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Japanese flooding the US with cheap imports


Ford Jellymoulds

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NOW that the Big Three automakers are shrinking their labor costs — removing what they have so frequently described as the biggest obstacle to selling more cars in this country — they should be able to regain market share. Right?

 

Well, not exactly. The game has changed. The foreign companies against whom the Big Three compete are selling more and more cars that are not made at their factories in the United States, making labor costs here less important. They are importing again — in fact, quietly importing almost as many cars as they did in the 1980’s when Japanese vehicles flooded the market, provoking an outcry, and also import quotas.

 

NEW YORK TIMES..........

http://www.nytimes.com/2007/09/30/weekinre...ml?ref=business

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Trina Ewald, a spokeswoman for Toyota Motors North America, says the company has no choice. “We are operating our North American plants at full capacity,” she said. “We are building as many vehicles as we can locally.”

 

That is not true in Japan, where Toyota and other auto manufacturers have built new factories, only to find that domestic sales are not enough to keep them operating at full capacity. Exports have helped to do this. So has the weak yen — weak for most of this decade, reducing the cost of production, measured in dollars, and thus the profitability of exports to the United States.

 

Are both Tundra plants operating at capacity?

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Aside from GM the domestic automakers seem quite reluctant to really delve into the small car segment. Dodge offers only the Caliber, Ford only the Focus (ugh), neither is offering a Prius or Hybrid Civic like option. Whatever the merits or not about the Prius, people are buying the hell out of them and the domestics seem content to just give those sales to Japan.

 

Of course these cars wouldn't be in demand if the damned oil companies would build a couple of refineries here and quit keeping the cost of fuel artificially high. But I understand that we live in a culture where everyone seems to have forgotten that greed is wrong.

Edited by BlackHorse
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Of course these cars wouldn't be in demand if the damned oil companies would build a couple of refineries here and quit keeping the cost of fuel artificially high. But I understand that we live in a culture where everyone seems to have forgotten that greed is wrong.

 

Thing is the Europeans and Japanese are masters of the small fuel efficient car. Over in the US Gas prices are much much cheaper than everywhere else. So you have benefited from being able to afford to run big cars. Wherever you go in the world people love big cars but only really in the US can you afford to run them. But things are a changing. Ford, GM and Chrysler need to learn quickly.

 

Whilst you might moan at how much it's costing the likes of Jag and Land Rover to pioneer aluminium cars, stop start tech, electric motors in axels, etc there needs to be a recognition that it won't just be Land Rover and Jag in the Ford empire that get stung by higher fuel prices. What for example is Lincoln doing to reduce weight and improve MPG? The likes of Ford and GM will have to look to their overseas divisions for answers. So ultimately you will see Ford import Ford cars from Europe if the US market demands smaller engines and better MPG. Ford is actually quite well placed to do this. But pity Chrysler who really are not.

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Thing is the Europeans and Japanese are masters of the small fuel efficient car. Over in the US Gas prices are much much cheaper than everywhere else. So you have benefited from being able to afford to run big cars. Wherever you go in the world people love big cars but only really in the US can you afford to run them. But things are a changing. Ford, GM and Chrysler need to learn quickly.

 

Whilst you might moan at how much it's costing the likes of Jag and Land Rover to pioneer aluminium cars, stop start tech, electric motors in axels, etc there needs to be a recognition that it won't just be Land Rover and Jag in the Ford empire that get stung by higher fuel prices. What for example is Lincoln doing to reduce weight and improve MPG? The likes of Ford and GM will have to look to their overseas divisions for answers. So ultimately you will see Ford import Ford cars from Europe if the US market demands smaller engines and better MPG. Ford is actually quite well placed to do this. But pity Chrysler who really are not.

 

Gas prices are cheaper in the US because we don't have rampant socialist taxes on our fuel. In truth they pay quite close to the same amount for fuel in Europe as we pay in the United States, the rest is taxes from their screwed up governments. Additionally 40% of cars in Europe are diesel powered, something that likely will never happen here due to environmental regulations. So there is no reason Europeans could not also be driving larger cars or paying less for gas except that they have tyrant's for governments who have too much control over their private citizens and need to be promptly overthrown.

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Your are right on fuel costs BlackHorse, you would think they might be more or less the same the world over, you don't know how lucky you are.

 

US gasoline prices high, you must be joking.

http://www.aaroadwatch.ie/eupetrolprices/

 

Labour like to be spiteful towards to the rich folk in the UK, by taxing everything they enjoy like Land Rovers, Jaguars, BMWs etc, and now are trying to force then off the roads, and into small 120g Co2 eco boxes by law, so l don't think it will be to long before you see the Queen in a stretch Mini limo, but to save face she will she will use the horse and carriage (If Greenpeace don’t ban them because horses fart, and we would not want them damaging the ozone layer would we now). You might just see me at the front of the crowd when we overthrow Gordon Brown.

