Japanese automakers aid American Economy

[Newbiewar]

Toyota set to pass GM as world's largest carmaker

Toyota Motor is poised to become the world's largest carmaker, ousting General Motors of the US from the top spot, according to a new business plan to be released in December.

The plan is expected to state Toyota aims to make more than 9.2m vehicles in the year to March 2007 – a figure that should allow it to surpass GM if the US carmaker continues to suffer from falling sales and is forced to curtail production.

Toyota is already the most profitable carmaker in the world, having reported a net profit of Y1,171bn ($10bn) in the year to March 2005, while profits at GM and Ford have been hit by a series of financial difficulties. GM on Monday reported a net loss of $1.63bn in the July-September quarter.

Toyota said the company was not fixated on becoming the world's largest carmaker in terms of volume. "We are always thinking about a turndown. We are not rushing just to build market share," a spokesman said.

But the Japanese company's rise is likely to touch a raw nerve in the US, where legislators have accused Japan of deliberately weakening its currency to bolster exports. The yen is trading at about Y115 to the dollar compared with the carmakers' own forecasts of Y105.

These accusations have been countered aggressively by Toyota, which commissioned research that concluded in 2003 it generated jobs for about 386,000 people in the US, once ancillary parts suppliers and other associated companies were included.

The December plan is expected to strengthen Toyota's defence against these allegations by revealing it should produce more vehicles outside Japan than inside for the first time as it transfers manufacturing away from Japan to lower-cost countries and the US, its main market.

Achieving the production target set out in the new plan will involve increasing production by about 900,000 units a year, with its operations in the US, China, Thailand and eastern Europe expected to account for the majority of the increase.

The demands of these new targets, however, could put strain on the quality of Toyota's products as well as those of its major suppliers, which are already struggling to meet demand.

Toyota recently announced it would recall 1.41m cars globally – the largest recall in its history – as a result of problems in 16 of its models that led to faults with the headlights.

This was followed by the recall of 160,000 of its high-profile Prius gasoline-electric hybrid cars worldwide after it was revealed they may stall unexpectedly.

Copyright 2005 Financial Times

[RANT]
Well I've got to say... The Japanese based Toyota sure is interested in aiding the US Economy... They want to increase prices to make their vehicles less competitive agaisnt the Domestic automakers.
They've invested billions into America and employeed... lets see... according to this

These accusations have been countered aggressively by Toyota, which commissioned research that concluded in 2003 it generated jobs for about 386,000 people in the US, once ancillary parts suppliers and other associated companies were included.

Toyota according to their website in 2004, Direct North America Employment is 37,351
Well... To those that dont know, in the United States roughtly 10% of all employes are in the automotive industry either directly or indirectly. That would probably be roughtly 25 million people employeed in the automotive industry.
And to say more, The Japanese based Toyota sure is interested in aiding the US Economy...

in another artical bashing Toyota, titled If I were king 5/26/05 a journalist writes:

There's a Toyota ad running currently that brags about the fact that they have eight manufacturing plants in the U.S. building more than a million vehicles a year. The ad then finishes with some patriotic music and the statement "Toyota - a company that has created over 200,000 U.S. jobs - a company proud to do its small part to add to the landscape of America."
[...]Fact: Toyota workers work for less money and are five times more likely than a GM worker to sustain an on-the-job injury and 10 times more likely to be injured seriously enough to lose work days.

$36.55 for the average American auto worker, says automotive consultant John Hoffecker of AlixPartners.

I've heard USA autoworkers are third in world wide wage rates... #1 being German Empoyees, and #2 being Japaneses employees...

Why then if the Japanese automakers have such good ethics to pay better then 36.55 that in america I've heard as low as 10$ an hour?

Why does Delphi need to be around 9$ to compete with many of the other automakers, if the USA average is 36?

Why doesn't GM clam to have indiectly employees(perhaps they cant count them all)? Why does Toyota claim to have opened up 200,000 american jobs, when they really only employee 37,000 people here in america?

Why if Toyota is so concerned with Anti Japanese protests do they continue to advertise moving america forward, when clearly they are moving americans backward by bankrupting two of the largest American companies?
[/RANT]

[CARBIZ]

This is going to become a self-fulfilling prophecy. If dumb ass idiots keep hearing this "sky is falling" doom and gloom they will stop buying GM and Ford. Chrysler was faced with the same problem in 1980 with all the bad news about being bailed out by Washington.

[siegen]

This is going to become a self-fulfilling prophecy.  If dumb ass idiots keep hearing this "sky is falling" doom and gloom they will stop buying GM and Ford.  Chrysler was faced with the same problem in 1980 with all the bad news about being bailed out by Washington.

[post="34652"]<{POST_SNAPBACK}>[/post]

Toyota is an evil empire, and that's all there is to it. Everybody stop buying Toyotas and tell your friends and family to stop buying them as well (and their friends too).

