“Buy American Trucks” – Hypocrisy At It’s Finest
Jason Lancaster | Aug 28, 2009 | Comments 72
We’ve all heard someone say that you shouldn’t buy a Toyota because “all the profits go to Japan.” Talk about hypocrisy. People think it’s wrong to support a global car company that’s spent $20 billion building plants in the USA over the last 20 years, yet they willingly fork over their dollars to bankrupt GM and Chrysler so they can “buy American.”
Here’s a newsflash for all you “buy American” hypocrites: Toyota’s profits on one truck sale pale in comparison to the amount of money YOU send overseas every year. The fact is, we’re all sending thousands of dollars a year in profits to foreign companies – regardless of the type of vehicle in the driveway. Take a look:
First, let’s talk about the Tundra. If you buy a new Toyota Tundra for $30k, here’s where the money goes:
Toyota profit as a percentage of vehicle revenue.
The auto dealership keeps about 4%, or $1200. [NADA average dealership profile May 2009]. The people who ship the vehicle from the plant to the dealership pocket some money, there are some miscellaneous document fees, some gas to buy, etc., and we’ll say that stuff only costs $800 (the bulk of which is a destination charge). That leaves $28,000 in revenue for Toyota.
For argument’s sake, let’s ignore the fact that Toyota (like most automakers) lost a fortune last year and look at numbers from 2005 instead. Toyota earned $12.1 billion in profit in 2005, so let’s use those outrageously profitable numbers to figure out how much money could go overseas in a worst-case-for-America-best-case-for-Toyota situation.
According to Toyota’s 2005 financial report (see page 12), 10.8% of revenue went to general administrative and selling costs (i.e. marketing and advertising), 78.2% went to the actual production costs, and then another 4.7% went to miscellaneous expenses like interest payments, taxes, etc. In 2005 – the best year in the history of Toyota – only 6.3% of revenue was actually “profit.”
In other words, based on the best-case scenario $1,764 of our $30k Tundra is profit for Toyota…but really that’s only a guess. Toyota’s average numbers (as reported above) include every vehicle sold, from their super cheap micro cars sold in developing markets to their mega-expensive Lexus products. For the sake of argument, let’s go ahead and round our estimate up and say that Toyota makes $3000 on every Tundra they sell.
Now don’t tune out yet. According to Toyota’s most recent stockholder overview (shout out to commenter Brian for finding that link), 24% of Toyota stock is held by non-Japanese entities. 35% of Toyota stock is held by big banks – including JP Morgan Chase, State Street Bank, and Mellon New York. If we assume that about 20% of Toyota stock is held by American-owned companies (a guess, but it seems reasonable), then really only 80% of the profits go to Japan…20% comes back to US mutual funds and stockholders.
That means that a new Tundra – in the best Toyota sales year of all time – likely only nets Japan $2400. Considering that the average American buys a new car every 5-7 years, that’s about $400 per year that we send to Japan when we buy a new Tundra truck (give or take). Sound like a lot? Check this out:
The average American household spends more than $1200 a year on foreign-made electronics.
1) The average American household spends $1200+ on consumer electronics every year. We all know that few (if any) electronics are made in the USA, so a big chunk of that money definitely leaves and never comes back. For arguments sake, let’s say that half of that amount is captured by retailers in the US and that only $600 a year is sent overseas on consumer electronics…that’s more than a new Tundra.
bebe designer jeans retail for $99 (or more) and are made in Mexico
2) The average American household spends $1881/year on clothing and apparel (cool chart, btw). Much like electronics, almost no clothing is made in the USA. Some estimate that 97% of all clothing is made outside the US. If we assume only 30% of the amount spent on clothing goes overseas and never comes back, over 5 years the average American household sends more money overseas buying clothes (more than $2,800) than they would have sent buying a new Tundra.
3) The average American household spends $2,384 per year on gasoline and motor oil. Guess where oil comes from? Overseas. If we assume that only half of that expense goes to Venezuela, Mexico, Canada, Nigeria, Saudi Arabia, etc., after 5 years the average American household will have sent more than $6,000 overseas buying oil.
