Is Toyota's Success Really Good For The US Economy?

It is good for the USA. AS Toyota's sales should also have increased in the USA and most of the cars now been sold in the USA are made there too.

Most of the Toyota automobiles.

"Is Toyota's Success Really Good For The US Economy?"

Of couse it isn't. Forget the fact that these guys also have plants and jobs in the US.
These Japs are here to riun us and turn the entire landscape into an uninhabitable desert. Remmember Pearl harbor?

They will set up concentration camps here and take away our right to freedom and liberty.

Only one man will stop these guys. One man whose name is Alan Mually. And he will do so by giving Ford Execs. millions of dollars as bonuses, while laying of thousands of workers.

Chrysler will also save us using their crap-tastic products.

I LOVE MY AMERICA!!

What about all the recall that plagues Chrysler, Ford.
Sure, Toyota/Lexus and Honda also recall, but other than GM, Detroit is a real goner.

I don't know if Lexus is Number 1 Forever but I will say that Toyota's good for America because it gives the middle class people something reliable and economical to drive. Not to mention the jobs created by having to train new techs to work on these autos and what not.

Exaclty. There is a trickle down effect and the whole economy is benefited.

Belive it or not but high-end automakers like BMW, M-B create more jobs than bread and butter automakers like Hyundai, Dodge.

It's only good for America to the extent that it creates manufacturing jobs here. Actually, I live in Canada but our economies are inextricably linked and I believe we still are still each other's largest trading partners. The problem I have with Japan is that they have a "closed" car market that prevents U.S. car companies from competing fairly there.

Well maybe Canada should start their own car manufacturing company and show us how it's done.

Well that may be the case soon. Magna International, and some Russian Billionaire are looking into aquiring Chrysler. So who knows what the outcome will be. Thats not to mention that the 300C and the Audi A8 were both designed by a Canadian.

Walter de'Silva is Canadian? Wow, you must know more than me, because I could've sworn he's an Italian ex-Alfa Romeo designer.

Lets look at the facts of the article:

As of 2007, all foreign manufacuters employ 95,000 people in the US, as compared to 377,000 for the domestics.

The Japanese central bank intentionally weakens the Yen against the dollar to increase their profits.

The article cites 8 foriegn owned plants in the United States. (all in rural areas in order to keep salaries down)

Toyota reported 14 billion dollars in profits for 2006, I wonder whose economy will see all that cash?

Im not an economist, but I do not see any benfits here, unless they build a plant in my back yard.

"The article cites 8 foriegn owned plants in the United States. (all in rural areas in order to keep salaries down) "

The NUMMI plant is right between San Francisco and San Jose. I dont know if you can get any more rural than that.

If i am not mistaken I believe Toyota has a Joint venture over there with GM. Thats where they produce the matrix/vibe.

There is is this mistaken belief that by supporting the UAW somehow good is being done.
GM , Chrysler, Ford all are closing plants in Michigan about as fast as they can.
Business demands that profits be made, not some namby pamby touchy feely "what about jobs in unrban areas".

Toyota and allother competition is fantastic for the US. That what defines us here. Its what makes the products be the best . Competition. As for unfair advantages, please bear in mind if the market feels that the currency is artificially supported its will be bought up by traders. The reality being that the Japanese budget deficiet is even worse then the US.

Lets look at the facts of the article:
(Inline reply )

As of 2007, all foreign manufacuters employ 95,000 people in the US, as compared to 377,000 for the domestics.
Ans: I will not cross check your erroneous statement, but simply point you to the Steel industry. US manufacturers are bloated, they realize that and are shedding jobs as fast as possible.

2)The Japanese central bank intentionally weakens the Yen against the dollar to increase their profits.
Ans: Circa 1980's info. In todays currency market, no country quite has the heft to artifiically support their currency for more then 100 basis points without having traders snap them up.

The article cites 8 foriegn owned plants in the United States. (all in rural areas in order to keep salaries down)
Ans : Well, factories should be in rural areas so there is more developemnt in the US areas that are underserved.Unless you feel there should be ahuge factory in downtown NYC. Plus,Toyota in fact pays about the same if not more then GM in Michigan. What they dont have in the disease named UAW.

Toyota reported 14 billion dollars in profits for 2006, I wonder whose economy will see all that cash?
Ans : Global economy !!! Companies when they report profits use it mainly to a) fluff their dividends, b) invest in their cash reserves or capital investments. ( I repeat , profit, is not Cash on hand , and is not used by Toyota employees to visit nudie bars and drink beer)

Im not an economist, but I do not see any benfits here, unless they build a plant in my back yard.

Ans: That, is the first thing on which i totally agree. Your grasp of global economics borders on the criminally weak. As for a plant in your backyard, i wouldnt hold my breath if i were you .

Izfuney, I respect and understand your argument. But every rebuttle you gave has to do with economnics on a global scale. This article has to do with United States. I understand very well the affects of globilization on the world economy. But when you take into account the number amount of cars toyota sells to the number of employees it has in the US it is criminal.

I think Toyotas success is good for the economy for the simple fact that their customers have very little to worry about when purchasing their vehicle. Reliable transportation can only be a good thing for the working class person that relies on their car everyday right? They've also made GM do a complete turnaround and start churning out products that aren't half bad lately. That competiton keeps the cars safe, reliable and at reasonable prices.

