Toyota imports approximately 20-30 percent of its total American (assembled) inventory from Japan. So, in essence Jack Aust was correct in his estimation that two out of three Toyota vehicles are built in America. A side note to the Longshoremen strike is the fact that Ford Motor Company also suffered because they transfer 360 different parts by way of ships located on the West Coast. Daimler-Chrysler said it had no significant impact from the strike due to the fact that 94% of its products are produced in North America.

It doesn’t stop with assembled cars and trucks, it goes much deeper. We hear a lot about free trade and Toyota claims to be an example of that term. Remember the term, “positive business impact” stated by Toyota VP Jack Aust? For many years the Japanese would not allow America the same free trade that we allow them. They found ways to keep our vehicles out of their country and would not allow any manufacturing plants to be built. Remember the portion of Jack Roush`s statement about the train wreck?

The perceived notion that American business provides parts and materials to Toyota for their U.S. operations is fabrication now believed as the truth. Toyota hides behind words like “diversity” in their approach to obtaining goods and services from American companies. Diversity means Japan, and that’s where the money trail ends. Governor Phil Bredesen of Tennessee is the latest example of people being snowed by Toyota.

Bredesen recently added to the positive business impact for Toyota when he announced Bodine Aluminum would be building a casting plant in his state. Among incentives to build the plant Bodine received a $400,000 jobs creation tax credit, $1 million discount on the purchase price of the land. A big message was sent about how Bodine, a St. Louis based company will bring 200 jobs to the area but there was one thing never mentioned.

Bodine Aluminum is Toyota.

Did you really think Geoffrey Bodine owns Bodine Aluminum? No, Toyota acquired Bodine in the 90`s. Companies that supply parts to Toyota in general are owned by Toyota and/or have foreign Japanese interests directly linked to Toyota in one form or another. That’s the diversity part. We give you a job making our product of which you only produce the cheapest part of the vehicle and, we supply all the parts through foreign interests.

According to Car Economics and Business Group Director Sean McAlinden, most transplant vehicle parts are imported from Japan. Most of the rest are sourced from North American facilities owned by Japanese supplier companies. Highest in U.S. (sourced) content for Toyota is the Camry at 70-75 percent. McAlinden points out that the first 25 percent of the figure range equates to sales and marketing expense. That premise drops the Toyota Camry to 50-55 percent in regard to sourced parts.

The engine of a vehicle represents a reasonable portion of its total value. There’s a large number of Japanese engines assembled in America but how American is a Japanese engine assembled in an American plant with a majority of Japanese imported parts? The labor cost to assemble Toyota vehicles in America equals five to ten percent of their total value.

Starting to see what Jack Roush was talking about? You can come out from under your desk Aust, they know the truth now.

There are still cars and trucks considered 100% American. Don’t be fooled by comments suggesting, all the Detroit car companies import parts and use foreign labor, it’s incorrect. The Ford Taurus is made in Chicago and Hapeville, Ga. The Chevrolet Silverado pick-up is built in Indiana and Michigan plants. The Ford Explorer and Chevrolet Trailblazer are made in Midwestern U.S. factories.

You be the judge my friends, which Jack is telling the real story? Which Jack is hiding behind the American flag in an attempt to fool the public?


Toyota Supplier Diversity Statement:

Toyota is committed to having a supplier base, which more closely reflects the diversity of our customers and the diversity of our team members who build Toyota vehicles in North America. Having a diverse supplier base enables us to contribute to the economic well-being of all segments of the U.S. population. Also, we recognize that partnering with suppliers who provide a diversity of ideas - in addition to delivering manufacturing support, goods and services - creates a significant competitive advantage for Toyota.

Did that paragraph of nothing make sense to you? That’s how they talk at Toyota in an effort to pull the imported wool over the eyes of unsuspecting Americans.


Additional Note:

NASCAR held its Touring Series national championship Saturday night at the Irwindale Speedway. The event, sponsored by Toyota produced Austin Cameron as event winner in the Grand National Division. Jack Aust from Toyota was on hand to congratulate Cameron on his deserved victory.

In the USA Today interview with Jack Roush, winner of the Winston Cup title as car owner suggested concern over lavish Toyota spending. I don’t think Roush has much to worry about after seeing how things went in Irwindale.

Toyota gave Austin Cameron $30,000 for winning the race and allowed him the use of a Toyota Tundra pick-up for one year. How cheap can you possibly be Aust? Toyota is so cheap they couldn’t even give the kid the truck they had to lend it to him for a year.

Dewalt Tools, sponsor of the Jack Roush owned No.17 Ford Taurus driven by Matt Kenseth gave a dry-wall worker from Seattle $25,000 and a new Chevrolet Silverado pick-up for driving a few screws into a wood plank last week in Phoenix.

That move in Irwindale was one of the cheapest deals of all-time. It cost Toyota next to nothing to produce that foreign piece of junk and, it more than paid for itself with the many commercials shown during the event. Aust, you beat all I have ever seen and I have been to two World Fairs and a rodeo.


Acknowledgments:

(Case Study 507.2 John F Kennedy School of Government, Harvard University. Forbes, Jerry Flint article, Cars and Currency 6/23/03. Follies, American Companies, Alan Tonelson 10/8/02. Consumer Guide article, What is an Import, Gary Witzenburg 2/24/03.CNN Money article What is an American car 6/27/03. USA Today article Chris Jenkins 11/6/03. Port of Portland Ore marine manifest totals 96-03.)