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10-30-2008, 05:41 PM #11
OPSenior Member
bailout plan may widen to more industries
the unions may be hurting US automakers by foolishly clinging on to hopeless ideals like living wages and job security and benefits, but those automakers were doing very well not too long ago even though they had unions...if you kicked out all those unions tomorrow, it wouldn't create a demand for poorly built gas guzzlers...the us auto industry misjudged the market by focusing on big engine cars and light trucks, and had to cut prices, issue low interest loans to high risk customers, and offer incentives to get rid of excess inventory...in contrast, toyota doesn't build cars until there is a demand for them
toyota doesn't build cars in america just because of unions or american productivity...toyota is building a new plant in mississipi because of: "fears among company executives about a U.S. political backlash over imports...They also need another plant to address their rising imports, which have gotten quite high."
Toyota to build $830 million plant in Mississippi - International Herald Tribune
the us government has a history of threatening japan over auto imports...back in 1980, the reagan administration bullied japan into voluntarily reducing it's vehicle exports to the united states (they started building cars in the usa within 3 years)...later the clinton administration threatened to impose 100% tariffs on japanese cars unless japan forced it's citizens to buy more US cars (!!!)...those tactics are why japan builds cars in the united states:
Averting an Automotive Trade Wreck With Japan
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