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Will we see a Toyota backlash?

A senior Toyota executive is concerned that there may indeed be a backlash over Toyota's success, which is coming at the expense of domestic brands.

"We are certainly concerned," said Toyota Senior Adviser Hiroshi Okuda. "We have never said Toyota wants to be No. 1, and we do not give such orders to our employees," said Okuda...
Sen. Debbie Stabenow, a Democrat representing Michigan, home to many "Big Three" autoworkers, has accused Tokyo of manipulating the yen.

"It creates big differences in what they can sell their automobiles for," she said recently. "Most of their vehicles are still coming from Japan."

In a letter last month to Treasury Secretary Henry Paulson, four House Democrats said the weakened yen had allowed Japanese automakers to increase their exports to the United States by more than 30 percent in 2006.

Rep. Sander Levin, a Michigan Democrat who leads the trade panel of the House Ways and Means Committee, plans to hold hearings on the undervalued yen and said he was considering legislation to address the inequities.

Full story here.

My blog-buddy Karl also recently posted a similar entry on Karl on Cars: Will Toyota Face a Backlash? Should it?

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10 Comments

estreka says:

10:45 AM, 03/14/07

The ¥ is indeed undervalued, but that's politics. I see no reason to hold Toyota accountable for it. I find it ironic that the reason we went to war with Japan in '41 was because we artificially raised oil prices. Kharma anyone?

mirth says:

12:23 PM, 03/14/07

There won't be a backlash. Most people don't care at all about the domestic automakers or the people who work for them. Or worse, they're actually rooting for them to fail. As a country, we should care that we are losing this manufacturing base, but we don't.

mopar424 says:

02:54 PM, 03/14/07

I dont know if I believe all the bs about Toyota 'manipulating' anything, but the truth is that we ARE importing more and more of their vehicles every year when we have the capacity to make our own right here. Yes, some foriegn cars are built here and makers like Toyota are quick to point that out, but most are not from here and all the profit goes back to Japan- we get little benefit from that.

estreka says:

03:30 PM, 03/14/07

Quite the contrary, Mopar. Toyota employs large quantities of Americans, whether directly or indirectly. Those employees get paid, in many cases, better than those in Detroit. The money that does go over to Japan is put into R&D and we reap the benefits here. It doesn't much matter where the machine is located. What is important is how well the machine runs.
And actually, if you want to talk about production, the Big 2 produce much of their vehicles in Canada and Mexico. That helps the US economy not a bit.

carlisimo says:

05:41 PM, 03/14/07

There's gotta be a better explanation than "profit goes here" or "profit goes there." I'd expect it to go proportionally to wherever the company's current costs and growth costs may be.

ateixeira says:

08:49 AM, 03/15/07

Lame conspiracy theory, at best.

trjnflip says:

12:03 PM, 03/15/07

Mopar: I worked for Honda R&D in Torrance, CA and the overwhelming majority of my coworkers (engineers, analysts, and designers, support staff) were local "Americans." At the Ohio R&D center, the majority again were Americans, many grew up and were educated in the midwest.
 
It's funny how many Big 3 supporters say how the foreign carmakers are stealing jobs away from Americans, when in fact they create jobs for many Americans.
 
To me, the origin of a brand's name doesn't affect my opinion of the company. It can be of Japanese, American, German heritage, but it's the final product that will win me over.
 
Unfortunately for many Domestic branded vehicles, they have been crappy in terms of reliability, durability and overall quality, which are very important to me. The Japanese branded vehicles excel in those areas and as a logical consumer, I will buy from a maker that focuses on those areas.

steve_ says:

08:36 PM, 03/16/07

Stabenow and Levin will have to fight their fellow senators and representatives from Texas, Alabama, California, Kentucky, Indiana, West Virginia and now Mississippi if they want to try to rein Toyota in politically. Toyota has factories in all those states (the Cali plant is a joint venture with GM, and the Tupelo factory was just announced).
  
There's a reason why Toyota isn't building all their US plants in, say, Delaware. They get cheap political lobbying spreading the wages around.
  
And it's no longer the "Big 3" - now it's the "Detroit 3."

hondacura4 says:

04:31 PM, 03/18/07

I live about 20 miles south of the plant here in Georgetown, Ky. I have several family members (cousins and thier spouses) that are production workers there and they make a VERY good living. I know that some of them easily make over $70K a year with overtime and large bonuses.
 
To get a better Idea of the area, you can live in central Ky with a salary of say....... $45K and live a pretty decent life. If you could have seen Georgetown in the early 80's before Toyota came and compared it to how it is today you wouldnt think its the same place. The city has nearly grown 10 times the size it was 20 years ago and thats certainly positive. They also donate to a vast amount charities and sponsor a lot of community functions, so its not all about Japan.
 
My father is a product planner for Toyota/Lexus and his office is in Erlanger, Ky near the Ohio/Ky border. If it wasnt for his salary, I as well as my brother (soon to be architect) and sister (RN) would have been forced to take out student loans. Toyota has directly/indirectly made my life better as well as some family members. So in the end, if its Japanese, German, African or whatver, if it makes the quality of life better then its good.
 
P.S. I still prefer Honda vehicles...sorry dad!

jerrywimer says:

04:27 AM, 03/19/07

It's nice to hear how well your family members are doing working for Toyota. But trying to link the growth of Georgetown to Toyota is a bit of a stretch. Most urban areas of the country have grown by leaps and bounds over the same 20 year period that you're using as an example. Don't misunderstand me- the addition of factories producing goods for successful companies *does* play into it to, but not nearly to the extent that your post would have us believe! :P

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