Ford - circling the drain

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I guess you never heard of the Ford model "T" LOL
mike


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First off I don't believe that to be true. It is the costs of doing business in the US, not the build costs that are hurting all American corporations, not just auto manufactures.
It costs Ford less than $9,000 to build a car, the size of a Focus, that sells to a dealer for around $13,000. But it is true, like most every manufacturer, they need the sales weighted small cars for CAFE to be able to sell the big cars and trucks that earn the big bucks for the corporation. The Town Car costs around $19,000 to build and sells to a dealer for around $37,000
Even if is true Ford needs to do what Toyota does, set up a Japanese corporation to avoid US Corporate income taxes, get most of their the raw material and most of the parts made in lower wage counties, that have far fewer government regulations, then assemble the cars in American plant with worker who are paid less, get fewer benefits and pay the majority of the costs for their own health care and pension plans so they can say the cars are made in America or better yet, simply import most of what they sell in the US as does Toyota. ;)
mike

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Mike Hunter wrote:

Toyota doesn't avoid American federal income taxes. Their subsidies are American companies (although totally foreign owned) and pay income taxes like any other American company. Ditto Honda.
If Ford set up a Japanese subsidy (or bought the rest of Mazda), then it would have to pay more income taxes than it does now, because Japanese corporate income taxes are higher than those in the US.
Most (around 80%) of the parts in US-built cars from Toyota are from the US. And most (nearly 60%) of the cars sold by Toyota are built in North America (US and Canada - the vast majority in the US).
Funny thing is that I haven't seen any labels "Made in America" on Toyotas or any other cars, from Toyota or the Michigan 3. Honda used to label some of its products "Made in America," but that was lawn mowers, not cars.
You need to check your facts before powering up the computer.
Jeff

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Bloomberg http://doiop.com/hij61l
Toyota Motor Corp. probably moved closer...to ending Ford Motor Co.'s 76-year reign as the second-biggest seller of automobiles in the U.S.
Ford's sales may have dropped in May for a seventh straight month and Toyota's probably rose, analysts surveyed by Bloomberg said. Through April, Ford's lead in U.S. sales had narrowed to 50,242 vehicles from 232,922 after the first four months last year.
"I don't think there's much debate that Toyota will overtake Ford" in the U.S., Dennis Virag, president of Automotive Consulting Group in Ann Arbor, Michigan, said in an interview. "You won't have to wait very long for that."
Ford has been No. 2 in the U.S. behind General Motors Corp. since 1931...
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