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Why Doesn't Toyota USA Need A Bailout?
Nietzsche is Dead ^ | 12 Nov 08 | foutsc

Posted on 11/12/2008 11:41:02 AM PST by foutsc

So the Big Three are asking for a government handout... You should write your representatives and ask them this question:

Why are the Big Three going broke and asking for taxpayer money while Toyota USA is expanding?
Ford, GM and Chrysler have become as sclerotic as the liberal states that host them. Like the failed state of Michigan, the Big Three promised goodies to the masses and now they have the gall to ask the American taxpayer to fund their generosity. Note to nanny-state liberals (in government and on corporate boards): It's not generosity when you do it with other people's money!

If you want to get mad, go read this WSJ article about how GM pays people to not work. Speaker Pelosi is worried about excessive executive pay when she should be focusing on excessive executive stupidity.

So why isn't Toyota in trouble? Pro-union folks will tell you it's because down south they are able to exploit their workers. Well, maybe Detroit didn't exploit its workers, but it's now extorting money from the entire country as a reward. Despite what Democrats tell us, our nation does not have one uniform economic policy. Each state and locality employs distinct taxation, employment and business laws that affect employment rates and wages. We can study these various economies to learn what works and what doesn't. People in Illinois, Ohio and Michigan can tell you that things ain't workin' there. Is it President Bush's fault, or is it the fault of corruption, high taxation, and business unfriendly state governments?

Professor Phil Gramm points the finger at dysfunctional state governments:

Business conditions were better in the successful states than in the lagging ones. Capital and labor gravitated to where the burdens were smaller and the opportunities greater.

No one should let Michigan politicians blame their problems solely on the decline of the U.S. auto industry.

Yes, Michigan lost 83,000 auto manufacturing jobs during the past decade and a half, but more than 91,000 new auto manufacturing jobs sprung up in Alabama, Tennessee, Kentucky, Georgia, North Carolina, South Carolina, Virginia and Texas.

The facts show that soak the rich policies, over-regulation, and yes, overreaching unions, destroy jobs. States like Ohio and Michigan have only their failed liberal policies to blame. And the same can be said for the welfare queens who run the Big Three: They overpromised and undersold on pensions and benefits. You can pile the goodies sky high, but somebody has to pay the bill. Toyota knows this, as does Texas, Tennessee, and Florida.

Liberal Democrats and the press (but I repeat myself) will be trying to convince you otherwise. Arm yourself against their economic nonsense by going here and reading the entire article on state economies. I also recommend you read everything written by the erudite and highly entertaining economics professor Walter E. Williams. Here is a quote from his web site:

"We hang the petty thieves and appoint the great ones to public office." -- Aesop
Walter E. Williams home page: http://www.gmu.edu/departments/economics/wew/

Gramm Article on State Economieshttp://online.wsj.com/article/SB122126282034130461.html?mod=opinion_main_commentaries


TOPICS: Business/Economy; Government; Politics
KEYWORDS: aflcio; automakers; bailout; bho2008; bigthree; cardcheck; chicagomob; chrysler; congress; democrats; economy; environmentalists; ford; gm; hoffa; honda; michigan; nissan; obama; pelosi; reid; seiu; taxes; teamsters; toyota; uaw; unions
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1 posted on 11/12/2008 11:41:02 AM PST by foutsc

To: foutsc

Maybe because Toyota is run like a business instead of a socialist experiment?


2 posted on 11/12/2008 11:42:46 AM PST by antiRepublicrat

To: foutsc
UAW chief urges $25 bln in U.S. auto health care support (Union bailout-payback for $400,000,000)

http://www.freerepublic.com/focus/f-news/2127523/posts

Who's your DADDY Obama??

Youtube The One on Card Check
3 posted on 11/12/2008 11:43:31 AM PST by Fred (The Democrat Party is the Nadir of Nihilism and BO is a WHINING marxist)

To: foutsc

U-A-W


4 posted on 11/12/2008 11:43:58 AM PST by Petronski (Things fall apart, it's scientific.)

To: foutsc

The government isn’t bailing out the Big Three, it’s bailing out the UAW.


