Thursday, February 19, 2009

Is buying An American Car Impossible?

The other day I wrote a blog about buying American cars and got some comments about is it really possible to buy American? With Toyota being built in Alabama, BMW in South Carolina, and GM and Ford in Mexico there is not a simple answer but I will try to simplify it for you.
Foreign car manufacturers generate billions of dollars in jobs and community infrastructure in the U.S., but there is a difference between Detroit's economic footprint and that of its foreign rivals.
The Center for Automotive Research says Detroit's Big Three employed almost 240,000 people in the U.S. at the end of 2007. Foreign makers had about 113,000 U.S. employees at the time.
The key difference in how the Big Three and foreign brands support jobs in the U.S. comes outside the factories, according to a 2006 study by the Level Field Institute, a group formed by Big Three retirees in Washington.
"What's driving the difference in jobs ... is investment in research, design, engineering and management," Level Field President Jim Doyle said in a statement on the 2006 study.
The Center for Automotive Research said the Big Three had 24,000 engineers on U.S. payrolls in 2007. The Japan Automobile Manufacturers Association said its member companies had 3,500 U.S. research and development employees in 2007.
Look at it this way: You buy a Toyota that was built in Indiana by American employees. That purchase is helping out an American Family. I buy a Ford that was built in Mexico. My purchase is helping out a Mexican Family. However, my purchase is also helping out American retirees of Ford who put in 30+ years When Ford first hired these people, they made a promise to them. I'm just helping Ford keep that promise.

The United States is a service based economy and unless we can put our once booming industries back into place, this great nation will continue spin downwards. Fortunately, it's never too late and we can turn this around. Should Americans buy American cars? Absolutely!

Looking to buy a car and need free advice? Go to the Ultimate Auto Advisor

1 comment:

  1. Not to disagree with you entirely, but it doesn't matter if quality has actually improved or not. What matters, in business, is the perception of quality. The American auto makers can employ hundreds of thousands of Americans right here at home, but if the people they employ take more pride in their union paycheck, job security, and the size of their organization than in the actual product they manufacture, then it's no surprise that things have gotten to this point.

    What makes me a bit disappointed is to know that, yes, there are Americans working in foreign car plants inside the US, but they are not necessarily being used because they are good at building cars, rather simply assembling them. The engines, transmissions, and related system components likely come from home and are bolted together by Americans. Going further down this road, consider your HDTV, Bluray, and smart phone are all made overseas, but things like toilet paper, fake wood laminate flooring, and disposable lighters are still made with pride in America.

    We're quickly becoming a nation of people who can't be bothered with being challenged to perform. Once individuals begin to command the wages associated with top level performance, these American companies begin looking for replacements overseas to improve the bottom line. Too much more of this line of thinking will likely lead to Americans either owning McDonalds or working there.

    So I think "Buy American" has lost its meaning. Today, I think we should be focused on taking ownership of what we do and letting our pride in actually performing shine.

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