Skip to comments.Why Doesn't Toyota USA Need A Bailout?
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: 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. Professor Phil Gramm points the finger at dysfunctional state governments:
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.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.
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.
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." -- AesopWalter 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
Maybe because Toyota is run like a business instead of a socialist experiment?
The government isn’t bailing out the Big Three, it’s bailing out the UAW.
“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!
And what about subaru???
setting all time sales records this year:
Im a proud driver of a 2007 Outback!
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....
Why should tax money from Virginia, Alabama, Tennessee etc., go to prop up a failed business model in Detroit.
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.
Why does a Japanese company not need a US bailout?
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.
Thank you. And thank you for the graphic but accurate description of what is happening to us.
Maybe Toyota gives the driving public cars they (the public) want, not what Detroit says we should have ... quality too comes into the picture...
Because some of those States listed are not States? You have me stumped.
Currency manipulation is commonplace in Asia. Not the entire cause, but a contributing factor here.
So how does currency manipulation in Asia affect Japanese auto makers in the U.S.? They pay in dollars, not yen.
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.
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.
Blame it on the Monopoly of labor The U-A-W...!!! Ms pelosi and reid failed to mention them yesterday!!
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.
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.
Maybe because they have a superior product? Where it goes and goes as long as you change the oil??
And I'll bet you complain about US businesses going overseas.
In a nutshell:
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!
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.
Hello? We are talking about Japanese auto plants here in the U.S., making cars that you buy with U.S. dollars.
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 ....
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.
Not you blaming the unions, just a general point. My apologies.
You can add Mississippi to that list of states.
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.
It’s cheaper for a Japanese company. Like I said.
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.
Yes, I know I drive a lefty-mobile.
Yes, my Nissan Pro4X pickup was built in MS. I love it and this after driving Fords for most of my adult life!
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.
My neighbor has a Yaris.
Honestly, I don’t think it would survive a collision with my Wheel Horse garden tractor.
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.
A cheaper Yen makes their purchases in Yen more expensive. How does that help their US operations?
Math was hard for you in school. LOL!
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 . . . .
So you and rightwhale are applauding the decades long tradition of currency manipulation? I must be misinterpreting something here.
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?
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