Domestic content data point

Apr 27, 2006 4 Replies

Forbes , May 8, 2006 issue p. 58.



Canada U.S. content of a new Ford Mustang : 65%



Canada U.S. content of a new Toyota Sienna: 90%



The article is called Parts Paradox: and describes how the big U.S. parts suppliers are unable to make money on U.S. operations, but do very well with the overseas units. For example, Delphi wants to keep just 8 of its U.S. plants and...130 of its overseas plants. Visteon, Fords's Delphi, has 20 U.S. plants and 94 overseas.



On the other hand, foreign parts manufacturers are moving production INTO the U.S. (dodging tariffs, currency swings, and transportation costs, they usually locate in non-union regions, sometimes buy struggling U.S. plants cheap).



Interesting dynamic.


Just shows how the unions have driven the US companies and their jobs out of the country.

I believe it ! Absolutely. I cannot blame the workers, it is megatrend.

Much more complex than that. How did the unions get so powerful and get so many benefits? The companies gave it to them. It was a scenario that worked for decades but has since changed. Unions do have a place in the economics of the world, but both company and unions have to truly work together. Unions did make the work place a better place decades ago. (yes, some were very corrupt though) No, I do not now nor have I ever belonged to a union.

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