The Money Goes to Japan with Every Sale of a Toyota

[malorn]

Originally Posted by bac

If the US auto makers would produce an auto as good as some of the stuff coming out of Japan, most ALL would buy from them. It's really as simple as that.

Why would we reward bad companies (foreign or domestic) that produce crappy products?

... Brad

So which automakers are building "crappy" products and show me some solid sources. And a solid source is not your grandmother who bought a Vega in 1973 and lots of trouble with it.

[carz89]

(re: the big oil companies)

Originally Posted by samiam

They're all hell-bent on self-profit and can't see past the next quarter's returns.

In a capitalistic society, which includes much of the world now, a company won't survive if it's not "hell bent" on profit. If they're not profit-driven, they should call themselves a "nonprofit". Toyota is also hell-bent on profit. The difference is public perception. For countless reasons, the big oil companies have developed a tarnished image over time, much more so than any auto manufacturer. So, when a big oil company publicizes their profit, which is huge in terms of magnitude, the media and the public who can't remember 4th grade arithmetic have a field day. I don't have the facts in front of me, but I'd wager a small bet that, let's say over the last 5 years, Toyota has had as large a percentage profit as any oil company. Please put me in my place if my hunch is incorrect.

Anyway, I still love my Prius, and I've always preferred Toyotas in general. I don't subscribe to the "don't spend your dollars on foreign products" philosophy. I do my research and I always try to buy the best quality product for my dollar, period. So some of our profit goes to Japan? So what? It's a global economy, my friends. The folks that have access to that profit (Toyota upper management and TM shareholders) are very likely to spend it around the world, including when they go on vacation in the United States. In a simplistic sense, "what goes around comes around".

[malorn]

Originally Posted by carz89

(re: the big oil companies)

In a capitalistic society, which includes much of the world now, a company won't survive if it's not "hell bent" on profit. If they're not profit-driven, they should call themselves a "nonprofit". Toyota is also hell-bent on profit. The difference is public perception. For countless reasons, the big oil companies have developed a tarnished image over time, much more so than any auto manufacturer. So, when a big oil company publicizes their profit, which is huge in terms of magnitude, the media and the public who can't remember 4th grade arithmetic have a field day. I don't have the facts in front of me, but I'd wager a small bet that, let's say over the last 5 years, Toyota has had as large a percentage profit as any oil company. Please put me in my place if my hunch is incorrect.

Anyway, I still love my Prius, and I've always preferred Toyotas in general. I don't subscribe to the "don't spend your dollars on foreign products" philosophy. I do my research and I always try to buy the best quality product for my dollar, period. So some of our profit goes to Japan? So what? It's a global economy, my friends. The folks that have access to that profit (Toyota upper management and TM shareholders) are very likely to spend it around the world, including when they go on vacation in the United States. In a simplistic sense, "what goes around comes around".

So Toyota imports $35 billion worth of cars every year and its ok because toyota execs probably spend some money on vacations in the US?

[Zythryn]

Originally Posted by malorn

So Toyota imports $35 billion worth of cars every year and its ok because toyota execs probably spend some money on vacations in the US?

No Malorn, I suspect that was simply an example.
Toyota spends much more money on investments IN the US than their executives do on vacations.

Yes, GM is losing sales because many people are buying other brands.
However, why do you think people are buying other brands?
If GM had more planning skill (as a company) they would have been quicker to adapt to the current changes in the marketplace.

If Toyota had better planning skills, they would have been able to build more of their Prius to meet the demand.

However, Toyota did have some planning and were able to take advantage of the increase in gas prices, where GM had nothing, but blueprints for a concept car which no one can buy yet.

[carz89]

Originally Posted by malorn

So Toyota imports $35 billion worth of cars every year and its ok because toyota execs probably spend some money on vacations in the US?

Good question, but you're exaggerating the dollar figures and twisting the intent of my point. $35 billion (if that's the actual import value) isn't the leftover profit, and those with access to the profit will end up spending it all over the world. Nothing wrong with that. It's a global economy.

There is a school of thought that US citizens should avoid purchases that result in monetary flow overseas, otherwise the consequence will be a decline in US economic security and standard of living. Many proclaim that it's our birthright to enjoy this economic security and standard of living and to do what it takes to keep other countries from catching us. I'm not saying it's not a worthy cause, but it's not a birthright. The challenge doesn't begin with "we shouldn't buy Asian products because it sends profit overseas". It's way more complicated than that. There are underlying issues in leadership, technology development, trade and human morality that deserve to be solved first.

[malorn]

Originally Posted by carz89

Good question, but you're exaggerating the dollar figures and twisting the intent of my point. $35 billion (if that's the actual import value) isn't the leftover profit, and those with access to the profit will end up spending it all over the world. Nothing wrong with that. It's a global economy.

There is a school of thought that US citizens should avoid purchases that result in monetary flow overseas, otherwise the consequence will be a decline in US economic security and standard of living. Many proclaim that it's our birthright to enjoy this economic security and standard of living and to do what it takes to keep other countries from catching us. I'm not saying it's not a worthy cause, but it's not a birthright. The challenge doesn't begin with "we shouldn't buy Asian products because it sends profit overseas". It's way more complicated than that. There are underlying issues in leadership, technology development, trade and human morality that deserve to be solved first.

The $35 billion is an estimate of Toyota's value of Japanese imports. I understand what you are saying to a point but the American Standard of Living is not a birthright it is the result of decades of ingenuity, risk, and hard work. It was not dumb luck. If the US had operated during the first 200 years as it has over the 32 we would not be having this conversation and probably neither of us would have access to computers or the internet.

[carz89]

Originally Posted by malorn

The $35 billion is an estimate of Toyota's value of Japanese imports. I understand what you are saying to a point but the American Standard of Living is not a birthright it is the result of decades of ingenuity, risk, and hard work. It was not dumb luck. If the US had operated during the first 200 years as it has over the 32 we would not be having this conversation and probably neither of us would have access to computers or the internet.

I completely agree. Back to the headline of this thread, money going to Japan is far from the biggest problem the US is facing right now.

[eagle33199]

In a true global market situation, which we are pretty close to (ignoring local subsidies, import tariffs, etc) you end up with communities and countries performing specialized work. If Japan can build better cars than America, it's actually detrimental to everyone's economy to attempt to artificially prop up the American auto industry.

through advances in Agriculture, we've managed to increase the yield from one acre of corn 10 fold - that means we have less farmers producing more grain at a cheaper price which has, in turn, absolutely crippled other countries agriculture industries (Primarily Mexico, and is one of the primary reasons we have an illegal immigration problem).

I say buy the best products you can, regardless of where they come from. Allow the market forces to take hold and our specialties to provide for us. Every country has to find it's niche, it's playing field where it can be competitive on a global market. For the US, that is no longer automotive design and manufacture.

[FBear]

I see that Malorn uses the Ford Excreation as his avatar. How appropriate!! An American gas guzzler. Oh, and now what were you waving the flag about.

[malorn]

Originally Posted by FBear

I see that Malorn uses the Ford Excreation as his avatar. How appropriate!! An American gas guzzler. Oh, and now what were you waving the flag about.

My Avatar is actually a Toyota Sequoia, easily mistaken for a Ford Excursion. I am using the Toyota avatar after losing a bet.