Toyota's San Antonio plant from the air.
4) Let’s go back to our Tundra profit figures. In 2007 Toyota (and affiliated suppliers) made a total investment in San Antonio of more than $1.2 billion (see timeline). How much profit is Toyota really making on the Tundra? The San Antonio plant has made somewhere between 300,000 and 350,000 trucks over the last 3.5 years…there’s no conceivable way that Toyota has recovered their $1.2 billion investment yet.
So here’s the bottom line:
1. People advocating that we should all “buy American” don’t understand global economics. If they did, they would recognize the problem isn’t with the Tundra…it’s with foreign oil and our society’s infatuation with consumer products we really don’t need (flat-screen TVs and designer jeans, for example).
2. Toyota is a global company. Despite the fact their name is Japanese, they make cars in the USA, they have US workers, and the Tundra is actually “more American” than the Dodge Ram or the Chevy Silverado.
3. A lot of the “buy American” sentiments are based on fear. Toyota isn’t bad for the U.S. economy – no company that builds 1.1 million cars and trucks in the USA is bad for America. If you want to call out Toyota because “all the profits go to Japan,” you need to call out yourself too.
Comments?
Filed Under: Auto News
I saw the bebe jeans ad and forgot what I was supposed to be reading! Good article, Jason. I agree that America has raped herself of the textile industry. The last Levi’s Jean Factory in the U.S. closed a few years ago (it was based in San Antonio, TX…wonder how many of those employees now work at TMMTX?). It is unfortunate that cheap labor overseas has forced American complanies to outsource jobs. So it is reassuring that in fact Toyota, a Japanese company, is actually CREATING jobs in America while most are laying off (NUMMI closure notwithstanding). However, I would have loved an analysis of how much profit from Ford, GM, and Fiat-Chrysler go overseas fora more complete comparison.
Great article. I couldnt agree more. It really is hypocrisy at its finest, and a waste of time whining and complaining when there is a lot of good that comes out of buying japanese!
Remember Pearl Harbor!
You hardly ever see a japanese drive an American car,why? because they support there country of origion!
Brian – Thanks man. What started out as a simple breakdown of some math from the link you gave me ended up being a 1000 word blog post – thank you. I like your idea of putting together one massive comparison too – especially if I factored % domestic content into the mix…
I feel the need to go buy more jeans.
Looks like Toyotas reinvestment back into America is more than modest. Toyota has a very large stake riding on Americas success as a market.
Jeremy: You are right, my friend! North American sales made Toyota the number one company in sales globally! Success or failure in America means success or failure globally. Just look at GM! Success in China, but failure in America = bankruptcy. Jeans anyone?
The more money we send ‘over seas’ the less we have in our economy for ourselves. think of it as two airtanks under water if we graudualy give air to one tank over the years the second will soon run low. Also if the air (money) is low there will be less and less hiring in America such as we see today. Our Economy has never been the same since the 50’s when made almost everything for ourselves and keeped the money in the US. A family could be supported from one job that a guy could get out of highschool. No more of that becuase our econmy is getting smaller every day, we can only print so many dollars before they all have no value.
Even more so, America is about FREEDOM, and that includes freedom to choose to drive whatever vehicle you want that is available for sale. America is about free markets and fair competition (however the gov’t has been known to hinder free markets). So I agree that it is totally American to buy a Tundra, or an Audi, or a Bentley or whatever the heck you, as a tax paying FREE AMERICAN decide that you want to buy. After all, if no one was buying foreign cars, the domestic manufacturers would have no reason to improve their products.
Very bad example. Let me fix that for you. You have 2 air tanks under water.
The American Tank and the Japanese tank. There are hundreds of air hoses some have no leaks, some have bad leaks. If I use the Tundra hose it puts 100 cfm worth of air into the tank but the hose leaks 6 cfm of that air into the Japanese tank. Whose air tank gets the bigger boost? Oh, btw, The Japanese tank put in 50 cfm of Japanese Tank air so that the tundra air hose could be built. Honestly, it is STILL a bad example but it is closer to reality.
