Turbys_1700
Elite Member
That's true in most cases but in some cases, like Hyundai in Alabama, they have found it cheaper to produce Hyundai's for the US market at a lower cost using domestic labor.
made in usa ?
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That's true in most cases but in some cases, like Hyundai in Alabama, they have found it cheaper to produce Hyundai's for the US market at a lower cost using domestic labor.
RoyJackson
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And Mercedes Benz in Mississippi, BMW in South Carolina, Subaru in Indiana (I think), Honda in Ohio and Toyota (not sure which state, but I think Ohio).
I'm not sure labor cost of manufacture was the main driver in building in the US though.
ultrarunner
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All I can say is Mom's only new car in her life was made in USA...
We got to spend a day at the Toyota Factory in California watching her car going down the line... in all about 6 hours from shell to drive-off.
And... I have the pictures to prove it!
5,000 employees and another 10,000 in related/support roles lost their jobs when the NUMMI plant closed last year.
Many just don't understand just how far reaching the influence of one major manufacturing plant is... the raw steel came in roles from a local mill on one end and out came finished Corollas and Pontiac Matrix the other.
We got to spend a day at the Toyota Factory in California watching her car going down the line... in all about 6 hours from shell to drive-off.
And... I have the pictures to prove it!
5,000 employees and another 10,000 in related/support roles lost their jobs when the NUMMI plant closed last year.
Many just don't understand just how far reaching the influence of one major manufacturing plant is... the raw steel came in roles from a local mill on one end and out came finished Corollas and Pontiac Matrix the other.
JoeinTX
Platinum Member
"That's true in most cases but in some cases, like Hyundai in Alabama, they have found it cheaper to produce Hyundai's for the US market at a lower cost using domestic labor..."
&
"And Mercedes Benz in Mississippi, BMW in South Carolina, Subaru in Indiana (I think), Honda in Ohio and Toyota (not sure which state, but I think Ohio).
I'm not sure labor cost of manufacture was the main driver in building in the US though..."
One other Toyota plant is in Texas. What pattern do you see here? Is there a geographic trend here? I know full well how sensitive this board can get to legitimate debate about labor unions, BUT, it's lunacy to deny the fact that companies producing in the U.S. have increasingly moved their ops to Right to Work states. The "Rust Belt" ring any bells? Toyota recently closed their NoCal plant with the intention of transferring the operation to the South or Plains regions. Ironic, eh. What do these tidbits of fact all lead to? Cheaper labor forces propagate the establishment of revenue generating business.
The facilities mentioned above also largely produce vehicles intended and designed for sale in North America. Not internationally, with the exception of the BMW SUV although their export is a fraction of the total produced, so it makes logical business sense to produce as cheaply as possible as close as possible to the intended market. That tenet does not apply to TVs, computers, consumer electronics, clothing, etc. which are much more universal in design and function and can be produced practically anywhere a viable economical work force exists which can then be shipped internationally much more cheaply than they can be produced locally in multiple facilities around the world.
There are floating variables to this however. Take the price of oil. As fuel costs, and thus transportation costs, go up the economics of producing farther from the market and then shipping takes a hit. As the work forces of emerging nations gain more skills, display higher levels of quality, and produce more items reliably, they also begin to demand higher wages. The cheap labor advantage they provide can erode and when combined with the costs of transportation, for example, can make them a much less desirable locale to produce a product that is designed and sold for international markets.
Hey, I work for a German company that provides a service (among others) for American Airlines using Korean made equipment for operations in South America, Europe, and Asia. I'm a Texan who's a member of the NRA who drives a Dodge (which is owned by FIAT) made from parts from Mexico as well as other parts beyond, and is typing this on a Toshiba computer. It's okay. It really is.
The middle class doesn't work in factories anymore. Not in advanced economic countries. Menial production line work is outsourced to the marginally educated and manageable. Our middle class is now largely engaged in services or technology.............i.e, ME!
&
"And Mercedes Benz in Mississippi, BMW in South Carolina, Subaru in Indiana (I think), Honda in Ohio and Toyota (not sure which state, but I think Ohio).