5 posted on 11/12/2008 11:44:22 AM PST by The_Victor (If all I want is a warm feeling, I should just wet my pants.)

To: foutsc

“Alabama, Tennessee, Kentucky, Georgia, North Carolina, South Carolina, Virginia and Texas”

If the Big Three want to rebuild themselves and make money, move to these states. Screw the Union states. Let them eat the handouts from the Democrats they keep on voting into their Statehouses!


6 posted on 11/12/2008 11:44:35 AM PST by The South Texan (The Drive By Media is America's worst enemy and American people don't know it.)

To: foutsc

And what about subaru???
setting all time sales records this year:

http://www.subaru.com/common/news/index.jsp?cat=corpsales

Im a proud driver of a 2007 Outback!


7 posted on 11/12/2008 11:44:43 AM PST by housedeep

To: foutsc

Recent TV ads mention a very plain looking little car, the Chevy Malibu, as being “affordable(TM)” at something like $25,000. Somebody needs to start living in the real world or something like that....


8 posted on 11/12/2008 11:44:57 AM PST by varmintman

To: foutsc

Why should tax money from Virginia, Alabama, Tennessee etc., go to prop up a failed business model in Detroit.


9 posted on 11/12/2008 11:45:56 AM PST by NavVet ( If you don't defend Conservatism in the Primaries, you won't have it to defend in November)

To: foutsc

I unofficially award you with Post of the Year.

The only post I can think of that was better was the one outting Dan Rather from Buckhead.

This succintly puts into perspective the act of sodomy about to be perpetrated on us by Congress.


10 posted on 11/12/2008 11:46:22 AM PST by RinaseaofDs

To: foutsc

Why does a Japanese company not need a US bailout?


11 posted on 11/12/2008 11:46:59 AM PST by allmost

To: foutsc

Each Big 3 autoworker costs $30 more per hour than those working for the foreign automakers building in the US. Most of that is retiree and pension benefits. The latest deal negotiated actually will bring labor costs for the Detroit companies in line with those of the foreign makers, but the deal does not take effect until 2010. IF the Big 3 make it to 2010, they will be able to compete on a level playing field for the first time with Toyota, Honda, etc.


12 posted on 11/12/2008 11:47:58 AM PST by Azzurri

To: RinaseaofDs
I unofficially award you with Post of the Year. The only post I can think of that was better was the one outting Dan Rather from Buckhead. This succintly puts into perspective the act of sodomy about to be perpetrated on us by Congress.

Thank you. And thank you for the graphic but accurate description of what is happening to us.

13 posted on 11/12/2008 11:48:49 AM PST by foutsc (Nietzsche is Dead)

To: foutsc

Maybe Toyota gives the driving public cars they (the public) want, not what Detroit says we should have ... quality too comes into the picture...


14 posted on 11/12/2008 11:49:24 AM PST by SkyDancer ("I Believe In The Law Until It Interferes With Justice")

To: allmost

Because some of those States listed are not States? You have me stumped.


15 posted on 11/12/2008 11:52:57 AM PST by 1rudeboy

To: 1rudeboy

Currency manipulation is commonplace in Asia. Not the entire cause, but a contributing factor here.


16 posted on 11/12/2008 11:56:55 AM PST by allmost

To: allmost

So how does currency manipulation in Asia affect Japanese auto makers in the U.S.? They pay in dollars, not yen.


17 posted on 11/12/2008 11:58:07 AM PST by 1rudeboy

To: The South Texan

You’re missing the plan.
Right to work will be eliminated.
Instant unionization will be implemented via card check.
Imports will be tariffed and regulated (heck they can say Reagan did that for Harley back in the 80s).

The unions spent hundreds of millions electing Democrats - and they expect a big payback in 2009.


18 posted on 11/12/2008 11:58:54 AM PST by nascarnation

To: foutsc

reference bump


19 posted on 11/12/2008 11:59:31 AM PST by NonValueAdded (Jimmah Carter cubed. Obama, the only man in America who can make Hillary Clinton look good.)