The US Economy is shrinking due to many reasons but Foreign cars made in the USA is not one of them. The real economy runs on employed people and small businesses. If vehicle b is made by Americans who work…it boosts the economy. If car b is made by Mexicans with American made parts it is a a small boost due to the parts being made here but if domestic content is too low it could be a drain. If the car is made in JApan with Japanese parts by Japanese people and it is bought here it is a drain on our economy.
The Tundra is a boost to our economy.
Great article Jason! Keep it up.
I still feel as though I need more jeans. This is odd.
Edited for vulgarity and spelling
What you are failing, or choosing, (I can’t tell which yet), to understand is the the US Lawmakers from each individual state where these plants are built give HUGE tax breaks and incentives for the plant to be built there, in addition to the Federal Governments, already more than generous tax break and incentives to lure foreign companies to build in the US. It sickens me to see how the government is investing in foreign companies while it give NOTHING to the American Companies, if people would stop buying these crappy vehicles, we’d be back on the financial road to recovery in this country.
Another fine example of this type of unfair trade practice is the SBA, if you are considered a Minority, and have no collateral or subsistence to start a business the SBA will give you start up cash as well as the business loan, that is not available to average Joe American.
We need, as Citizens of this country, to get our heads out of our collective asses and take back America! If you’re not here legally, then go back and enter via the proper channels, if you have a criminal record and want to come to this country … SORRY DENIED!
And I agree with Brians first statement. I would love to see a “Where the Moneys Goes” comparison for the major automakers.
IF I can’t see that I would like to see the rest of the Bebe Jeans Ads. Large format. High Def.
Very good Jason. That about sums it up.
It is said as one would expect to see so many products MADE overseas and shipped INTO the USA. At least the Tundra is made in the USA unlike so many other vehicles like chevy silverado’s built in Mexico or Canada. I work for a very large mail order company part time and just 10 years ago the company and so many of the sub-companies spin offs of the main company made FOOD made right here in WI making up about 75% of their sales base. Now, about ONLY 20% of sales is FOOD based made right here in WI and surrounding US cities and ABOUT 80% sales/product is NON-FOOD and NOT MADE IN THE USA, BUT CHINA/INDONESIA/SINGAPORE/THAILAND, etc. and shipped to our building in WI to sell. If people stopped buying this crap that is so cheaply made and junk, then hopefully the food side would increase as it should since the food is good quality and the non-food clothing is crap that people must be buying because it sells and makes the company profitable. It turns my stomach that so much non-food overseas made product is selling so well here in the USA, but I guess without it, I would not have a job. It does not make me happy, but at least it is a job for what it is worth.
very few silverados are made in mexico the mojority are made in Flint Michiagin. Also even though the tundra is made in the US the price of the Tundra includes paying for the labor and is included in the price of the truck so it is not bringing money to the US in fact buying anthing foreign sends money out of our economy.
Correct me is I am wrong, but isn’t there a Federal excise tax on each new vehicle built? I think it is 23%. All American vehicle (not the Jap crap) taxes stay here in the U.S. But only 11.5 % of that tax stays in America for Jap,Korean,German, etc. vehicles. Even if built in the U.S. Thinking that the average price of a new vehicle is $23,000, then over $2600 for each import sold goes to their country of origin. Just think how much better the US would be if we all bot American vehicles only.
You’re not quite accurate. You’re referring to the so-called “chicken tax.” This deals with importing vehicles into the U.S. Frankly, this combined with the U.S. dollar rate is a big factor in importing/exporting vehicles. This is why the “Jap crap” is built in America and shipped to other countries. You did know that the Tundra and Tacoma are built in Texas right. And that the Toyota Sienna is built in Kentucky and shipped to South Korea.
Calling for a exclusionary buying boycott like the “Made in America” statement is really poor economics and is part of the problem not the solution.
