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Toyota and Texas

Discussion in 'Chit-Chat' started by Red Herring, Aug 11, 2005.

  1. Red Herring

    Red Herring

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    There was an interesting editorial on the telle last PM on an auto talk show. The commentator was talking about the growth of Toyota and the comparitive decline of the big 3. He was making a case that although it might not be true, there exists the preception that the big 3 produce low quality product, and that this pervasive perception was what was doing them in.

    He also argued that the profit in the N/A manufacturing was in trucks... no $$ in cars, but big $$ in trucks. I'm sure we all knew that, but his point was that just as Toyota and the other Japanese companies have started to dominate the auto industry, so too are they starting in on the truck sector. They are gaining ground, and in doing so, are really starting to undermine the big 3.

    An interesting point he brought up was the opening of the Toyota truck plant in Texas (GW's back yard). He was speculating that this might have been a deliberate slap in the face to 'ol GW his self. He also speculated, and now I am getting to my question, that in doing so they have opened themselves up to possible reprisals like reverting to the tarriff system, or quotas. I thought this an interesting point, but not probable.

    What do you all think. In this day of free trade, NAFTA, yadda yadda... will the auto industry revert to tarriffs and quotas in an attempt at self preservation?
     
  2. stinkyfj60

    stinkyfj60

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    I am not sure what that would be a slap in the face to GW or anyone else... kind of silly actually. By building plants in the US there are more American workers employed. Nothing but benefits. As American companies have moved some of their work out to Canada and Mexico I dont see why Toyota, Nissan, Honda and others building stuff here is a slap in the face to anyone. Odd...
     
  3. Red Herring

    Red Herring

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    Agreed. The slap in the face theory does seem a little far fetched. I think his point was, are they pushing their luck, and are reprisals imminant?
     
  4. stinkyfj60

    stinkyfj60

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    No, I think they will probably be rewarded for it more then anything...
     
  5. swank60

    swank60

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    I don't really see the slap in the face angle as far as GW is concerned, but GM builds most of it's trucks here, I believe. The Suburban or Taho is built here in Arlington. Plus, it's a right-to-work state (which basically means workers have no rights) so that's a benefit for a big company like that. (That's why all of the overseas manufacturers come to the South.)
     
  6. swank60

    swank60

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    Nah, the steel tariff debacle a few years ago is going to keep the politicians away from that...
     
  7. alvarorb

    alvarorb Color Geek in Charge

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    By establishing plants in the US, the Japanese auto makers have freed themselves somewhat from trade sanctions. If there ever was a increase on foreing built automoviles, it would not affect those build here. Either by the big 3 or anybody else.

    Regards

    Alvaro
     
  8. wob

    wob

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    And that's a good thing, right?