Edited by Ford Jellymoulds
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In reference to the sub-title: "Japanese flooding the US with cheap imports, US government sits back does nothing to help the big 3."

 

No one in the government forced anyone in the United States to buy a "Japanese import".

 

The sales slide for the Big 3 was because the consumers in the United States wanted the Japanese product.

 

Period!!!

 

That brings up the question "Why did the change happen" and "Why does the consumer continue to buy imports?"

 

My question to anyone here is "Do you think the Big 3 sales would do any better in Japan?"

 

The issue for now isn't about "Closed Boarders".

 

It's about making a product the consumer wants more than a Japaneses import. When that issue is fixed and sales start to turn around, the Open Boarder issue can be challenged. And the challenged will be led by the consumer overseas who would rather buy a Big 3 product vs. a Honda or Toyota.

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Well if it helps any, I make sure all the contractors I hire drive real domestic trucks. I will not hire anyone with a Titan or Tundra to do work at any of my properties. And they are aware that their subs BETTER not drive any Titan/Tundras to the worksites either. :)

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Well if it helps any, I make sure all the contractors I hire drive real domestic trucks. I will not hire anyone with a Titan or Tundra to do work at any of my properties. And they are aware that their subs BETTER not drive any Titan/Tundras to the worksites either. :)

my dad does that with his business....wait no he doesn't his contractors and sub-contractors are smart enough to know not to buy a tundra or titan....plus they do not really fit in with all the fords

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my dad does that with his business....wait no he doesn't his contractors and sub-contractors are smart enough to know not to buy a tundra or titan....plus they do not really fit in with all the fords

Hell I sent a Direct T.V. installer away because he was driving a Chevy and that's all I use to buy was Chevy. It was a pain in the but, but they found me an installer who drove an Econoline! When my contract is up I'm going with TimeWerner cable because all they drive is the Econoline I build!

Edited by Furious1Auto
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In reference to the sub-title: "Japanese flooding the US with cheap imports, US government sits back does nothing to help the big 3."

 

No one in the government forced anyone in the United States to buy a "Japanese import".

 

The sales slide for the Big 3 was because the consumers in the United States wanted the Japanese product.

 

Period!!!

 

That brings up the question "Why did the change happen" and "Why does the consumer continue to buy imports?"

 

My question to anyone here is "Do you think the Big 3 sales would do any better in Japan?"

 

The issue for now isn't about "Closed Boarders".

 

It's about making a product the consumer wants more than a Japaneses import. When that issue is fixed and sales start to turn around, the Open Boarder issue can be challenged. And the challenged will be led by the consumer overseas who would rather buy a Big 3 product vs. a Honda or Toyota.

 

Japan Manipulates Currency to Bail Out Japanese Auto Manufacturers, $3,000 per car might be the first thing that maybe the US government might help the US big three with.

 

US government needs to create a level playing field when selling cars, Japanese are making $3000 to $12,000 per car in currency manipulation.

http://www.levelfieldinstitute.org/fact-sheet-yen.htm

Edited by Ford Jellymoulds
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If the sale price of each product line is about the same, why does more people buy imports?

 

BTW, most (not all) Big 3 product line ups are less expensive (don't forget rebates) than than Japanese imports. As such, the Japanese are not undercutting the Big 3 products.

 

As such, the question is; "Why doesn't the consumer pocket the money and help the domestic company and worker?"

 

The issues isn't "How much more the imports make in profits." Because many consumers are willing to pay more for a Japanese import vs. a Big 3. product.

 

"Japan Manipulates Currency to Bail Out Japanese Auto Manufacturers"

 

The Big 3 does the same thing when they import their products from other nations. (i.e, Aveo, Mazda, etc..)

 

 

 

Again, the issue isn't about money, the issue is why are Americans willing to buy a Toyota or Honda instead from the Big 3?

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Japan Manipulates Currency to Bail Out Japanese Auto Manufacturers, $3,000 per car might be the first thing that maybe the US government might help the US big three with.

 

US government needs to create a level playing field when selling cars, Japanese are making $3000 to $12,000 per car in currency manipulation.

http://www.levelfieldinstitute.org/fact-sheet-yen.htm

 

The article is written by:

Mustafa Mohatarem, Ph.D., Chief Economist, General Motors

 

I'm sure it's not written with a bias slant. :shades:

 

 

The price of the U.S. Dollar is drooping. Why isn't the Big 3 sales increasing proportionally?