-Tim
damikco – Crew cab Silverados are produced in Mexico and Canada while extended and regular cabs are produced in MI. The majority of non-contractorvehicles (personal trucks of which most people buy crew cabs to haul their kids, and what I would personally want to meet my needs) then would be assembled in Mexico or Canada. Buying a Tundra sends money out of our economy? Tell that to the 2,000 employees at TMMTX where all Tundras are produced, or the employees at Bodine aluminum where engine blocks, transimission housings, and other parts are made, or TMMAL where the engines are produced… See my point? Lots of American jobs, and Americans with jobs buy things in America which stimulates the American economy. How many Ford, Chevy, and Dodge engines/trannys are made outside U.S. borders? Here’s a look: http://www.gminsidenews.com/in.....gine_Guide and here http://www.gminsidenews.com/in.....rans_guide
Jason – thanks for the shout outs! Would love domestic content factored into the mix on a follow-up comparison! Check out this website: http://www.levelfieldinstitute.org/ Its pretty easy to blow holes in this website’s claims, but it might give you a look at how the other side views domestic Toyota/Honda/Nissan production. Like I said, it has TONS of inaccuracies on it. It is interesting nonetheless…
Damikco, repeating it doesn’t make it a fact. Let us test your method. The sky of a weasel. The sky is a weasel. The sky is a weasel. LEt’s go check…..NOPE…still blue. Wait….OH NO..BLUE WEASELS!!!!!
You are the definition of Epic Fail. The labor cost for the Tundra GOES TO AMERICANS. That is the point. Buy Hooked on Phonics and READ the facts. The fact that ANY of the silverados are made in Mex is a HUGE black mark against GM. I didn’t know GM was building the trucks outside the US. NONE of the Tundra’s are made outside the US and the Domestic parts content is HIGHER than the Silverado. MORE money stays HERE.
Damikco you still didn’t explain you have more foreign built parts than the Tundra. So again along with Mexico as a builder of your truck you have money going outside of the good ole USA. Now who is the hyprocrit? 30% of your parts are foreign. That with Mexico building some of your trucks how much do you think is going to a foreign country?
Damikco – Did you read the article? We show you exactly how much money leaves the USA as a result of one Tundra sale. They we show you that it’s less than most people send overseas buying electronics, clothing, and far less than what people send overseas buying gasoline. The point here is really simple: compared to what YOU AND I are doing everyday, buying a Tundra isn’t too bad.
Jason,. I have no idea where you got that pie chart from, but it is highly inaccurate compared to what I have found so far. I don’t know if someone is blowing smoke up your ass or not, but figures released by Honda and Toyota are highly adjusted to reflect more favorably on these foreign companies. As soon as I decipher the entire financial snare, I’ll be sure to post the truth here.
Truth Seeker,
Remember to look at the date when you do your research. This post was published with data from 2009.
Also, deleted your name calling. No reason for that.
-Tim
Thanks Mickey, Jeremy, Brian, and everyone else. As requested, I’ll start working on a big “where the dollars go” truck-to-truck comparison. It will take a little time to put together, but I think it will be fun.
One more thing – if you guys like this post, please bookmark it on Digg, Delicious, Stumble, and any other “social bookmarking” site you like to use. Feel free to start a thread on TundraTalk, TundraGeeks, TundraSolutions, or any other forum that you frequent. Anything you can do to boost readers will make it easier for me to devote more time to this site! Thanks!
Will do……………….
Don’t envy you in researching all that stuff. I’m sure we will get a great debate over it. Looking forward to it.
[…] banned. Well their lost not mine. Here’s a good scoop and we will be getting more info from Jason. Buy American Truck Argument is Hypocritical | Tundra Headquarters __________________ CREWMAX LIMITED MIDNIGHT RIDER 07 Crewmax Limited Nautical Blue AVS Bug […]
Thanks man! It’s fun, but it’s a killer on my time…not that I’m complaining! 😉
Jason, we all appreciate what you do. You rock!
[…] I’m Canadian so I no longer give a rats ass Ha ha ha ha, then you REALLY need to read this Buy American Truck Argument is Hypocritical | Tundra Headquarters __________________ 08 Super White 5.7L DC SR5 TRD 4×4 [Sig created by sxd45 @ ScreenFx] Mods: […]
Thank you!
