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Cheaper to build Camrys in Japan and ship them to the US
Posted on 11/21/17 at 5:49 pm
Posted on 11/21/17 at 5:49 pm
Toyota says it is more expensive to build cars in the US.
Motor Trend
quote:
Generally, automakers save money by producing vehicles in the markets where they’ll be sold. But apparently Toyota hasn’t quite found this to be the case with its plant in Georgetown, Kentucky.
The president of the Kentucky factory painted workers a scary picture of the situation earlier this month. It’s more profitable to build a Camry in Japan and ship it to Kentucky than build one at the Toyota factory in the state, Wil James said in an internal video discovered by Bloomberg.
James said that Toyota plans to keep investing in the plant for the next 30 years, but only if cost cutting can be achieved. Workers will learn more about efforts to reduce costs in the coming weeks, the plant president said.
“I’m not sharing this to scare you, but to heighten your awareness of the current risk we now have,” James said. “But all of this is on the assumption that we can make as much progress in cost reduction and efficiency as we’ve made in quality and safety.”
Toyota is looking to cut production costs in order to invest heavily in electrification, autonomous cars, and other technologies. Earlier in the year, Toyota President Akio Toyoda set up a team make sure any new investments are matched by cuts to other areas.
Motor Trend
12
Posted on 11/21/17 at 5:51 pm to Obtuse1
I thought building here was just a way to escape tariffs.
Posted on 11/21/17 at 5:51 pm to Obtuse1
Is that a union plant? That's usually why vehicles are so expensive to build here. Automakers have to pay some assembly line worker with a GED 110k per year
Posted on 11/21/17 at 5:55 pm to jdeval1
quote:
Is that a union plant?
No
Posted on 11/21/17 at 5:56 pm to Obtuse1
Seems like this would be an article from the 1990's
Posted on 11/21/17 at 5:59 pm to Obtuse1
What they are not saying is that crossovers are now more popular than sedans and they'd rather use the plant to build something other than the Camry, which has become dependent on sales to Car Rental and taxi companies.
They aren't the only ones.
Lexus, Cadillac, Chevrolet, Ford, and Nissan are all considering dropping a sedan from their lineup (or merging sedan models) while devoting more North American production capacity to crossovers.
They aren't the only ones.
Lexus, Cadillac, Chevrolet, Ford, and Nissan are all considering dropping a sedan from their lineup (or merging sedan models) while devoting more North American production capacity to crossovers.
This post was edited on 11/21/17 at 6:07 pm
Posted on 11/21/17 at 6:01 pm to Obtuse1
Tesla on the way up..
Posted on 11/21/17 at 6:02 pm to Obtuse1
We’ve been buying Asian shite for cheaper for a long time now. Why is this news??
Posted on 11/21/17 at 6:09 pm to notiger1997
quote:
Seems like this would be an article from the 1990's
Or a movie from the 1980's.
Posted on 11/21/17 at 6:14 pm to Obtuse1
Trump putting in work. Maga, right?
Posted on 11/21/17 at 6:16 pm to member12
The Camry is still the number one selling vehicle in the US that isn't a pickup.
Posted on 11/21/17 at 6:17 pm to jdeval1
quote:
Is that a union plant? That's usually why vehicles are so expensive to build here. Automakers have to pay some assembly line worker with a GED 110k per year
As it should be.
The other option is to send your money to Japan for the same product. fricking insanity that this country wants to penalize themselves for trying to keep money within their own economy.
Globalization works only if we bring everyone up to the highest level. Not drop working conditions and wages to that of the lowest bidder.
Posted on 11/21/17 at 6:19 pm to jdeval1
quote:
Automakers have to pay some assembly line worker with a GED 110k per year
As opposed to pay a 10 yr old rice for working 16 hrs shifts
Posted on 11/21/17 at 6:37 pm to rrboy
quote:
As opposed to pay a 10 yr old rice for working 16 hrs shifts
That is not remotely germane to a discussion about Japanese built cars.
Posted on 11/21/17 at 6:44 pm to Obtuse1
They have already introduced a new production process at the Japanese plant that is much more efficient than the process previously used and the process currently used in Kentucky. Once that new process is in place in Kentucky it will greatly improve productivity there.
Posted on 11/21/17 at 6:45 pm to Obtuse1
how much of the price is related to workers salaries?
Posted on 11/21/17 at 6:49 pm to jdeval1
quote:
Is that a union plant?
No, Toyota and the people who work there aren't that dumb.
Posted on 11/21/17 at 6:52 pm to Obtuse1
quote:
That is not remotely germane to a discussion about Japanese built cars.
The god-damn Germans have nothing to do with this!
Posted on 11/21/17 at 7:16 pm to Obtuse1
How? Japanese pay more for most raw materials and make around the same pay as us on average.
A problem in the U.S.is also what made is who we are. We are never content. We demand better.
Make $20 an hour, shoot for $40.
Make $100k shoot for $250k
Which is great. Hell I try and make as much as possible every hour.
But.. other countries. They will set a wage and just accept it.
I think I remember reading there were very few raises and incentives in Japan.
A problem in the U.S.is also what made is who we are. We are never content. We demand better.
Make $20 an hour, shoot for $40.
Make $100k shoot for $250k
Which is great. Hell I try and make as much as possible every hour.
But.. other countries. They will set a wage and just accept it.
I think I remember reading there were very few raises and incentives in Japan.
Posted on 11/21/17 at 7:37 pm to Napoleon
Freakonomics podcast on the German economy briefly touches on the problems Volkswagen had with the UAW and how our auto union was a huge hinderance in getting the Tennessee plant off the ground. They have unions in Germany that work with the company’s other elected board members as opposed to against them, they weren’t thrilled with the early attempts to work with the UAW apparently...shocker
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