Ok, more information on what the legal definition of "domestic content" is:

Domestic content: beginning in model year 2005, components that are wholly grown, produced or manufactured in the U.S., Canada or Mexico or substantially transformed during the manufacturing process in the U.S., Canada or Mexico into a new and different article of commerce

So, you could produce every part for an engine or transmission overseas, ship individual pieces or "large chunks" to the US for "final assembly" - & that engine or transmission would quality as domestic content. Sounds like the "domestic content" label isn't much good, huh? And just to muddy the waters further, companies can apply for "exemptions". So you could actually build AND assembly something overseas - and still claim "Made in the USA". Sounds like some politician(s) got a nice kickback somewhere..

 

I don't need anybody educating me on the term 'local' in relation to automakers. Toyota is no more American than GM is Japanese... it's just a spin on words to help change people's mindset about accepting foreign auto brands.

The mere fact that money is going back to Japan so that Toyota can continue to clone Camry's and sell them virtually unchanged in different regions throughout the globe is proof that they are just a money hungry Japanese automaker with very little interest to diversify and give the consumer something unique and exciting. Toyota build cars they believe you should be driving, not cars that you want Toyota to build.

The only reason why Toyota/Honda/Nissan have invested in the US is to circumvent the federal government's rules to protect the American auto industry. It's not principally because they want to create jobs and keep the economy rolling.

I would love to see the Japanese open up their market to US companies. If the US federal government introduced a law to allow as many Japanese vehicles to be sold in the US as Japan sells US vehicles, it might redress the current imbalance that's allowing the Japanese automakers to continue to prosper. It might also suppress Toyota's aggressive growth targets and cause profits to plummet. Maybe then Toyota might shed its conservative approach.

But why change if money is easy to come by?

 

Originally posted by Fbodfather....

STATEMENT: “OH YEAH? WELL MY TOYOTA/HONDA/BMW/MERCEDES IS BUILT HERE IN THE UNITED STATES!”


82% parts in the average GM car or truck are domestic content
At Honda, it’s 49%
At Toyota, it’s 41%
Nissan? 38%
BMW? 11%
Lexus is 3%

(by the way……go look at what the ‘transplants’ pay in taxes….real estate, school, state and federal……you might be surprised……if you’re a teacher and you’re complaining about budgets in you’re driving a Toyota or Honda, SHUT UP!)

GM/Ford/and DCX provide 23.4 jobs per 100 vehicles sold in the United States

The Japanese competitors? 13.3 jobs per 100 vehicles sold in the United States

GM’s capital investment in the United States from 1999 thru 2003 was $20Billion. Toyota’s capital investment from 1980 thru 2003 was $10.7Billion. Nissan’s? 2.8Billion from 1980 thru 2003…Honda? $5.6Billion – ’80 thru ’03.

GM’s contribution to the U.S. Gross National Product (GNP) is 4 times that of Toyota

Every Day, over 1 million North Americans earn their living by helping GM build and sell cars in North America. – Every month, 457,000 retirees and their spouses count on GM for pension checks. More than 1.1 Million people receive health care benefits from GM. A one-point drop in GM market share results in over 18,000 jobs in the United States.

 

Yep, like I said, I'm well aware of the average percentages and that's why I've said time and time again that I'm aware on average that buying an import is worse for the economy than buying a domestic, but people who are so redneck as to just make an assumption based on the badge on the front of the car somebody drives or the car they drive, annoy me. My point has always been it's not always black and white, import and domestic. It's very often shades of gray and there are increasingly more and more cases where you'd be doing the domestic economy FAR more good to buy an 'import' than to buy a 'domestic'. Take the Honda Civic for example. Buying that would send far more dollars to your brothers and sisters across the US than a Chevy Aveo, which would be 95% in support of a bunch of Koreans.

Please also consider, when looking at those numbers, that historically the Japanese makes have only made cars here that they intend to SELL here. Whereas we have built cars for distribution all over the world. That most definitely tends to skew numbers. But look at the changes over the last 5 years. GM has been making a very obvious and very strong push to move parts sourcing and labor from overseas, build cars in their country of final sale, and so on. Do I blame them? Not at all! It makes financial sense for a variety of reasons; many of the same reasons why the import companies are investing more and more money recently in sourcing parts, labor, and even design teams from our domestic market.

So what am I trying to say here? It's my belief that those who are trying to say "buy domestic only" are fighting a battle that in the long run can't be won and even if it were won, it wouldn't do us any good. In this day of the expanding global economy, domestic economic isolation may help over the short term, but it's only allowing the rest of the world to grow stronger in the mean time, and we can't isolate our economy forever and expect to stay on top.

Solution? GM and Ford both need to take a card from D.C. and merge with another large company from another continent. Just my opinion.