Topic: Japanese car makers big users of North American parts

[Allen]

Japanese car makers big users of North American parts
GREG KEENAN AND HEATHER SCOFFIELD

Globe and Mail Update

May 17, 2007 at 8:40 AM EDT

The view that Japanese auto makers in Canada are simply bolting together vehicles made out of parts imported from outside North America is wrong, says a new study by Statistics Canada released Thursday.

The Japan-based companies and the traditional Detroit-based auto makers are about equally supplied by parts makers located in North America, says a study published in the Canadian Economic Observer.

Production by the Japan-based auto makers jumped to more than 900,000 vehicles last year from a little less than 600,000 in 1999, according to the paper written by Francine Roy and Clérance Kimanyi.

"Even though they are producing many more vehicles, this does not mean that more parts are being imported from overseas," the authors wrote. "This contradicts the impression held by many that the Japanese-owned plants in Canada only assemble high valued-added parts such as engines imported from abroad."

Honda Motor Co. Ltd.  [HMC-N]and Toyota Motor Corp. [TM-N] have been accused by the Canadian Auto Workers union and the Canadian units of their Detroit-based rivals of not matching investments made by the Detroit Three in Canada and of not buying enough parts here.

The study included Cami Automotive Inc., a joint venture of General Motors of Canada Ltd. [GM-N] and Suzuki Motor Co. Ltd., as a Japan-based company, although the vast majority of the vehicles that plant produced last year were for GM's Chevrolet and Pontiac divisions.

Job cuts and plant closings by the Chrysler Group, Ford Motor Co. [F-N] and GM have wiped out thousands of jobs and slashed those auto makers' production in Canada since 1999.

"Since 1999, the new domestics have raised output by exactly one-third, the mirror image of the one-third cut by the Detroit-based firms from 2.4 [million] units in 1999 to 1.6 million units in 2006," the study says.

The Japanese companies are developing capacity to produce most of their parts themselves in Canada, the study adds.

It points to a company that makes seats for Toyota opening a plant in Ontario even before Toyota had announced plans for a new factory in Woodstock, Ont., that is under construction.

[mmret]

Honda Motor Co. Ltd.  [HMC-N]and Toyota Motor Corp. [TM-N] have been accused by the Canadian Auto Workers union and the Canadian units of their Detroit-based rivals of not matching investments made by the Detroit Three in Canada and of not buying enough parts here.

This = Cry more please.

[initial_D]

Isn't there a  Base Domestic Parts Content Percentage that each vehicle has to have to determine if it is Domestic or Import? Regardless of location of manufacturers' head office.

[echo7]

american manufacturing on japanese standards....it works!

[UmroAyyar]

Its cry wolf attitude, 'buying Japanese means betrayal and losing jobs here'.

Well, my previous car was built by our own Canadians, my current car is made by Americans and both of them used more 'domestic' made parts than most 'domestic' cars.

Toyota in both cases. 

[Snowman]

Its cry wolf attitude, 'buying Japanese means betrayal and losing jobs here'.

Well, my previous car was built by our own Canadians, my current car is made by Americans and both of them used more 'domestic' made parts than most 'domestic' cars.

Toyota in both cases. 

Tell that to the tens of thousands of laid off white color corporate head office employees.

[ArticSteve]

US-Assembled Cars  Percent US/Canada content  Name  Corporate Profits
 
Ford Econoline  95%  USA  USA 
Lincoln LS (production ended April 2006)  90%  USA  USA 
Ford Escape  90%  USA  USA 
Mercury Mariner  90%  USA  USA 
Ford Ranger  90%  USA  USA 
Cadillac DTS  90%  USA  USA 
Chevrolet Silverado, GMC Sierra  90%  USA  USA 
Mazda Tribute (Ford)  90%  JAPAN  JAPAN 
Mazda B-Series (Ford)  90%  JAPAN  JAPAN 
Lincoln Town Car  85%  USA  USA 
Mercury Mountaineer  85%  USA  USA 
Ford F-Series  85%  USA  USA 
Chevrolet Colorado, GMC Canyon,  85%  USA  USA 
Buick Rainer, GMC Envoy, Chevrolet TrailBlazer  85%  USA  USA 
Isuzu Ascender (GM)  85%  JAPAN  JAPAN 
Dodge Viper  85%  USA  GERMANY 
Isuzu i-Series (GM)  85%  JAPAN  JAPAN 
Toyota Sienna  85%  JAPAN  JAPAN 
Dodge Grand Caravan – SWB  83%  USA  GERMANY 
Chrysler Town & Country – SWB  82%  USA  GERMANY 
Chrysler Sebring convertible  82%  USA  GERMANY 
Jeep Wrangler  82%  USA  GERMANY 
Ford Five Hundred  80%  USA  USA 
Ford Expedition  80%  USA  USA 
Ford Explorer  80%  USA  USA 
Ford Freestyle  80%  USA  USA 
Lincoln Mark LT  80%  USA  USA 
Cadillac CTS  80%  USA  USA 
Pontiac Solstice  80%  USA  USA 
Chevrolet Corvette, Cadillac XLR  80%  USA  USA 
Chevrolet Malibu, Pontiac G6  80%  USA  USA 
Cadillac SRX  80%  USA  USA 
Dodge Caravan – SWB  80%  USA  GERMANY 
Toyota Camry  80%  JAPAN  JAPAN 
Toyota Tundra  80%  JAPAN  JAPAN 
Dodge Durango  79%  USA  GERMANY 
Dodge Stratus  78%  USA  GERMANY 
Mitsubishi Raider (Dodge)  78%  JAPAN  JAPAN 
Dodge Dakota  77%  USA  GERMANY 
Chrysler Sebring  77%  USA  GERMANY 
Jeep Commander  76%  USA  GERMANY 
Mercury Montego  75%  USA  USA 
Chevrolet Uplander, Pontiac Montana SV6, Saturn Relay  75%  USA  USA 
Chevrolet Cobalt  75%  USA  USA 
Honda Ridgeline  75%  JAPAN  JAPAN 
Honda Pilot  75%  JAPAN  JAPAN 
Toyota Avalon  75%  JAPAN  JAPAN 
Toyota Corolla  75%  JAPAN  JAPAN 