Great article, as always, J! And great feedback from the posters. Another point to make on buying non-American….a lot of the food we eat is imported. There’s no reason we cannot have a global economy. Think of it as a 5-yr note on food at $30K total…..what’s worse? A Tundra or everyday food consumption?
Good call TXTee. I looked into produce, but I had a hard time finding concrete numbers…I would imagine that several hundred dollars a year go out the door of the average American home for fruits and vegetables grown on foreign soil, but I couldn’t find any evidence.
BUY AMERICAN KIWI FRUIT! and BANANAS. And Televisions! Doing anything else is a Socialistic evil murder to Lady Liberty.
HA HA AH HA
Couldn’t get it on Tundratalk.net. Got banned last week after being on there for 2 years and 10,000 posts. I will go on there if I have to under an alias.
[…] Your Tundra Here’s some great info on what, and where your money goes when you buy a Tundra. Buy American Truck Argument is Hypocritical | Tundra Headquarters __________________ MIDNIGHT RIDER CREWMAX LIMITED MIDNIGHT RIDER 07 Crewmax Limited Nautical […]
That’s sad that you were banned from TT. I can’t think of anyone I know of being banned here. Jason is more of a free speach and let ideas flow kinda guy. That is a good because I’m a Free mocking kinda commenter. If he started banning the idiot trolls my life would lose all meaning….from 9 to 11 most nights. To get banned here I think you would have to post a video of killing someone on the hood of a Tundra then write “Toyota Sucks” in their blood on the side of the truck. Nah, That would probably get the video removed, a stern warning, and a friendly visit from the local Police. 20 to life is close enough to banned.
There is but one true key to lasting success. If you find it, PLEASE let me know what it is.
Jason I guess they Un-Banned me so I got you covered on 8773 and on IBTO 8701.
Mickey – Awesome man – thanks for doing that.
Jeremy – I’m a let if fly kind of guy. Mark likes the crazyness too, but he doesn’t like to comment.
Jason you are getting great comments on this subject in both clubs. Alot of them in TT. No one actually knew about it so the comments are coming in. A few of them even printed it out to show their buddies who drive Ford’s and Chevy’s. So you know how that will go.
[…] Your Tundra Check out this website. The info is very good here. Buy American Truck Argument is Hypocritical | Tundra Headquarters __________________ AFE Stage II, Borla Pro XS, TRD Shifter, Tundra weather mats, Debadged, Backup […]
When I started reading this I was under the impression you were going to prove the profits of Tundra sales were not going to Japan. After reading this I’m now led to believe the profits of 6.3% do indeed go to Japan. Now I’m really confused. Does anyone know if Ford profits stay in the USA or do they go elsewhere?
Mickey – Thanks to your hard work a lot more people know about the post – thank you!
Chosuke – Two things. First, the 6.3% is a best-case figure. If you read the article again, you’ll see that it’s far more likely that buying a Tundra results in little or no profit for Toyota. Second, even if our best case estimate is correct (we rounded the 6.3% figure UP to more than 12%), it’s not that much money compared to the amount that a typical US family sends overseas every year. If it’s bad (and who’s to say), it’s not THAT bad.
Jason put it out on another Tundra club #8800.
Mickey – Good work man – thank you.
OK Jason, Thanks.
[…] tell him to check out this article. Remind him that a lot of his electronics support Asian markets. Buy American Truck Argument is Hypocritical | Tundra Headquarters __________________ 08 Super White 5.7L DC SR5 TRD 4×4 [Sig created by sxd45 @ ScreenFx] Mods: […]
[…] Originally Posted by DunesRunner08 at least if they are built in mexico the money filters back here when they sneak across the border… i dont see any japs swimming here for a better life and bringing money back here… ROFLMAO yes I am being sarcastic… sort of… LOL I thought this was interesting. Buy American Truck Argument is Hypocritical | Tundra Headquarters […]
Jason, they are at it again. Check this out from CNN.
http://money.cnn.com/2009/10/1.....tm?cnn=yes
Yes there it is – the Tundra being compared to the Chevy…and the Tundra has more domestic content. Weird! 🙂
You cant get mad because Toyota makes a great all around truck! Everything about the IFORCE is amazing. Its just as Econimical as a Ford F 150 with the 5.4, but has a 5.7! Toyota’s last forever. I still have my 92 4 runner with 385000 miles and it dont miss a beat. I have owned a F150, Ram 1500, and a Sierra 1500. They all let me down. weather it was the Triton V8 or the Vortec.
