)

Tundra is made in Texas or Indiana

Sienna is made in Indiana

Sequoia is made in Indiana

RAV4 is made in Japan (to be made in Canada soon, factory being built)

Highlander is made in Japan (to be made in Mississippi in several years, factory announced)

Land Cruiser is made in Japan

4-Runner is made in Japan

Scion xA is made in Japan

Scion xB is made in Japan

Scion tC is made in Japan

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the real hardcore toyodaphiles are very snooty about even American made Toyotas, the perception is still strong that American made japanese cars do not match the quality of real Japanese ones. That is why all the Lexus are made in Japan. The people that buy them are still snooty enough to demand their cars be made in JAPAN. Some XENOPHOBIA coming from that end. We always get ripped here about Xenophobia of the Japanese companies but its equal xenophobia from the customers that specify they want the real japanese stuff. Not the sloppy Camlees made in Kentucky. The trucks Toyota makes here probably for cafe reasons or something.

It kind of makes me sick that hardcore Toyota fans think Americans do shoddy work.

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It kind of makes me sick that hardcore Toyota fans think Americans do shoddy work.

While arguing about cars in another forum I post at, a few of the Japan Inc defenders have said that Toyota's recent drop in quality is probably because more of their parts are American-sourced.

You're right, it is disgusting.

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>>"...a few of the Japan Inc defenders have said that Toyota's recent drop in quality is probably because more of their parts are American-sourced."<<

Good- perhaps it'll snowball and a large-scale rejection of American-assembled toyotas will occur, hopefully cumulating in plant closures.

Hey, I can daydream.

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Toy manufacturing locations:

Camry is made in Kentucky or Japan

Camry production is shortly coming to the U.S. Subaru factory.

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What Toyota builds in the US is 76%, which is on par with everyone else.

That's why Toyota is opening 5 more plants in the USA...

And you cited a Michigan Congressman, and a Detroit newspaper. Sure those aren't biased sources either haha. :scratchchin:

But yes we take note these 5 plants will NOT be in Michigan. All the hatred unites in Michigan. Plenty of Americans outside Michigan will welcome more jobs.

Michigan is on the way down, as xenophobia keeps it from opportunities.

That 76% might be the percentage of Toyota (not including Lexus/Scion) vehicles assembled in North America, however it does not say anything about the domestic content. The content consists of the parts that go into each vehicle. The domestic percentage includes parts sourced from the U.S. and Canada. The new Tundra and Camry have a very high percentage at 80%, however the rest of the lineup (including Lexus and Scion) bring the overall percentage of domestic content to 48% for all vehicles sold in 2006. That is compared to Honda at 60% and GM at 80%. Nissan is worse at 45%.

Edited by siegen
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but isn't it obvious by now that they won't be happy until Ford and GM are completely gone? This has gone way beyond normal good natured rivalry, in my mind.

If that were true, wouldn't Toyota stop buying parts from Delphi (largest customers of Delphi save for GM) and thus put more pressure on that end? Likewise wouldn't they give back the Fremont CA factory to GM with its reputation for the worst labor relations in all of GM's plants? In so doing wouldn't GM need to pay more UAW retirement costs and more UAW medical costs that are now being paid for by Toyota? Wouldn't GM have more surplus production capacity? By the way I have never bought a Toyota. We just all need to take a deep breath. GM makes great cars with a great warranty. GM has more engineering potential (Kettering Institute, etc. ). This bitching and moaning and making up bizarre comparisons like the number of employees for Toyota verses all of those for GM+ Ford + Chrysler isn't helpful.

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Corollas are also made in Japan, even though the Japanese Corolla is different. Tariffs make the importation of pickup trucks uncompetitive.

Of course a number of these vehicles are not made by Toyota, but by affiliated companies:

Toyota Auto Body: Prius, LandCruiser, LX470 (and a host of vans and SUVs not sold in the US)

Kanto Auto Works: Century, Crown, Corolla Spacio, Corolla wagon, Isis, Yaris sedan, SC, Auris

Central Motor Co.: Raum, MR-S, Scion xB, Corolla sedan, Corolla hatchbacks

Gifu Auto Body: Hiace

Daihatsu Motor,Co., Ltd.: Rush, Passo, Probox, Succeed, bB, Porte, SIENTA

Hino: Dyna, Townace/Liteace, FJ Cruiser, Toyoace, Hilux Surf (Japanese market 4Runner)

Toyota Industries Corp. (the original textile machinery company Toyota Motor was spun off from): Yaris hatch, RAV4

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What Toyota builds in the US is 76%, which is on par with everyone else.

That's why Toyota is opening 5 more plants in the USA...

And you cited a Michigan Congressman, and a Detroit newspaper. Sure those aren't biased sources either haha. :scratchchin:

But yes we take note these 5 plants will NOT be in Michigan. All the hatred unites in Michigan. Plenty of Americans outside Michigan will welcome more jobs.

Michigan is on the way down, as xenophobia keeps it from opportunities.

Dude you cannot get this line?

domestic parts content by sales

the real hardcore toyodaphiles are very snooty about even American made Toyotas, the perception is still strong that American made japanese cars do not match the quality of real Japanese ones. That is why all the Lexus are made in Japan. The people that buy them are still snooty enough to demand their cars be made in JAPAN. Some XENOPHOBIA coming from that end. We always get ripped here about Xenophobia of the Japanese companies but its equal xenophobia from the customers that specify they want the real japanese stuff. Not the sloppy Camlees made in Kentucky. The trucks Toyota makes here probably for cafe reasons or something.

Yeah that is the new anthem of the import humpers. Calling their own countrymen producing cars doing &#036;h&#33;ty job and yet praising Toy for "Building" jobs in USA.

Aren't those import humpers "killing" jobs in US by using this logic?

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Dude you cannot get this line?

Yeah that is the new anthem of the import humpers. Calling their own countrymen producing cars doing &#036;h&#33;ty job and yet praising Toy for "Building" jobs in USA.

Aren't those import humpers "killing" jobs in US by using this logic?

doesn't matter, as long as they get to buy that Lexus they want.

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I wonder if the Japanese government pits city against city like we do here? I can't believe people would be making light of jobs being lost in Michigan, just because Kentucky or Texas is getting some. That is just outrageous.

Japan Inc is laughing all the way to the bank and must absolutely love watching us North Americans eat our own!

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