Toyota: The new 'made in America'
Already about 70% of the cars the company sells in North America are made in the region. Now it wants to increase production.
The Toyota Camry has been the No. 1 American-made car for four years straight, according to an annual survey from Cars.com. In fact, Toyota and Honda (HMC) have four out of the top five vehicles on that index. Ford's (F) F-150 is in second place.
Toyota is looking to increase its North American production as a hedge against the strong yen, the Associated Press reports. Already, about 70% of the vehicles Toyota sells in North America are made in the region. In the last year, Toyota said it would hire 3,500 workers in North America and pour $1.6 billion into its factories.
A strong yen hurts overseas earnings for Toyota. The solution? "The hedge against currency is to build cars where you sell them," Jim Lentz, CEO of Toyota Motor Sales USA, told the AP. Honda is also very strong in North America, building 85% of the vehicles it sells there.
Toyota is so impatient to boost North American production that it's nagging some suppliers to keep up with demand. The company says there are "less than 20" suppliers that can't produce enough to keep up with its needs, according to Automotive News. The company's North American purchasing chief, Robert Young, didn't name those suppliers, but he said they're running production lines six or seven days a week.
"They are struggling, and it’s not sustainable," Young told Automotive News. "We are asking them if they are maintaining proper maintenance schedules, because they are running so tight."
Toyota wants to make 1.8 million vehicles in North America this year, which would be a record, Automotive News reports. It hopes to beat that record in 2013 and 2014.
It's often more profitable for a company to have parts made overseas. Ford was once strongly American made; the automaker had 20 models with at least 75% domestic parts content five years ago, reports Cars.com. But for the 2012 model year, it only has three. "Yet the same strategy has helped to bring Ford into the black with 11 straight quarterly profits," writes Kelsey Mays of Cars.com.
More from Top Stocks
Made in America? How about assembled in America. After the big floods in Japan last
year, Toyota and Honda almost shut down because of lack of parts from Japan. Look
where the engines and drivetrain are produced. While it is true they hire American workers
to assemble their auto,s the profits go back to Japan.
According to an abc website, which I'm not allowed to post:
The Ford Fusion has 20% American content while the Toyota Camry has 80%.
A japanese car made in america! Is this america anymore?!
I will stick with my 1973 dodge charger!
My last 6 vehicles have been Toyotas. I laugh every time I see the new Chevy commercial saying you can give it back within 60 days. Who's had major problem with any vehicle within the the first 2 payments??? Until an AMERICAN car company offers to stand behind their vehicle for the entire time I'm paying for it ( 5 years) I'll stick to buying Toyota. Why? I haven't needed that guarantee with any of my vehicles for over 20 years now. The big 3 need to stand behind their product or risk losing it all. No gimmicks, no toasters, just an iron clad contract with their customer that they will stand behind their product. A small price to pay for years of crap the Big 3 sold to the American public.
Reading this article, one would think that it is a fine time to be an American. Wow, 3500 additional jobs in North America. Problem is, it's NOT AMERICAN MADE, there just using American Employees. Let me ask all you self rightous, got to be better than the jones' foreign car buyers out there this question: The money upon a US consumers purchase ends up going back to where????. China, Japan, Korea, Germany, --- WHATEVER--- Overseas to the corporate big shots there, not into the American pockets. It makes THEIR countries better off, NOT OURS. So go ahead and buy your foreign made car brand, then turn around and bitch some more about our economy. Even this article indicates that Ford had 7 domestic suppliers, and is now down to 3. Where do you think those jobs went to?? More important, WHY?
All of you foreign car buying fools out there Need an example of the hypocricy and stupidity buying foreign::::::: try this on for size: FOR KICKS AND GRINS---Try going to a local Auto parts store in your neighborhood and ask for American made Rotors and Brake pads. Make sure you ask the salesman for American made--- see if you have any luck with that. YOU WONT. Even for American made cars YOU WONT. So do some more bitching about American Employee Unemployment, and then ask whos fault is it?
It's time to turn the tables and start buying American only products. Time to start DEMANDING AMERICAN MADE PRODUCTS, putting, OUR COUNTRY ON TOP OF THE LEADER BOARD AGAIN. WAKE UP. Also, CEO'S need and should be given this Demand---either take a more in line salary compared to the worker, or your out. The money SHOULD BE going to the Employees, you know, the people that make it all possible in the first place, while your polishing the leather seat in your office with your azz.
Its true Toyota is made in America, but the parts for the auto comes from Japan. And also
the idea for the company also came from Japan. The legends that were truly born and
bread in America are Ford, Chevy and Dodge. Those are the legends we need to stay
Toyotas are still good vehicles, in spite of recent problems. Living in the southeast, I won't own one due to the incredible markup imposed by Southeast Toyota Distributors. These people control the distribution of Toyotas in the entire southeastern region and impose this markup on the dealers. It is not negotiable at the dealers' lots, so you end up paying approximately $500 to $1000 more than you should, all for some bogus processing done by SET. I would have to go from Florida to Tennessee to avoid this.
It's hard to beat the 10 year/100,000 mile powertrain warranty offered by Hyundai. Their cars are high quality, and have been for several years now, after a rather dismal early showing. It's unfortunate that they no longer offer a V6 in the Sonata, but some people say that the 4-cylinder turbo is a good choice. Unfortunately, the Sonata is only 41% US content, according to a site I checked.
Of course the product is amazing, it is built with more AMERICAN parts, by AMERICAN labor that is non-Union. Everyone knows the UAW turns out junk, with Government Motors being the worst.
Do yourself a favor, and buy American, and skip the junk made by overpriced UAW scum.
If you see a Union (Marxist) label. Put it down, don't buy it. And don't shop anywhere where they have union help. Go elsewhere. Don't support the Marxists and Democrats
Copyright © 2014 Microsoft. All rights reserved.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.