Roy Exum,
In response to your e-mail, I do not know why you think that Toyota does not “enjoy the same liberties and truths we Americans enjoy.” What liberties and truths do we have that they don't have? I can tell you some, however, that they enjoy that we do not. They not only have the liberty to come to America and build a plant, a dealership, etc., but they also receive incentives for building in the U.S.A. Other governments are savvy enough to realize they do not want foreign competition in their own countries, so they make the process as difficult as possible for American auto companies to establish on their soil.
Foreign real estate is also extremely expensive, and our companies are not courted with incentives as are the foreign car companies in our country. China even requires that the American car companies form a 50/50 partnership with their auto companies.
We cannot even sell our cars in other countries without exorbitant import taxes. We should reciprocate with the same high taxes for foreign imports to our country, but we are too interested in being generous and promoting “Free Trade.” Where is our level playing field? Evidently our government felt that foreign-owned automakers should have the same privileges as their American-owned counterparts when the “Cash for Clunkers” program was initiated. This cash was offered for any kind of car. Not so in Japan. They excluded American cars until the Senator from Michigan called their hand, and they were forced to change their policy. Of course, by that time, the program was over and Japan had again reaped all of the benefits.
You express concern about the 175,000 Americans employed by Toyota (only 37,000 of these are actual auto workers) but where is your concern about the 300,000 Americans who are employed by American-owned automakers or the nearly 3 million more Americans who depend on those plants for their own jobs?
GM and Toyota use about the same number of workers to build each car, but only 12% of Toyota’s workforce is actually here in the United States. This is compared to 37% of GM’s workforce. The American-owned auto industry employs 231 Americans for every 2,500 cars sold. Toyota 42, Honda 44, Nissan 34, and Hyundai/Kia 15 or a total of 135 American workers for every 2,500 cars sold. So, for every 2,500 cars made by foreign auto makers, 96 jobs are lost to Americans.
Those states that boast about the jobs foreign automakers are bringing to their constituents don't stop to look at the whole picture. American owned automakers would create those same jobs plus employ people in research and development, design, engineering, etc., while those same jobs for foreign owned automakers are usually foreign jobs.
There are other downsides to courting foreign car companies to build in America. When a foreign auto plant is built on American soil, do you think they use American banks for their loans? What do you think they do with their profits? Does that money stay in America? I don't think so. In the particular case you mention in Mississippi, Japan received $296 million in incentives to come to Mississippi. (The state of Mississippi was proud this amount was so low compared to the $363 million they paid Nissan to build in Canton, Mississippi in 2003). So, how long does it actually take for the state to recuperate the “courting money” they spend to lure the foreign company to their state?
The good people of Mississippi have doled out an additional $43 million to build a new frontage road for this most recent Toyota plant that doesn't even know when or if it will ever open. Yet, you want to make an issue out of the $50 million they have agreed to donate to the community to help alleviate the strain all of these jobs would put on the community. You would think any company would be able to “donate” $50 million to the community when they were given almost $350 million to build the plant.
Now, with the plant opening suspended indefinitely, it seems Toyota has announced that this $50 million will not be a cash handout and will be distributed over a decade. The money will be put in an endowment controlled by a Tupelo-based foundation called CREATE. They “expect” 5% of the principal to be dispersed on an annual basis, but to date nothing has been done. Does Toyota still seem so generous?
Why do you think an American-owned company would not be just as community-oriented as Toyota under the same circumstances? Do you have information to substantiate your comment? I don't think you do, and I don't understand why you are so quick to stab your country in the back.
GM has numerous programs that have been operational for generations that aid the communities. They donated $70,000 to United Negro College Fund to Assist Deserving Students.
Chrysler and Ford also have multiple on-going community projects.
You also stated that you felt Toyota’s troubles were a hoax developed by our government because the U.S. Treasury bailed out the American auto companies and, thus, needed to protect their investment. I imagine the families of the more than 50 people who died due to the unintended acceleration of Toyota vehicles would be quite upset to hear this was all a government hoax.
And, how do you then explain why our government didn't exclude Toyota from the Cash for Clunkers program that was designed to stimulate the economy and encourage Americans to buy cars? I guess that is also why our government continues to allow Toyota to lobby in our government, to import a significant higher number of cars than we are allowed to import in their country, and to accept incentives from our various states even though those policies are not reciprocated. I guess that is also why Toyota is refusing to turn over the code to the black boxes that are in every one of their cars. This information would more than likely tell the true story of what is happening when this unintended acceleration occurs and could perhaps have saved many lives if this information had been divulged several years ago when the first complaints were made to Toyota. If this is all a government hoax, what is Toyota’s fear?
You seem to feel that buying a car made in America by a foreign-owned company is buying American. Unfortunately, that seems to be the attitude most Americans take, and, as a result of this attitude, we could become even more dependent upon foreign countries. We don't make anything any more. The American automaker is our last manufacturing industry in America, and the American public just does not care. Millions have lost their jobs because Americans thought it was more of a status symbol to drive a foreign car. Will it be a status symbol when the only choice you have is to drive a foreign car? Will it be a status symbol when your son has to go to war and be dependent upon Japan or China to build the tank he is driving to defend our country? Will it be a status symbol when we are totally dependent upon foreign countries for everything?
Americans support their sport teams with avid enthusiasm, but they won't support their fellow Americans who are struggling to survive in this economy. They would rather tout the “good job” Toyota is doing building a plant in the Mississippi ghetto and the generosity of Toyota giving the state $50 million to improve education. They just don't mention that this plant has been in the makings since 2006 and has yet to open its doors. They also don't mention that to date none of the $50 million community donation has been seen by the Mississippi community. They also don't mention that Mississippi is out almost $350 million, and Toyota has no idea if or when that plant may open.
I would like to know what it is that makes you, an American, not want to protect and promote your own country and the industry that was the very backbone of this nation. If the media would only do half as much to promote American-owned business as it does foreign-owned, America might once again be able to hold up its head in this world and take back the industrial lead it once enjoyed.
Best Regards,
Jack Dickinson
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Mr. Dickinson calls on us to back "American" companies rather than Toyota. Sadly, by "American", he means companies which have used the federal government to rob money from me, my kids, and my grandkids to bale them out from the incompetence of their management and the greed of the U.A.W.
I hope to buy a new car a few years down the road. Unless it's a "mini-car," none of which are now made in the U.S., it will be an "Assembled in the U.S.A." car. However, it will be from a manufacturer which hasn't robbed me through our federal government. If the company is headquartered in Japan, Germany, or Korea, so be it. I will not buy a car from a company which has stolen from me.
Best Regards,
Rich Beecher
East Ridge
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Mr. Dickinson, my response to your article is that no one could have said it any better. It is about time we started telling the truth like it is and have the figures to back it up. Thanks for the article,
Bud Mansel