This isn't true. I'll let you do the research on what happens to the $$$ from the domestically produced cars. Hint: It doesn't go into an offshore accounts.

American multinats don't repatriate profits earned overseas so they don't have to pay taxes. It makes much more sense to to keep it in an offshore account. A temporary tax holiday was created by a law passed last October called the American Jobs Creation Act to encourage bringing the money back in the country, so maybe things will change.

The way you believe it is happening is that way it maybe should, but in reality the exact opposite is occuring.

Why do the Japanese build cars here?

1) Cheap labor. Despite the comparative advantage the Japanese have had in automobile manufacturing for 20+ years, the dollar has become so depressed overseas that it's cheaper to build the cars in America. In America, the philosophy was vertical integration, as quick as possible. Build all the parts to the car as close to one spot as possible to drive down xportation costs. We're damn good at it too. The Japanese on the other hand concentrate on all the inputs (labor, materials, taxes, xportation costs, etc) to decide where/how to produce a part. The result is a car built all over creation and assembled in one spot. As technology has improved over the years this model increased in efficiency out of the pacific rim and across the globe. Now, the cheapest place to build those cars out of all those parts built all over creation is in the U.S. because the dollar is worthless over seas.

2) Capitalism and Nationalism don't mix. Toyota isn't loyal to Japan; it's loyal to it's stockholders. If Toyota makes a decision that is not in the best interests of it's stockholders it's an instant lawsuit. Think of it this way; the average Japanese guy couldn't care less about nascar. They're all formula 1 and ralley. Why NASCAR? To sell more cars in America--their best customer. The only loyalty is to the profit margin.

I'm really curious if Toyota can pull it off. Generally speaking, a new car is good for about 3, maybe 4 years in Japan before you're embarassed to drive it (seriously!). Government safety inspections become expensive and tedious enough to warrant trading in your car and there isn't really a used car market there. They ship the cars out to south-east asia, Australia and other places.

My point is--could they really build a car that durable???

-Fatz

 

the USD has only become weak in tha past few years (as a result of the ballooning deficit) It was quite strong when the Japanese planst were first built.

Also, if the Japanese Yen is pegged to the USD, it still wont impact the importation of goods from Japan.

I do agree that the economy benefits when local labor is hired, but there is still the issue of profits and shareholder value going back to Japan.

 

AMEN!

 

i guess the moral of all this is America isnt really america no more?

 

i thought the moral was "stock cars should look like stock cars"

but I could be wrong

 

there is nothing stock about a stock car..

 

It all statred when they let Dodge back in, they're made in MEXICO

 

Ford F-150 has part's made in Mexico......Leaf spring's, electrical relay's...

 

Actually, the US dollar has been comparatively weak against the yen since the early 1980s. It's gone up and down over the years, but the dollar has always been 'cheaper' than the yen. For the most part this was intentional, though the dollar had to be propped up once in the late 80s/early 90s. Whatever the case, US exports are cheap overseas--and imports expensive.

The yen isn't pegged to the US dollar (well--since sometime in the late 60s IIRC). Maybe something happened I didn't hear about, but as far as I know it's floating on the currency market like the dollar is.

I don't know how the Japanese tax structure is set up so I can't say that Toyota USA profits aren't repatriated to Toyota Japan, but I doubt it. Generally speaking, multinational companies don't send money back home for lots of reasons, the biggest being taxes. American companies don't do it, I doubt Japanese companies do it either.

There's no real controversy here. The only thing different between Toyota, Ford, GM and Chrysler is the name. There's so much cross over you'll find vehicles from traditionally domestic companies with more foreign content than a traditionally foreign company.

-Fatz

 

no it is not


too many goodietooshoes in this country

ever been to disney? or universal?

speak english and YOUR the minority

dont get me going

a fuse will blow


aaaaaaaahhhhhhhhhhhhhhhhhhhhh!!!!!!!!!!!!!!!!!!!!




...zap!