To: Azzurri
The so-called Big Three will not be able to compete with Toyota, Honda, etc. until their workers (the few who actually build cars) ditch the UAW and their stockholders demand a management team that has a clue about how to design, build, and market vehicles that people want to buy at a price that covers the full cost of producing them.
20 posted on 11/12/2008 12:00:54 PM PST by riverdawg

To: varmintman
Recent TV ads mention a very plain looking little car, the Chevy Malibu, as being “affordable(TM)” at something like $25,000. Somebody needs to start living in the real world or something like that....

Two years ago my sister bought a Toyota Yaris 4-door for $15,000. What a great little car. Nice solid feel when you drive it and the interior and exterior don't scream econobox. She loves the car, and especially loves the great gas milage.

21 posted on 11/12/2008 12:01:01 PM PST by 6SJ7 (Atlas Shrugged Mode: ON)

To: foutsc

Blame it on the Monopoly of labor The U-A-W...!!! Ms pelosi and reid failed to mention them yesterday!!


22 posted on 11/12/2008 12:01:23 PM PST by philly-d-kidder (The Phillies Parade was awesome!! Did I tell you Phillies are world champions!)

To: foutsc

Bttt


23 posted on 11/12/2008 12:02:48 PM PST by csvset

To: SkyDancer

I love it when Detroit touts a hybrid that gets 30 MPG, and my ‘07 Camry hybrid gets 33 in city and 40+ on highway. I am interested in seeing what that new Fusion hybrid ends up getting. My Camry will run all electric @ 45 or less - I hear the Ford will do it at 47 so should be better (they have one as the pace care at Homestead this weekend). I’m really interested in what comes of the Ford-Volvo work into electromagnetic wheels (est. 165 MPG) where a small efficient gas motor keeps the battery pumped up.


24 posted on 11/12/2008 12:03:09 PM PST by OrioleFan (Republicans believe every day is the 4th of July, democrats believe every day is April 15)

To: 1rudeboy

Their currency is undervalued. This is no secret. The governments do it intentionally to promote exports. If one Dollar equals 2x yen then they make twice as much profit.


25 posted on 11/12/2008 12:05:03 PM PST by allmost

To: foutsc

Maybe because they have a superior product? Where it goes and goes as long as you change the oil??


26 posted on 11/12/2008 12:06:18 PM PST by browniexyz

To: housedeep
Im a proud driver of a 2007 Outback!

And I'll bet you complain about US businesses going overseas.

27 posted on 11/12/2008 12:07:55 PM PST by Travis T. OJustice (Change is not a destination, just as hope is not a strategy.)

To: foutsc
28 posted on 11/12/2008 12:07:58 PM PST by M. Dodge Thomas

To: housedeep
And what about subaru??? setting all time sales records this year: Im a proud driver of a 2007 Outback!

I wouldn't be so proud of that one...Subaru is the car of choice for the left-wing whackjobs and homosexual community, in California at least!

29 posted on 11/12/2008 12:10:01 PM PST by Azzurri

To: foutsc

The Toyota plant here in Texas shut down for 90 days and just now started back up. They only restarted one of two lines, however.


30 posted on 11/12/2008 12:11:56 PM PST by red-dawg (Bend over for CHANGE.)

To: allmost

Hello? We are talking about Japanese auto plants here in the U.S., making cars that you buy with U.S. dollars.


31 posted on 11/12/2008 12:12:17 PM PST by 1rudeboy

To: OrioleFan

Heard/read that those hybrids get worse gas mileage when running the gas engine - they factor in the total MPG with the electric motor ... not fair ....


32 posted on 11/12/2008 12:12:38 PM PST by SkyDancer ("I Believe In The Law Until It Interferes With Justice")

To: 1rudeboy

You think this a US company? The forex deal is a major player here. The auto unions should be downsized in the US but to blame it entirely on them is not accurate.


33 posted on 11/12/2008 12:15:50 PM PST by allmost

To: 1rudeboy

Not you blaming the unions, just a general point. My apologies.


34 posted on 11/12/2008 12:17:21 PM PST by allmost

To: The South Texan

You can add Mississippi to that list of states.