And before you start talking about giving other countrys more money, think about where fords and chevys, and dodges are built. Yes, Manufactured in the US, but where do they get there forged metals?, there plastics?, just about everything on those trucks are made from parts which were made in other countries.
I’m just dropping something to think about. When I got out of the Army in’68 I went to work for a new dealership in my hometown a car company called “Toyota” . It was interesting when the first auto came in and we got a good look at them. The first one was a Corolla neat little hemi-head motor but the body was a little bit weak. The big surprise was the interior It had plastic over the seats like you get your dry-cleaning in. I thouht the covering was thick than the vinyl fabric on the seats. And I look at the floor and said to boss where is the carpeting. His answer was, “in the trunk you snap-it in to place”. The rug was thin a cracker I just shook my head and the boss just laughed.
Great little car and the Landcrusier was something I would still love to own. But all this comes down to people’s reaction. We couldn’t get people to even try them cause everyone told us the Japanese just make junk.
Now, I see people who won’t even try an American brand name because American just make junk. And I just shake my head and laugh because it just as stupid as it was in 1968.
t
Robert – Agreed. Every truck available is worthy of consideration…regardless of where it was made, who designed it, etc.
All that is a smokescreen…the simple fact is that if stopped imports from Japan, the same plants would be making American cars for Americans and all the profits would stay here. Without the American consumer, Japanese automakers are virtually dead in the water and still American politicians allow unfair trade practices that allow Japan to ship their product here without taking the same volumes back. Made here? Sop what, you are allowing the enemy to assemble the very product that hurts America in our own country. All other products? Not a part of the argument since the electronics industry has very few American alternatives while domestic auto manufacturers provide plenty. You, like all traitors, just look for a way to justify your backstabing your own nation.
ALL of the money except for a small amount in dealer revenue goes back to Toyota and Japan. Your pie chart means jack squat because all the money that is not profit pays for designing, testing, admin costs, etc…It still gives Toyota?Japan the money. If America stopped selling Toyotas it would not hurt our economy one bit but would virtually destroy Toyota because China and India can’t keep it profitable. Up until the 70’s over 90% of what was used here was manufactured here, now it is just the opposite because of people like you who will sell out there own in the name of convenience and a dollar.
Mike you are a TRUE American, all these other nonloyal Americans turn my stomach reading their praise of Japan’s success in MY country. Toyota is Japanese no matter where they are assembled they will never be American. Our vehicle are our second biggest purchase and when you make that purchase with another country how do you expect the economy to rebuild? Foreign car owners equal nonloyal Americans. I wish these people would follow their money and leave America for LOYAL Americans. your are so right also they are all a bunch of SELLOUTS and turned there back on Detroit and face Japan now.
Mike – You’ve said so many things that are patently absurd that I don’t know where to start. However, since this is always fun:
1. If we stopped imports from Japan, our country wouldn’t be a free market democracy anymore, would it?
2. Japanese automakers like Toyota, Nissan, Mitsu, Suzuki, etc. are all successful in Japan and have a strong presence in most automotive markets in the world. If you ever travel outside the USA, you would know that first hand. To say that Japanese automakers would be “dead in the water” is laughable.
3. So I’m a traitor if I buy a car made in a foreign country? What if I buy a car with an engine made in a foreign country? Or what if I buy a car where 50% is made in the US and the rest isn’t? Am I a traitor in those cases too? Because, if so, than anyone driving a Ford, GM, or Chrysler-Fiat product is a traitor, as all of those vehicles have major components built in Mexico.
4. Design, admin, and a lot of the overhead does come out of Japan no doubt. However, Toyota built a $1.2 billion assembly plant in Texas to build Tundras and Tacomas – if you take that total capital outlay and divide it by the number of trucks sold, you quickly see that Toyota has invested far more in the USA than you give them credit for. Indeed, good estimates of labor and factory costs say that they account for nearly 60% of the cost of any car…the point being, if I buy a Tundra, most of the money stays in the USA.