 

Here is the good and bad about the U.S. Dollar. Make your own easements.

http://gbr.pepperdine.edu/041/devaluation.html

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If the sale price of each product line is about the same, why does more people buy imports?

 

BTW, most (not all) Big 3 product line ups are less expensive (don't forget rebates) than than Japanese imports. As such, the Japanese are not undercutting the Big 3 products.

 

As such, the question is; "Why doesn't the consumer pocket the money and help the domestic company and worker?"

 

The issues isn't "How much more the imports make in profits." Because many consumers are willing to pay more for a Japanese import vs. a Big 3. product.

 

"Japan Manipulates Currency to Bail Out Japanese Auto Manufacturers"

 

The Big 3 does the same thing when they import their products from other nations. (i.e, Aveo, Mazda, etc..)

Again, the issue isn't about money, the issue is why are Americans willing to buy a Toyota or Honda instead from the Big 3?

As a consumer I have to disagree, it pis-ses me off when a retailer, manufacturer, or supplier does not charge reasonable prices for something that I "need" Gas is the best example of this! The profit margin is exactly what makes me angry! Toyota should be ashamed of itself! At least the domestics try to give their customers a fair price and still pay the bills!

Edited by Furious1Auto
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If the sale price of each product line is about the same, why do more people buy imports?

 

 

One reason is because the imports can add alot of extra equipment and nicer materials for the same price as a domestic. So when a consumer compares the import looks much better.

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In reference to the sub-title: "Japanese flooding the US with cheap imports, US government sits back does nothing to help the big 3."

 

No one in the government forced anyone in the United States to buy a "Japanese import".

 

The sales slide for the Big 3 was because the consumers in the United States wanted the Japanese product.

 

Period!!!

 

That brings up the question "Why did the change happen" and "Why does the consumer continue to buy imports?"

 

My question to anyone here is "Do you think the Big 3 sales would do any better in Japan?"

 

The issue for now isn't about "Closed Boarders".

 

It's about making a product the consumer wants more than a Japaneses import. When that issue is fixed and sales start to turn around, the Open Boarder issue can be challenged. And the challenged will be led by the consumer overseas who would rather buy a Big 3 product vs. a Honda or Toyota.

 

The big issue is the trade in cars with Japan, it seems to me trade and currency manipulation is all on a one way street un-level playing field.

 

The artificially weak yen has provided Japanese auto companies a cost advantage ranging from $3,000 on a small car to $12,000 on a luxury sport utility. This subsidy has both facilitated the expansion of Japanese companies in the U.S. and succeeded in keeping American-built automobiles out of Japan. Many in the American manufacturing sector question why the Japanese government’s extraordinary $420 billion currency manipulation program has gone unquestioned and unchallenged.

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In the USA, the retail selling of gasoline is a very low margin business. Most gas stations go broke if all they sell is gasoline, which is why most now sell groceries and about everything else.

 

Gasoline currently fluctuates in price on the commodities markets for around $2.00 per gallon. Local and Federal taxes are about .65, not very much. So you can see the retail profit per gallon is very small.

 

It's true other countries have a very high gas tax, and that makes a lot of sense to me. You have to get the revenue to run the country from somewhere, so why not tax the people who need and tear up the roads the most money? Also a higher gas tax will/can influence consumption, driving habits, and car buying habits, things maybe government has to do, because consumers won't. For those who cry too much intervention, what ideas do you have to wean us off super large vehicles and fossle fuels?

 

I would be in favor of immediately raising the US gas tax .50 (if it was earmarked for transportation needs and not general revenue fund) . I also bet you within a very short time, we would all figure out how it doesn't cost us any extra money. It would change our driving and car buying habits, and would be a begining to help us divorce ourselves from foreign energy sources. Some of you are very vocal about keeping US dollars here, so why would you not favor this idea?

 

Then maybe eventually our car companies would begin making cars we want to buy.

Edited by Ralph Greene
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The article is written by:

Mustafa Mohatarem, Ph.D., Chief Economist, General Motors

 

I'm sure it's not written with a bias slant. :shades:

The price of the U.S. Dollar is drooping. Why isn't the Big 3 sales increasing proportionally?

 

Here is the good and bad about the U.S. Dollar. Make your own easements.

http://gbr.pepperdine.edu/041/devaluation.html

 

Your link is to the Euro not the Yen, if you have an unfair playing field in Europe you get a massive fine slapped on you.

 

Microsoft just got fined $690 million by the EU just for freezing out rivals in server. US government need to give the big 3 a helping hand, and just not let the Japs crap all over them.

http://news.bbc.co.uk/1/hi/business/6998272.stm

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