From both a global economical, as well as a consumer perspective, Toyota's success is good for America, which others have already (and will continue to) pointed out.

As a Detroiter who has watched so many suffer hardship recently and when I was in high school 25 years ago, it's hard to be objective. I resent that Toyota and Honda have had the playing field tilted in their favor and US governments have done nothing about it for the past 30 years. I resent that GM and Ford execs are so obstinate that they can't see what's happening. Just a few years ago GM and Ford were the first and third largest companies in the world. Thanks to our trade policy, thanks to the captains of corporate America, thanks to our insane lack of health care, our auto industry is being flushed down the toilet. It isn't just the Japanese. Ontario produces more cars than Michigan in 2005, for the first time. CAW wages are higher than UAW wages. You do the math.

I don't think that's good even though many get jobs but at the same time workers get laid in GM.

Workers get laid in GM? Wow, that would make up for my bonus.

Toyota jobs are beneficial only in that they provide workers with an income. I doubt it means very much to the US economy due to the fact that we have very little industry left in this country and money spent on consumer items only sends more profit out of the country.

A perfect example is the huge deficit we have with China right now. They will come back here with the money we pay for their trinkets and they will buy our assets. Not a very good exchange if you ask me. Japan is the same.

We have economic policies in this country that have allowed us to be colonized by many other countries that were always economically inferior but due to the lack of a "level playing field" they have been allowed to progress at our expense.

We are debtors now in all respects and will remain so because of the endemic problems we have in our economic policies.

toyota does provide reliable, reasonably priced cars for middle america.

however, it's not necessarily good for the economy. the US has a horrific current account deficit that's driven largely by imports from japan and china. so as a nation we continue to go into massive debt to fund the current account deficit. an economically precarious position that cannot go on indefinitely.

omg im moving to canada. haha whatever, look guys its the same thing that happened when call center jobs and bottom tier software engineering jobs went to india. do not be mistaken that companies like GM are going down the toilet. this simply isnt true. sure they arent hot, but they are the #2 car maker.

its not gonna matter if joe blow in michigan loses his job to a canadian or if he gets hired by hyundai to work in kentucky. the point is american workers have to make themselves competitive. you cant expect the US gov to hold Ford's hand while their workers are killing themselves off.

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key word, guys, is EFFICIENCY.

toyota is profitable because they crank out cars with less man-hours per vehicle than anyone else. they also make products people LIKE to buy.

they also offer, with their efficient lean production plants, what's been called "quality at no additional cost." considering the quality of build and reliability, they could have been asking mercedes prices for mere toyotas, by just adding higher grade materials (like leather interiors etc.) in effect, they HAVE DONE THIS, in the Lexus line. even the cheapest toyotas STILL have better build quality and reliability than any benz.

"even the cheapest toyotas STILL have better build quality and reliability than any benz."

This is where you lose me. Reliability is better than the last-gen Mercedes products- but the new wave, such as S-Class, CL, C, next E... those are all going to incorporate streamlined electronic systems to make them much more reliable.

And build quality? Keep dreaming. Give me a break. I can rip the leather off the door of my wife's RX330 with my bare hands.

now, aside from all the arguments about jobs, toyota has also been good for the american economy (and everywhere else they sell cars) because of overall EFFICIENT USE OF RESOURCES.

if toyota owners can KEEP their cars for 10-12-15+ years before they trade for another new car, except for salesmen and dealers, the WHOLE ECONOMY BENEFITS. there is far less waste of resources, manpower, and materials in supplying the transportation needs of the driving public.

and there is no reason to believe this is not happening. compared to 10 year old toyotas, other cars are only this old, when they have the SAME RATE of problems: hondas: 7.5 years, nissans: 5.3 years, fords: 4.3, chryslers: 3.5 years, gms; 3.3.

so when problems get to the point where most domestic owners would trade after 3-4-5 years, toyota owners with similar tolerance for repairs need trade only every 10-12 years or so.

savings to consumers and the economy generally FAR OUTWEIGH whatever loss of jobs the 2.5 may suffer.

this is IN ADDITION TO the FUEL CONSUMPTION savings over the lengthy ownership periods, of more efficient cars.

greater good for more people...

"they also offer, with their efficient lean production plants, what's been called "quality at no additional cost."

this is analogous to the watch industry, when Seiko started using industrial robots to build reliable, accurate, high quality low cost watches.

the swiss watchbuilding industry was hurt, unable to match superior accuracy and reliability at LOWER production costs. but consumers worldwide benefited immensely.

this all happened with mechanical watch movements.

today, with electronics and quartz movements, the advantage of modern production methods has only increased. (it's TOUGH in the business world!)

the swiss watchbuilding industry still survives. they just had to reposition themselves, shifting to high end models emphasizing design and luxury.

"mere" accuracy and reliable movements had become cheap and commonplace. consumers planet-wide enjoyed this advancement.

toyota has done the same with autos, so its advancement to #1 on the planet was inevitable. as a consumer, you can enjoy the progress.

if you're a 2.5 employee or salesman in one of their dealerships, learn to live with it. like former swiss watchmakers, your ranks WILL be thinned out. if your skills are exceptional, you'll be among the surviving workers in the industry.

otherwise, adopt the philosophy, "If you can't beat 'em, join 'em!" (anyone can at least buy toyota stock and share in the profits. ;) )