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
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. ;)
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,
You need to check your facts before powering up the computer.
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
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