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Toyota posts first loss, sees worse ahead ......

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Old 12-08-09, 10:54 AM
  #31  
The G Man
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Originally Posted by jruhi4
Your assessment is a touch pessimistic. What I think will happen is that carmakers, while maintaining their headquarters in their nations of origin, will be less afraid of building their cars wherever it's more convenient and less expensive to do so.

Mercedes-Benz's recent announcement that they will start building their highest-volume model, the C-Class in Alabama (joining Germany, South Africa and China as manufacturing venues for that model) is significant. And Lexus itself took that leap earlier by building the RX 350 in Canada.

Fearless prediction: most if not all next-gen Lexus ES 350 production will come to North America as well.
I agree that it is the worst case senario, but isnt that what happened to the good old USA. We lost all the production jobs to countries with cheaper labor. We are left to do the engineering and design work. That aspect of production can only support so many jobs, and new designs can be copy and re-engineer. The Japanese's edge use to be cheaper labor, they have lost that edge. There is no question the Koreans will over take them in the future and pretty soon the Chinese as well.
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Old 12-08-09, 10:59 AM
  #32  
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While I agree with a couple of statements here it really goes down to one thing.

Conversion rates.

Thus we saw Benz recently announce some C-classes will be built here. That is one reason why Hyundai is so competitive, the won is trading more favorable than the yen.

The company that can predict where the conversion rate will exchange in their favor will be a genius.
 
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