Economy

Toyota Goes After Ford And GM

December 21, 2005 ⋅  E-Mail Article ⋅  Print Article ⋅ Post a comment

Are Foreign Companies Like Toyota and Hyundai Creating More Domestic Jobs Than So-Called ‘Buy American’ Companies Like Ford And GM? Some may be suprised.

As many bicker about the shape of our domestic economy, many in politics are trying to help out. However, what are our own American domestic companies doing to improve their own situation? Are foreign companies actually creating more jobs in domestic America than our so-called ‘Buy American’ companies? You may be surprised.

I recently listened to two retired autoworkers talk about the current status of American manufacturing. I asked both where they had worked, one retired from GM, the other from Fords. Both drove a car from their respective previous employer. I asked them how they felt about current issues affecting their previous employers and here is what I attained from the conversation with both of them.

Ford and GM thought they had the magic pill, they thought that they could outsource production of their vehicles, eliminate employees, and sell just as many cars but at a higher profit margin. I guess they are now reaping the benefits. Both companies stocks have tumbled and they are facing ever increasing competition on their home soil.

The problem is that since they cut their loyal customer base by outsourcing their employment, they now find that not as many people are buying their vehicles. I guess they found that Americans are loyal to their employers not the product. Every hard working American autoworker I know used to admonish anyone who bought a foreign made car. However, as Ford and GM moved manufacturing out of the country many fellow autoworkers lost their jobs. Ford and GM figured they (laid off employees) would get another decent paying job and still be a loyal customer, think again.

Now the problem is coming full circle, they have cut so many jobs that many now refuse to buy their cars because they feel betrayed by these automakers. Fords and GM are now in a market that is squashing them into oblivion. They opened Pandora’s box thinking they were the only ones privy to the contents. However, many countries began taking advantage of the resentment felt towards the outsourcing American companies, these foreign companies promoted their products in America and it has worked. Now Toyota, and Honda, and many other foreign companies are now opening factories in America in a bid to build up a loyal customer base by hiring American workers, the wages are a little lower than expected but they are creating jobs in America.

These companies have seen the error of most American companies and they are swooping in to fill the void left because these companies made a mistake, they misjudged American loyalty. They thought that we would buy a Ford or GM just because it had a familiar American name, they pushed the ‘Buy American’ slogan, but foreign countries pushed back this time. Foreign countries paid for research and studies that displayed to the American public that as so called ‘Made In America’ companies were eliminating jobs in America, these foreign companies were creating jobs in America. If you got laid off from one auto manufacturer and went to work for another, whose car are you going to buy?

Fords and GM build great cars, both individuals as well as myself suggest you test drive one any time you have the chance, even consider buying one. Just let them know, you understand how loyalty works, it flows both ways and it must be earned and kept, not persuaded or demanded.

We have established a link for you to further investigate this issue for yourself. Please use our Search Job Exporting Companies link in our Link area to find out who is sending out American jobs in your area.

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