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Mindful Musings

Thoughts on the car biz from a former car girl.

Jul 15, 2007 - Bored With The Toyota Board!

I can't believe I feel this way. I have been a big fan of Toyota for over 30 years but I've had ENOUGH ALREADY!! I'm really questionning all the Toyota hype.

So please tell me...if it is so much cheaper to build cars overseas and import them in to the US, why are import auto companies building plants here? Particularly in the case of Toyota, it does not seem like it would make economic sense for them to build a state-of-the-art, 2,000-acre, $1.3-billion facility which is capable of pumping out 200,000 Tundras per year in San Antonio, TX.

Of course, we have all heard Toyota doesn't care whether they are #1 in global auto production or #1 in US car sales and that they are an AMERICAN company. In my opinion, this is the biggest bunch of propaganda any corporation could publish. I think being #1 is clearly what Toyota is going for whether it is a spoken or an UNSPOKEN corporate goal.


And Toyota is a Japanese company! After 50 years of selling cars in the US, they have only ONE non-Japanese person on their 30-member Board of Directors--an American man who married an Asian woman a few months before he was approved to sit on their board.

I know very little about economics and have never followed politics very closely. But--is it possible that Toyota is using financial gains they have reaped over the years due to a weaker yen to "buy" the American consumer through their spending on advertising, pricing, and incentives and on politicians i.e. Governors, Senators, Congressmen and Mayors, by building plants in strategic cities and states? In so doing, they ensure their US car and truck sales, solidify their #1 spot globally, and perpetuate the perception that they are an American company. Could it be possible that the appointment of an American to the Toyota Board of Directors was done to perpetuate the perception that they are an American company?  And my final question is:  Does the Toyota stockholder really give a you-know-what about all of this?


1:37 pm | Categories: toyota
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Comments
mishaa - Jan 6, 2008 9:07 am
Wow what a rant! Being a cosmopolitan as I am, I don't give a "you-know-what" about all this strategic games in the corporate world. What matters though is what cars Toyota makes, and they produce boring but very solid and reliable cars - and I believe this perfectly matches the demand of American market...
oldguy70 - Aug 4, 2007 8:20 am
To answer your question "why are import auto companies building plants here?" Mainly because of US and Canadian trade agreements, offshore automakers are obliged to adhere to. Tariffs for the offshore automakers are structured so it's less costly to build them here than pay the import tariffs. These trade agreements also stipulate that in order for offshore automakers to do business here, they must manufacture a certain percentage of them within our respective borders.
prlady1 - Jul 16, 2007 11:28 am
What may be most interesting about Toyota right now is that they went from hardly offering any incentives to now spending over $1300 per car. (See http://www.edmunds.com/help/about/press/121531/article.html for more data on this.) Toyota is famous for successfully managing their supply and demand very carefully, so this is not likely to be a resolution for overproduction the way many domestic incentives are.
Sylvia - Jul 15, 2007 5:47 pm
I think it has something to do with wanting to root for the underdog. While I enjoy Toyota quality and think the Prius was revolutionary...they're all plain. There's no sizzle. With a name like Toyota, I don't think anyone in the US will see them as 'American'. I'm putting a few nickels on Saturn...
karens - Jul 15, 2007 3:34 pm
I think there are a lot of other people that are asking these same questions.
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