[razoredge]

This is going to become a self-fulfilling prophecy.  If dumb ass idiots keep hearing this "sky is falling" doom and gloom they will stop buying GM and Ford.  Chrysler was faced with the same problem in 1980 with all the bad news about being bailed out by Washington.

[post="34652"]<{POST_SNAPBACK}>[/post]

exactly, thats what this has all been about. minipulation. ignoring it is the answer, then you dont have to think about it. Its always easier to walk away than look it in the eye. To bad the people will never really see what killed the American auto industry and all others, they will only remember that last page. The page on which it was all blamed on simple people that got up everyday and went to work and did their jobs.

Its so funny to hear Japanese telling "everything they have done for us " and Americans that cant see the reality of it, will believe it.

[FUTURE_OF_GM]

Its so funny to hear Japanese telling "everything they have done for us " and Americans that cant see the reality of it, will believe it.

You betcha...

Toyota's PR praises will be sung from the roof tops and NAIVE America will buy it hook line and sinker along with a brand, new shiney Toyota.

This is the SHADY business I'm talking about at the same time they're 'reassuring' or distracting us, they're stabbing us in the back by destroying what we've built. Toyota never DREAMED of creating that many American jobs, much less did it.

GM and Ford need to band together and launch a MASSIVE PR war against this. ESPECIALLY before Toyota hypnotizes our government into this think (Which it already has hit home with it, since Michigan's own Graholm is always advocating the company at the expense of Detroit)

The media and anti-Detroit are getting their way... GM will finally fall from greatness and we'll all be peace, warm, fuzzy and happiness driving a Prius. Kill (Or debilitate as much as possible) Detroit has ALWAYS been the plan and it is coming full circle. Chrysler was weakened and sold off (All the while, the American people were being lied to [a merger of equals] to dispel dissention--see the patern?) then it was Ford's turn which they've practically run into the ground (The only reason it hasn't been sold off or bankrupted is because of it's Ford Family ties) and now it's GM's turn (Since around 2002, after they finished with Ford)

Trust me, Toyota WILL pass GM, America WILL buy into this, ironically (more like planned) just in time to be "patriotic" and buy an "american made Tundra" and GM and Ford will eventually rot into nothingness or be disassembled over the long term unless some eyes are opened.

[haypops]

Most Japanesse auto manufacturers are partialy owned by American companies. No american brands are owned by Japanesse. The Japanesse independants (Honda and Toyota) produce large numbers of vehicles here and export significant numbers of them from here. I have bought nothing but GM for the last 15 years. I have had so many repairs this week. My Daughter and husband and 2.5 kids moved in with us lately and their 2 Toyotas, have been flawless.

[mustang84]

Toyota said the company was not fixated on becoming the world's largest carmaker in terms of volume. "We are always thinking about a turndown. We are not rushing just to build market share," a spokesman said.

So that's why your PR department keeps mentioning every three months about how you're going to overtake General Motors in X amount of time? :bs:

[Variance]

Toyota is an evil empire, and that's all there is to it. Everybody stop buying Toyotas and tell your friends and family to stop buying them as well (and their friends too).

[post="34802"]<{POST_SNAPBACK}>[/post]

Come on, now... That's a bit much.

[FUTURE_OF_GM]

I have bought nothing but GM for the last 15 years. I have had so many repairs this week. My Daughter and husband and 2.5 kids moved in with us lately and their 2 Toyotas, have been flawless.

It's funny how preconceived notions, like this, that have been drilled into people's heads come out in certain instances.

If you've had so many repair bills then why the loyalty for 15 years???

I'm not trying to be mean, but my dad said the same thing yesterday. And he did this KNOWING, KNOWING that we've owned just as many, if not more RELIABLE domestics than imports.

For example, the Toyota we have now has 237,000 original miles on it and has been a VERY reliable car. Yet, my 1990 Lumina that I recently sold had 235,000 trouble free miles on it. BUT, you don't see my dad (A devout Chevrolet/GMC man---but not a domestic nazi like me) raving about how our domestics have been as reliable and well built as our imports.

Yet he still spouts that line of drivel about imports being 'such great cars'.....

GM and Ford need to launch a MASSIVE joint campaign to change perceptions once and for all, now that they're getting the products to back it up. Something has to be done.

Again, I'm not being mean haypops, and I'm not at all trying to undermine your credibility. I'm simply relating it to my experiences and what I think is a phenomenon.

[haypops]

If you've had so many repair bills then why the loyalty for 15 years???

[post="35720"]<{POST_SNAPBACK}>[/post]

It's really been a bad week. Its because the later GM vehicles haven't been as dependable as the earlier ones(Saturn, Chevy P32, Cavelier) . Its because the GM card rebate keeps me loyal. It's because the GM cars are more "fun". Its because ...