5. So I’m “selling out” if I don’t buy the product you want me to buy? What if I don’t vote your way or believe in the same religion as you – am I a sell out too?
You advocate fascism, and that’s not what America is all about.
He advocates LOYALTY wich is something you could never understand. Japan is laughing at us you moron, please leave our country and go to the country you are defending cause its not the American way you are defending, you are defending the reasons you sold out to Japan. It’s obvious you are a toyota employee. I bet you have my American flag on your Japanese car. Please dont celebrate the fourth of July that holiday is for true Americans who support American companies and want ALL of ther money to stay here in our backyard. So go and fly your white and red dot flag you people turn my stomach
So let me get this straight: I’m not “American” unless I buy the cars you want me to buy.
Follow-up: how do you define freedom? Is it “people are free to do whatever they want, unless it involves buying a Toyota?”
You’re ridiculous, and your sentiments are neither accurate or logical.
AMEN Brother … AMEN! BE AMERICAN, BUY AMERICAN!
Being as I have been retired/unemployed for the last year and with a very limited income. I have had to revisit my thoughts on the global economy. I bought a 2013 Tacoma Prerunner doublecab (an excellent truck for my needs) and I was glad to, especially, when I found out they were made in San Antonio. I supported American laborers and they are working, earning an income and so are buying things thereby allowing others to work, earn and buy things and so forth. (keeping people working) Money is not stagnant it causes commerce to happen. While foreign companies depending on government tax laws may be bringing profits back to their home country, that is not always the case. Tax laws can do nasty things to companies and their employees. For example currently American tax rates for US companies are so high that any profits made on business overseas stay outside of the US due to the those rates. That is one of the reasons so many US companies keep expanding overseas.
Your A Moron if you beleive this crap!, the fact of the matter is, I’ve been searching for the last 6 months and still do not hav a definitive answer on exactly how much of Toyota North America’s profits are staying in the US and how much are going back to Japan. I can tell you that Toyota North America is a Wholly owned subsidiary of Toyota, and not an American owned company, as some may suggest. Get your head out of your asses and buy American Products, if the American Companies go under and belly up, we will be a slave to Japan China and Korea, we already are borrowing billions of dollars from China that may put us in the pocket of china already, but I am not ready to givr up yet, I beleive there is still hope for America to come back as a Strong Manufacturer, and not subside to the role of simply a consumer nation. BE AMERICAN … BUY AMERICAN
Interesting. You do realize that there are only two “American” automakers anymore, right Ford and GM. And since both of these companies are Global companies, their profits don’t just stay in the U.S. much like Toyota’s, Honda’s, Nissan’s, hell anybody and everybody.
Protectionism economic practices are detrimental to all economies which is why every smart economist and financial advisers (see: people who know their stuff) suggest we reduce our importing costs and so-called chicken taxes to increase the amount of foreign companies and investors. This in turn creates more jobs with a more free capitalistic economy. Realize that historically China was a protectionist nation that suffered for long periods of time, it was only when they opened their borders has their economy grown. Same thing will happen with the U.S. They more we buy American and close our borders the more our economy will shrink and our workers will lose jobs.
As the Made in America argument has floundered, so to will the “profits go to Japan” argument. For examples of Toyota’s profits being spent: look at the Cars for Good program, the San Antonio, Texas/Bexar County plant that employs Americans, the exportation of the Toyota Sienna van from Kentucky to South Korea, the Endeavor project that continues to fund science education in California – to name a few.
-Tim
Edited for vulgarity and spelling
Yes Ford and Chevy produce cars Globally, but that only bolsters their profits. In Australia, for example, Chevrolet produces a vehicle available only in Australia called the Holden, it is the number one selling vehicle in Australia. Speaking only of the profit margin, 62% of the profit returns to American Chevrolet, the parent Company. If you believe that the Japanese, Korean and Chinese car companies are doing the same thing, you’re an Idiot! Anything less would be ridiculous, if a company is making less than 50% of the profit from a subsidiary, this is considered failure and will eventually lead to the closing of that sub.