I'm not sure labor cost of manufacture was the main driver in building in the US though..."
One other Toyota plant is in Texas. What pattern do you see here? Is there a geographic trend here? I know full well how sensitive this board can get to legitimate debate about labor unions, BUT, it's lunacy to deny the fact that companies producing in the U.S. have increasingly moved their ops to Right to Work states. The "Rust Belt" ring any bells? Toyota recently closed their NoCal plant with the intention of transferring the operation to the South or Plains regions. Ironic, eh. What do these tidbits of fact all lead to? Cheaper labor forces propagate the establishment of revenue generating business.
The facilities mentioned above also largely produce vehicles intended and designed for sale in North America. Not internationally, with the exception of the BMW SUV although their export is a fraction of the total produced, so it makes logical business sense to produce as cheaply as possible as close as possible to the intended market. That tenet does not apply to TVs, computers, consumer electronics, clothing, etc. which are much more universal in design and function and can be produced practically anywhere a viable economical work force exists which can then be shipped internationally much more cheaply than they can be produced locally in multiple facilities around the world.
There are floating variables to this however. Take the price of oil. As fuel costs, and thus transportation costs, go up the economics of producing farther from the market and then shipping takes a hit. As the work forces of emerging nations gain more skills, display higher levels of quality, and produce more items reliably, they also begin to demand higher wages. The cheap labor advantage they provide can erode and when combined with the costs of transportation, for example, can make them a much less desirable locale to produce a product that is designed and sold for international markets.
Hey, I work for a German company that provides a service (among others) for American Airlines using Korean made equipment for operations in South America, Europe, and Asia. I'm a Texan who's a member of the NRA who drives a Dodge (which is owned by FIAT) made from parts from Mexico as well as other parts beyond, and is typing this on a Toshiba computer. It's okay. It really is.
The middle class doesn't work in factories anymore. Not in advanced economic countries. Menial production line work is outsourced to the marginally educated and manageable. Our middle class is now largely engaged in services or technology.............i.e, ME!
ultrarunner
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Production from the joint GM/Toyota NUMMI plant that closed in California went to Texas and Canada.
Employees were union and part of accepting the severance package agreement was agreeing not to apply at another Toyota facility...
Toyota was basically severing all ties by offering the package... GM really didn't offer anything and was in Bankruptcy when the plant closed.
Some workers had been at the plant for 20 or more years. They built a good product, one that did well in the CA market and one that kept a lot of people employed.
Some of the issues had to do with California...
The rolling Blackouts a few years ago played havoc with plant operations and the high cost of power.
Second, the plant tried to expand on land held for expansion... Toyota said the expansion was critical to keeping the factory viable for the future. NUMMI's bid to expand was fought on just about every level.
The deal breaker was a family of burrowing owls living in/on the proposed expansion site.
Well the owls won and the plant closed... I was surprised there wasn't a concerted effort to find a solution... seems, unless a company is high tech cutting edge... there is little interest in finding solutions.
It also didn't help that Partner GM bailed and had no product planned to replace the Pontiac that was also built.
Employees were union and part of accepting the severance package agreement was agreeing not to apply at another Toyota facility...
Toyota was basically severing all ties by offering the package... GM really didn't offer anything and was in Bankruptcy when the plant closed.
Some workers had been at the plant for 20 or more years. They built a good product, one that did well in the CA market and one that kept a lot of people employed.
Some of the issues had to do with California...
The rolling Blackouts a few years ago played havoc with plant operations and the high cost of power.
Second, the plant tried to expand on land held for expansion... Toyota said the expansion was critical to keeping the factory viable for the future. NUMMI's bid to expand was fought on just about every level.
The deal breaker was a family of burrowing owls living in/on the proposed expansion site.
Well the owls won and the plant closed... I was surprised there wasn't a concerted effort to find a solution... seems, unless a company is high tech cutting edge... there is little interest in finding solutions.
It also didn't help that Partner GM bailed and had no product planned to replace the Pontiac that was also built.
mjncad
Super Member
California + labor unions + tree huggers = Bad Juju.