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9
Do Japan and South Korea erect “immense barriers” to keep down parts and vehicle exports from the United States?
MidEngine
submitted on 09/29/2007
Official AutoSpies Timestamp: 10:05 PM
from: www.nytimes.com
[10] user comments
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Tags: Imports Exports Transplants Trade Barrier
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Imports Exports Transplants Trade Barrier
Do Japan and South Korea erect “immense barriers” to keep down parts and vehicle exports from the United States?
But now Chrysler and General Motors are already either importing vehicles from Europe, China and Australia for sale as American models, or arranging to do so, making labor costs at home less relevant.
Such trends do not sit well with Alan Tonelson, a research fellow at the United States Business and Industry Council, which favors tariffs. He argues that the Big Three lift the rest of the national economy more than the transplants do. Specifically, he says, nearly every study shows that vehicles manufactured here by G.M., Ford and Chrysler contain a “considerably higher” percentage of American-made parts than cars rolling off the lines at the transplants.
Senator Carl Levin, a Michigan Democrat, is also vexed. Citing Census Bureau data and his staff’s calculations, Mr. Levin argues that “immense barriers” erected by Japan and South Korea keep down vehicle exports from the United States to those countries. Car, truck and parts imports from Japan, for example, reached $60.2 billion last year, he said, while similar exports to Japan from the United States were a tiny $2.3 billion. He put the Korean imbalance at $12.4 billion versus $751 million.
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woood
- 9/29/2007 11:37:43 PM
-1 Boost
The koreans and japanese know that american made parts suck big time! Thats why they use their own developed parts from their own countries.
reply to this comment
enthusiastx11
- 9/30/2007 2:41:14 AM
+2 Boost
a valiant attempt at patriotism.
so why do you buy only japanese products?
reply to this comment
gforce
- 9/30/2007 11:15:31 AM
+3 Boost
hey wooow,
Morons like you, who cannot sight a "real" answer, always revert back to the old "American" sucks campaign. Based on your profound answer I'm sure you'll agree whatever you do for a living doesn't stack up against your Asian counterpart. Come to think about it....you probably looked into the mirror before posting your stupid comment. Not all Americans suck like you (I wouldn't employ your sorry ass).
have a nice day...jackass
reply to this comment
cdoke
- 9/30/2007 11:29:28 AM
View My AgentSpace
+2 Boost
These "immense barriers" aren't just to market entry and they are a natural result of something quite different- many asian countries view their largest businesses as a mechanism of policy.
Japan and Korea are notoriously protective of their pride industries. Their domestic automotive industries are such industries.
These industries are, by virtue of their size and economic power, utilized by the government as a policy and plannng tool. Toyota is essentially a state run business- the goverment tells it, largely, the general plans it is to have. The same goes for the heavy industry companies in Korea such as Hyundai.
These things are of the first things you find out when you do an IPE analysis of these countries.
reply to this comment
huu76
- 9/30/2007 9:38:13 PM
+2 Boost
Korea probably does. Japan I know has some restrictions, but even if they lifted the, I doubt there would be much demand aside from the American Super cars (Vette, Viper, Mustang).
Wonder if this guy noticed that US car manufacturing is moving offshore while Japanese manufacturing is coming onshore?
The weak greenback should help, actually, maybe not since the cars are made here.
reply to this comment
Boxx
- 10/1/2007 4:33:44 AM
-1 Boost
Korean and Japanese import tax are not higher, even similar to that of Europe.
Essential of this unbalanced situation is quite clear;
American cars are losing their competitiveness and regarded as a piece of crab.
Let the debate concentrate on main core, the car itself.
Blaming Korea and Japan is meaningless while Americans themselves don't buy big3 anymore.
reply to this comment
Boxx
- 10/1/2007 4:57:37 AM
-3 Boost
Let me add some reason why US cars have such wonderful marketshare in Korea/Japan domestic market.
1. Total neglect of consumer's need.
American car maufacturers have strange tendency to believe their local(US) taste will also fit to the rest of the world.
eg, too big not to fit in the parking lot or lack of optimal options, or too torquey setting, etc.
2. Terrible fuel efficiency
Remember; their gas price is 2~3times expensive than here.
3. Weird mechnism
eg, pushrod, OHV...
4. American style service mind which is relatively regarded as extremely poor or even rude.
5. Poor reliability.
Fix or repair daily; ford.
6. Marketing failure
spadog55
- 10/1/2007 11:31:24 PM
+2 Boost
Nicad lives in North Korea. Poor Fan girl...
reply to this comment
huu76
- 10/2/2007 1:18:20 AM
+1 Boost
Nicad,
MB bought Chrysler during Hilary Clinton's first two terms.
Also, I didn't see Hilary doing anything to reverse the Republican policies.
I agree though, national security has taken a back seat to corporate profits and greed. Hence my theory is we need a good war to put priorities back to where they should be.
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