From: declrckd@rtsg.mot.com (Dan J. Declerck)
Subject: Re: Profits to Japan?
Organization: Motorola Inc., Cellular Infrastructure Group
Date: Thu, 5 Nov 1992 17:01:12 GMT

In article <1d6vpbINN116@usenet.INS.CWRU.Edu> aas7@po.CWRU.Edu (Andrew A. Spencer) writes:
>
>In a previous article, greg@cherokee.b23b.ingr.com (Greg Moritz) says:
>
>>In posting subject Re: Cars for tall people
>>dmarshal@Stars.Reston.Unisys.COM (Dave Marshall) writes:
>>> (Before you flame me, consider that the '92 Accord is a US car by 
>>> Government definition.  My Honda was made in Marysville, OH.  For 
>>> the "but the profits go to Japan" crowd, I say "Better there than 
>>> to the UAW.")
>>
>>The issue of profits going here or there is not as simple as; 'Buy
>>a Japanese car - send the profits to Japan.'  The Japanese are investing
>>heavily in the US by building assembly plants and design centers as well
>>as encouraging their suppliers to do likewise.  That money comes from
>>profits *not* sent back to Japan.
>
>the last i read on this, there are  many technical difficulties that 
>the government has in classifying a vehicle as US, NA, or other...
>Honda being one of the hardest..seems..according to the article..that
>Honda was buying Japanese metals..haveing an American co. work them, thus
>whenn it comes out shaped, it is considered american(US), then it is 
>partially assembled by Americans in the US, and is shipped elsewhere, duty
>free(CANADA), to be finished out, with still more parts bought from japanese
>companies...and then shipped back to US, and thus is sold as an AMERICAN car,
>despite the fact that only the work(some of) was performed by US workers...
>i dunno if it's been straightened out since i read these articles..but...i 
>just have a real problem with some of these(seeemingly) unscrupolous(sp)
>dealings.....almost as if they are lying to both sides of the deal...oh well..
>DREW
>
>
>
>>
>>The Japanese, in order to survive here, will have to become integrated
>>producers who conceive, design, and build their cars here much like the
>>European arms of the US automakers.

No, there is no incentive to make the car parts (components) here in America.
If they (Japanese mfr) do buy parts from a local supplier, it is commonly a 
member of it's own keiretsu, being financed and created by the same conglomeration
that the manufacturer belongs.
The Japanese economic structure is not too much unlike the U.S. before the 
Sherman Anti-trust legislation. 

>>
>>Profits obtained from sales of Ford, Chrysler, and GM products (where
>>applicable) often times end up going overseas to purchase other businesses
>>and set up factories ...

Yes, the North American Auto manufacturers do set up plants in other countries
to build cars in other countries. But these cars and a majority of their parts
never make it to the U.S. The engineering and part content are primarily for the market
in which they are sold.
In other words, The U.S. manufacturers like to integrate into the market economy
in which they sell. The Japanese on the other hand, engineer almost everything
in Japan, and build a majority of the components in Japan, and might do final
assembly here (which is a pretty small portion of the total cost of a vehicle).
IN other words, the Japanese like to dominate their aspect of the economy in which they 
sell. 


>>
>>There is also the financial angle:  Profits of Mazda are partially 
>>delivered back to Ford - who owns part of Mazda.  Profits of Isuzu
>>likewise come back to GM.  Toyota probably owns some GM stock (?).
>>Individuals can buy shares of Honda, Toyota, and Nisson on the US
>>stock exchanges.  Profits sent to Japan are then sent back here.
>>Japanese investors probably own large chunks of Ford, etc.  If you
>>buy a Mustang, you are probably sending some profits back to Japan.
>>

True, the shocks are made by tokiko (I believe). But, I'll bet that my
mustang has much more North American Content, than any Accord that rolls off
the Marysville assembly line.

5.0L V8 - made in Windsor, canada, or Cleveland OH.
Borg Warner T5 gearbox - Made in Ohio, I believe.
Rear end - made in the Ford Axle plant, sterling heights, MI (home town)
Steering Gear - TRW steering and suspension, Sterling heights, MI
EEC-IV - Made in Franklin Park Illinois by Motorola
Sheet Metal - various places in the U.S
Glass - Domestic CarLite

The best thing I like about it... Engineered in Dearborn, MI.
by Americans, for the American market. The Japanese don't seem to have the "flair"
in design and engineering that the American companies do. SUV's and minivans are
an american concept.  Some people would probably argue with me, and talk about the
Miata, the J30, Infiniti Q45, Lexus LS400, Nissan 300ZX, etc..
You'll notice that these are just reworked designs from the past, brought forward
with more modern manufacturing techniques.

I bought this car (Mustang LX5.0) because:
1) it has the heart and soul of american styling and the performance characteristics
I like for the price I could afford.
2) A lot of the components are made by classmates in high school.
3) A majority of the money spent goes back into the U.S. economy, therefore
   raising my standard of living.

If given the choice, I'd buy it again (probably get more options, though).
I've never owned a car without a V8 motor, and never one with less than 4.3L
of displacement. I am going to try my best at keeping it that way.

>>Dave bought the best car for his needs.  So will I.
>>
I wish the best for you...

-Dan


-- 
=> Dan DeClerck                      |  EMAIL: dand%isdgsm@rtsg.mot.com   <=
=> Motorola Intl Subscriber Group    |                                    <=
=>                                   |  Phone: (708) 632-4486             <=
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