I get it, you drive Prius, but you want to justify the fact that you look like a (wimp) for the “global” economy! Well, here’s a hint, you better learn Chinese and Japanese, and teach your children, because they are destroying our economic substructure right out from underneath us, and its (WIMPS) like you that are helping them to defeat the American way of life and the ideals and principles this country was founded on. I bet you think we should all learn to speak Spanish too, so that we can communicate effectively with the illegal immigrants that come to this country and acquire fraudulent Identities stolen from Hard Working Americans and then proceed to wreak havoc on their lives and cost them money to fix the problem, while the illegal moves on to the next victim, and changes Identity. Give me a break, you should move to another country, because with your limp (wimp) attitude, you certainly do not support AMERICA!
Well, after editing your comment for a TON of English grammar errors, I can see your concern about learning another language. And no, I don’t drive a Prius.
If you look at the economic numbers, your argument doesn’t hold weight. American manufacturing is up for the first time in decades. Jobs are being brought back from China (see: Apple) and the fears of losing additional jobs to overseas company isn’t nearly as strong as it used to be. The global tenets of a world-wide economy hold true, in that the jobs that went overseas, they are now coming back due to those economies improving. Also, changes in the U.S. dollar and lessening of our import/export tariffs leads to situations like Toyota exporting a van made in Kentucky to South Korea. Imagine what the Japanese auto workers think when ships carrying U.S. built cars pass by them.
For what it is worth, I grew up in Michigan and my family worked in the auto industry. So, I have just a bit of knowledge about this industry. GM, Chrysler and Ford to a lesser degree have done a poor job of adapting to a changing North American buying market. Now that they are making those changes, we will see a rebirth in the “Big 3.” However, they are all currently losing billions in Europe and until that changes, I don’t see them posting big profits.
Do I want to see Ford, Chrysler/Fiat and GM succeed? Absolutely! I would love it if they would build better products. Yet, as a consumer, I have the RIGHT to choose the best product for myself and my family. I’m not just going to buy a product from the Big 3 to support an American company. I am going to buy the product that fits my needs and if they don’t offer one, I’ll buy one that does. I have owned a slew of GM products over the years. Right now, they don’t offer anything that really fits my needs. I have driven the GM twins, Ford F-150 and Dodge Ram. I don’t care for any of them, that’s all.
In the future, realize I am the one who is “approving” all of your comments. Any vulgarity will be edited out. If you have a good argument make it, I’m not stopping you from speaking your mind. I realize your frustration at the current state of the nation, but calling other people names won’t change anything.
-Tim
The American way of life is one of freedom and choice. An educated way of life is making the best use of that freedom and choice. Economists tend to look at the big picture and forget the details like how a production plants supports more of the surrounding area. For examples look in the rust belt, without the big plants the smaller shops and supporting businesses don’t have the cash flow to survive. In a shopping environment the economics is the same. A mall needs at least one or two big name “anchor” stores to flourish when they move on and close look what happens to that mall. Aftermarket and rebuilt parts and supplies are an ongoing expense for vehicles. For instance most of the aftermarket parts for my Harley motorcycle are now made overseas as well as many GM and Ford parts and subcomponents. How does that help keep an American laborer employed? The argument that where the money is where development occurs is, is only partially correct. Development is an expense and not a profit center so by its nature any money/profits are needed to be spent there. It’s an outgo and the return is not manifest until there is production and it is sold. Yes perhaps the salaries of those in development may be higher, that does not make up for the quantity and reach of labor force needed to manufacture the item. In an ideal world I would love the company to be based and producing in America, but given the choice I would take a plant where many good paying jobs are over nothing any day. Especially if it’s a good product like a Tacoma!
Michael,
Great points! Yes, looking at the big economic picture puts things really into perspective.
-Tim
So we have to do something about the air to keep things clean.
“Provide a diesel engine good fuel and it will last forever and a day. Well now you CAN make an impact by reducing the emissions coming from your vehicle.