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Toyota rise plus for U.S. economy
Detroit and Michigan are ground zero in terms of fallout from the decline of the U.S. automakers. The tax base is decreasing, municipal deficits are soaring and the United Auto Workers union is looking terminally ill.

But for the U.S. economy, the rise of non-U.S. automakers -- especially the new No. 1 -- has been, on balance, a positive. From 1986 to 2006, vehicle production in the United States beyond the Big Three domestic companies grew to 3.37 million from 426,000, while imports by those automakers to the United States have fallen to 2.55 million from 3.47 million, according to the Association of International Automobile Manufacturers, a trade group. U.S. production by Detroit makers shrank by 3.7 million in the same period.

GM, Ford and Chrysler employed 377,000 U.S. workers at the end of last year, compared with 95,000 employed by Toyota, Honda Motor Co. and other foreign automakers, according to the Automotive Policy Trade Council, a trade group.

Although comparisons are rough, the numbers imply that last year the U.S. automakers needed almost four times as many workers to build twice as many (6.84 million) vehicles as the foreign companies operating in the United States. The disparity hints at one of Detroit's ailments: bloat.

Of all the non-U.S. automakers, Toyota, Japan's biggest automaker, has most famously exemplified an efficient, disciplined approach to manufacturing, one that is studied and applied broadly by U.S. hospitals, libraries, automakers and businesses of all types. Read Article



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jon21jon21 - 4/27/2007 2:25:55 PM
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Good job Toyota!

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mp2dtwmp2dtw - 4/28/2007 1:46:47 PM
+1 BoostDrop the Boost Up the Boost
This is an absurd article. It includes the white collar workforce which for Ford, GM and Chrysler is mostly in the US. Not quite so for Honda, Toyota & Co. While I'd agree that GM and Ford seem to be having difficulty figuring out how to compete with Honda & Toyota, to blame this on the UAW as one response does is contrary to everything I've seen. Why would the workers want to put themselves out of a job? To insinuate that they do shows a level of arrogance rarely seen: Somehow the armchair quarterback is significantly smarter than the entire membership of the UAW.

The truth here is that Toyota and Honda are having their day, as did GM and Ford for decades in the 20th century. Toyota and Honda won't be kings of the hill for forever. The question is: Will GM and Ford be able to figure out how to take back the hill or will the Chinese and Indian auto industries do it?

To say that Toyota and foreign automakers have been good for the American economy ignores too many facts:
-Whose high-paying high-skilled (non-manufacturing) jobs are in the US & Canada? Ford, GM & Chrysler
-Who pays better? Ford, GM and Chrysler
-What entity in this equation enabled the American workforce to make the American economy such a powerhouse? The UAW

Yes, Detroit isn't doing very well at the moment. Those of us who live here (and are old enough) remember the recession of the late 70s/early 80s, which was far worse. Despite all the sneering and doomsday predictions, Detroit and the UAW will be fine and, as always, the rest of the country will benefit from it.

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toolatetoracetoolatetorace - 4/29/2007 11:28:06 PM
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the reason that the domestic employ almost 4 times as many workers is because they build the car from the ground up ie;manufactured , where as the imports are in esence assembly plants with most of the raw materials and components being manufactured overseas in their home countries

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huu76huu76 - 5/3/2007 12:26:51 AM
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mp,
Toyota/Honda pay the same rates as the UAW. However, they refuse to pay for healthcare for everyone in the the workers extended family.

tool,
Are you new?
Ford Fusion = Mexico
Chevy Suburban XL = Mexico
Cadillac Escalade EXT = Mexico
Chevy Optra etc = Korea
Pontiac Aztek (now some Buick) = Mexico
Chrysler 300/Magnum = Canada and China (I bet soon only China)
Equinox variants, engine = China, tranny = Japan

Camry, Avalon, Tundra, Sequoia, Corolla/Matrix, RX = N.America. Not sure about some of the others.
All Acuras/Hondas except the RL/TSX and probably S2000 are built in N.America.

The majority of their parts suppliers are domestic (i.e. F&P supplies Honda). Honda body panels are stamped in Hamilton.

The Japanese are showing the UAW how inefficient they are.

And yes, competition is good for everyone.

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huu76huu76 - 5/3/2007 8:21:45 PM
+1 BoostDrop the Boost Up the Boost
Sorry, not Cadillac EXT, I meant the ESV (the long one).

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