IF Toyota Pulls The Plug On Its $13B Investment In The U.S. Market, Will President Trump Get The Blame — And Will He DESERVE It?

IF Toyota Pulls The Plug On Its $13B Investment In The U.S. Market, Will President Trump Get The Blame — And Will He DESERVE It?
This week was an interesting one. The ebbs and flows of the equity market's volatility is closely correlated with the tensions surrounding trade.

These trade headwinds are dramatically impacting progress. And, frankly, it's a shame.

Recently though, this was taken to all-new levels. That's because President Trump went on the record and stated that import autos are presenting a national security threat to the U.S.

I am still scratching my head.

Trade poses a national security risk? Huh?

This caused a ripple effect across the automotive industry and some companies are not keeping quiet. In fact, the team at Toyota issued a statement. One line implied that it sends a message to Toyota that "our investments are not welcomed."

That said, Toyota has said it will invest $13 billion in the U.S. market by 2021. If President Trump's rhetoric DERAILS that, does he deserve the blame?

What say you, Spies?



...Toyota Motor Corp on Friday criticized U.S. President Donald Trump’s decision to declare some auto sector imports a national security threat, saying it sends a message to the Japanese automaker that “our investments are not welcomed."
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SanJoseDriverSanJoseDriver - 5/19/2019 1:35:40 AM
-3 Boost
A trade war benefits no one, least of all consumers.


MDarringerMDarringer - 5/19/2019 9:05:23 AM
+5 Boost
That's an absolute statement and absolute statements are logical fallacies.


HolydudeHolydude - 5/27/2019 3:58:53 AM
+2 Boost
And the genius Matt responds to an absolute statement with an absolute statement, but hey, we don't expect much from rednecks.


SanJoseDriverSanJoseDriver - 5/27/2019 4:50:03 AM
+1 Boost
This one is pretty black and white.


TomMTomM - 5/19/2019 2:48:50 AM
0 Boost
An investment of that size would require at least a new plant - among other things. We have not seen them propose it - it takes more than a year to build - I do not see how they can live up to that investment in that time.

THankfully we can depend on the conservative free trading republicans to derail any attempt to cause a tariff war because - they would NEVER stand for it- after all it is CONGRESS that sets tariffs. Oh gee - where did "THEY" go.


MDarringerMDarringer - 5/19/2019 9:07:58 AM
+1 Boost
NO! $13B is the cost of two new platforms. A new Tundra is on the way. That's half of it. Toyota is no doubt going to do something electric. There's the other half.


MDarringerMDarringer - 5/19/2019 10:55:48 AM
0 Boost
The manufacturing-with-Mazda is a head scratcher given that Mazda seems in some ways sales proof. Now if the next 6 will be a reskinned Camry...


PUGPROUDPUGPROUD - 5/19/2019 5:48:06 AM
+6 Boost
Toyota is taking a page out of Trump's playbook by overstating its position before dialing back to reality and compromise. Both sides are playing a high stakes game of chicken. The US is Toyota's biggest and most important market that it must protect but cannot afford to loose. Building a plant in the US and sourcing more parts from US suppliers is an extremely efficient way for Toyota to prosper in the US. Trump plays hard ball to get the best deal he can and level the playing field. Lots of posturing on both sides but a deal will get done. Neither side can afford a global trade war. All it takes to do a deal is for one side to blink first and that will be the one who has the most to loose. Trump risks loosing the presidency but China risks loosing its form of government.


TruthyTruthy - 5/19/2019 6:00:48 PM
-6 Boost
Trump negotiates like he is buying a crap house. This is not how large trade deals are handled in the civilized world.
He has achieved nothing on trade nor foreign affairs with his BS posturing.


CANADIANCOMMENTSCANADIANCOMMENTS - 5/19/2019 9:35:33 AM
0 Boost
They can always build more Toyota cars and trucks in Canada...


CANADIANCOMMENTSCANADIANCOMMENTS - 5/19/2019 1:35:07 PM
0 Boost
This story is more specific, but it still does not outline where all that money is going. $13B USD over 5 years. Toyota employs 37,000 Americans at 10 plants across the USA. I would not want to offend or provoke them. They are not a problem for the US economy.

Toyota Increases Investment at U.S. Plants to $13B
Noria news wires
Tags: manufacturing
Toyota recently announced that it will exceed its 2017 pledge to invest $10 billion in its U.S. operations over five years with a new commitment to reach nearly $13 billion over the same period. Part of the commitment includes nearly $750 million in five different states, with more to come.
The new investments will consist of adding RAV4 Hybrid and Lexus ES 300h hybrid vehicle production to its manufacturing plant in Georgetown, Kentucky; expanding engine capacity at its facility in Huntsville, Alabama; doubling hybrid transaxle capacity at its plant in Buffalo, West Virginia; a building expansion for additional castings at the Bodine Aluminum’s facility in Jackson, Tennessee; and additional castings at its facility in Troy, Missouri.
“These latest investments represent even more examples of our long-term commitment to build where we sell,” said Jim Lentz, chief executive officer for Toyota Motor North America. “By boosting our U.S. manufacturing footprint, we can better serve our customers and dealers, and position our manufacturing plants for future success with more domestic capacity.”
In Alabama, Toyota’s investment will increase annual engine capacity from 670,000 to 900,000 by the end of 2021. New four-cylinder and V-6 engine lines will add 450 new jobs to the facility in Huntsville, Alabama, the largest hiring need in the plant’s history. The investment also includes a building expansion. Overall, the plant represents an investment of $1.2 billion.
Toyota’s Kentucky vehicle plant will begin production of the Lexus ES 300h hybrid in May 2019, with annual capacity of 12,000 units. RAV4 Hybrid production will start January 2020, with an annual capacity of 100,000 units. The plant’s 8,000 team members also build the Camry, Camry Hybrid, Avalon, Avalon Hybrid and Lexus ES models with an annual capacity of 550,000 vehicles. Overall, the plant represents an investment of more than $7 billion.
Investments in Toyota’s Bodine Aluminum plant in Missouri will provide equipment to produce an additional 864,000 cylinder heads for Toyota’s New Global Architecture (TNGA). Bodine’s 900 Missouri team members currently produce more than 3 million cylinder heads a year, which are made for every Toyota and Lexus manufactured in North America. Overall, the plant represents an investment of $455 million.
The Tennessee investment includes a building expansion and equipment to double the capacity of hybrid transaxle cases and housings to 240,000 annually. The investment will also provide equipment to produce an additional 288,000 engine blocks a year for TNGA. The plant’s 300 team members currently produce


Bach24Bach24 - 5/20/2019 10:39:20 AM
+2 Boost
Guess we have a bunch of Globalists here, including the esteemed Agent00R. Globalism is great...unless you're the United States of America. Everyone gets to dump their crap here and kill our industrial base in the process.

I keep reading about tariffs being a tax! Well, no not really. They can become tax-like if there is no substitute from some place else, but it seems like just about everything made in China is also made in Pakistan, or some other Third-World banana republic. The regressives and the NeoCons have no regard for this country and our shrinking middle-class.


HolydudeHolydude - 5/27/2019 3:56:31 AM
+2 Boost
It's great being a globalist, we get to see the world instead the insides of a trailer. Besides, the Republicans don't give a shit about the middle class, so why should anyone else?


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