35 posted on 11/12/2008 12:19:01 PM PST by Red_Devil 232 (VietVet - USMC All Ready On The Right? All Ready On The Left? All Ready On The Firing Line!)

To: allmost

In fact, one of the primary reasons manufacturers locate overseas is to avoid “dealing” with the foreign exchange rate, so I don’t think you fully comprehend how things work.


36 posted on 11/12/2008 12:19:09 PM PST by 1rudeboy

To: 1rudeboy

It’s cheaper for a Japanese company. Like I said.


37 posted on 11/12/2008 12:20:30 PM PST by allmost

To: allmost

No worries. I should clarify also that the Toyota Yaris (I think) is imported, whereas the Camry is not . . . so there is some of a foreign exchange factor.


38 posted on 11/12/2008 12:21:43 PM PST by 1rudeboy

To: foutsc


Volkswagen to build cars in the US, too!
39 posted on 11/12/2008 12:21:44 PM PST by wolf78

To: Azzurri

ha ha

Yes, I know I drive a lefty-mobile.


40 posted on 11/12/2008 12:25:40 PM PST by housedeep

To: Red_Devil 232

Yes, my Nissan Pro4X pickup was built in MS. I love it and this after driving Fords for most of my adult life!


41 posted on 11/12/2008 12:27:08 PM PST by Man from Oz

To: allmost
I'll also note that, in order to promote exports, the Japanese government must (allegedly) keep the yen cheap. This makes it more expensive for a company such as Toyota to build in the United States--if you follow the idea through to its conclusion.

So it's not just cheaper, it's also more expensive.

The operative fact (in the U.S.) is that a company such as Toyota can produce a car with fewer man-hours (unionized or not) than its U.S. counterpart. There is your advantage . . . the exchange rate for the currency is just a smokescreen.

42 posted on 11/12/2008 12:27:09 PM PST by 1rudeboy

To: 6SJ7

My neighbor has a Yaris.
Honestly, I don’t think it would survive a collision with my Wheel Horse garden tractor.


43 posted on 11/12/2008 12:27:11 PM PST by nascarnation

To: 1rudeboy

The unions outlived their purpose decades ago. You seem very intelligent and I’m not sure how to react when you dismiss the exchange rate.


44 posted on 11/12/2008 12:30:25 PM PST by allmost

To: allmost
Currency manipulation is commonplace in Asia. Not the entire cause, but a contributing factor here.

A cheaper Yen makes their purchases in Yen more expensive. How does that help their US operations?

45 posted on 11/12/2008 12:30:30 PM PST by Toddsterpatriot (Do you remember when blue was a feeling, gray was a word and one was a number...)

To: allmost
It’s cheaper for a Japanese company. Like I said.

Math was hard for you in school. LOL!

46 posted on 11/12/2008 12:32:05 PM PST by Toddsterpatriot (Do you remember when blue was a feeling, gray was a word and one was a number...)

To: allmost

I’m not dismissing exchange-rate fluctuations, mind you . . . I just haven’t seen much evidence that the Japanese are manipulating their currency to the point where you see what you think you’re seeing. The Chinese, on the other hand . . . .


47 posted on 11/12/2008 12:32:54 PM PST by 1rudeboy

To: Toddsterpatriot

So you and rightwhale are applauding the decades long tradition of currency manipulation? I must be misinterpreting something here.


48 posted on 11/12/2008 12:33:01 PM PST by allmost

To: Man from Oz
Yep! My next truck will be a MS built Nissan or TX built Toyota.
49 posted on 11/12/2008 12:33:39 PM PST by Red_Devil 232 (VietVet - USMC All Ready On The Right? All Ready On The Left? All Ready On The Firing Line!)

To: foutsc
Local Chevy-Pontiac-GMC store closed last week. moved units to other group store 20 miles away. It had been there since 70’s when Olds Cutlass was king.

Dealer Principal owns several franchises in NC including #1 Toyota store in state.

He can see GM is past point of return.

My Question is why is Chrysler in this silly proposal since they are a private owned company with ties into GMAC?

50 posted on 11/12/2008 12:33:43 PM PST by Eagle50AE (Pray for our Armed Forces. Go Palin 2012)


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