Poor Honda.
According to the US government, all they need is a measly five percent more to get into the All-American club. They fall short, even though the company has invested millions of dollars in building assembly plants and parts centers across the nation – never mind that they build some of the most popular cars on the road. Given the combination of US and Canada parts, it seems to be a definition designed to keep “Made in the USA” for USA brands. That's changing, and fast: according to NHTSA and CSM Worldwide, import automakers are increasingly bringing their parts with them when they open up new assembly plants. The result is that in the near future, vehicles such as the Honda Accord, Civic, CR-V, Element and others will begin to qualify for that oh-so cherished American Automobile Label Act (AALA) badge.

As if that would boost sales. Ironically, some of the more famous “American” cars are now getting caught in the AALA net. DaimlerChrysler – a German company that owns Chrysler, Dodge and Jeep – has such red white and blue stalwarts like the Dodge Ram or the Jeep Grand Cherokee on the “near miss” list. Not to mention such iconic American rides as the Ford Mustang, which is made of just 60 percent US/Canadian content. So, for all you import buyers out there, the next time you chat up your Yankee-doodle neighbor with the Dodge Ram, kindly point out that, according to NHTSA, your built-in-the-US import is more American than that All-American Ram grille.

MAKE/MODEL  ASSEMBLY  PARTS  STATUS
 
Jeep Liberty  USA  74%  IMPORT 
Dodge Ram  USA  74%  IMPORT 
Jeep Grand Cherokee  USA  73%  IMPORT 
Lincoln Navigator  USA  70%  IMPORT 
Dodge Caliber  USA  70%  IMPORT 
Toyota Tacoma  USA  70%  IMPORT 
Honda Accord  USA  70%  IMPORT 
Honda Civic  USA  70%  IMPORT 
Honda Odyssey  USA  70%  IMPORT 


MAKE/MODEL  ASSEMBLY  PARTS  STATUS
 
Toyota Sienna  USA  85%  DOMESTIC 
Toyota Camry  USA  80%  DOMESTIC 
Toyota Tundra  USA  80%  DOMESTIC 
Honda Ridgeline  USA  75%  DOMESTIC 
Honda Pilot  USA  75%  DOMESTIC 
Toyota Avalon  USA  75%  DOMESTIC 
Toyota Corolla  USA  75%  DOMESTIC 
Honda Accord  USA  70%  IMPORT 
Honda Civic  USA  70%  IMPORT 
Honda Odyssey  USA  70%  IMPORT 



MAKE/MODEL  ASSEMBLY  PARTS  STATUS
 
Ford F-Series  USA  85%  DOMESTIC 
Chevrolet Silverado  USA  90%  DOMESTIC 
Toyota Camry  USA  80%  DOMESTIC 
Dodge Ram  USA  74%  IMPORT 
Honda Accord  USA  70%  IMPORT 
Honda Civic  USA  70%  IMPORT 
Dodge Grand Caravan – SWB  USA  83%  DOMESTIC 
Nissan Altima  USA  65%  IMPORT 
Chevrolet Cobalt  USA  75%  DOMESTIC 
Toyota Corolla  USA  75%  DOMESTIC 
GMC Sierra  USA  90%  DOMESTIC 
Ford Focus  USA  60%  IMPORT 
Ford Explorer  USA  80%  DOMESTIC 
Chevrolet Malibu  USA  80%  DOMESTIC 
Honda Odyssey  USA  70%  IMPORT 
Ford Mustang  USA  60%  IMPORT 
Toyota Tacoma  USA  70%  IMPORT 
Chevrolet TrailBlazer  USA  85%  DOMESTIC 
Chevrolet Tahoe  USA  67%  IMPORT   
 

[PJungnitsch]

Tell that to the tens of thousands of laid off white color corporate head office employees.

There has to be many more supplier jobs than there are head office jobs though, and as far as Canadians are concerned the head offices of GM, Ford, and Chrysler are in the US anyway.

[Snowman]

There is a difference in wages and local economic impact of an assembly worker at a parts manufacture vs. an engineering, accounting, marketing, etc at a corporate office. The title of the thread refers to North America.

[mdxtasy]

There is a difference in wages and local economic impact of an assembly worker at a parts manufacture vs. an engineering, accounting, marketing, etc at a corporate office. The title of the thread refers to North America.

Are the 'foreign' companies not investing in new plants and thus as a result, hiring new employees to run them?  The old outdated unionized shops that are no longer profitable are being shut down....but like it's been mentioned, other companies are investing heavily in manufacturing in the US.  I'd say that's how the economy goes....

[Snowman]

There is a difference in wages and local economic impact of an assembly worker at a parts manufacture vs. an engineering, accounting, marketing, etc at a corporate office. The title of the thread refers to North America.

Are the 'foreign' companies not investing in new plants and thus as a result, hiring new employees to run them?  The old outdated unionized shops that are no longer profitable are being shut down....but like it's been mentioned, other companies are investing heavily in manufacturing in the US.  I'd say that's how the economy goes....

I was referring to the part supply jobs not offsetting the lost corporate jobs. Domestic unionized assembly plants are not unprofitable or antiquated the pension liabilities and corporate misguidance is the problem.

[mdxtasy]

Domestic unionized assembly plants are not unprofitable or antiquated the pension liabilities and corporate misguidance is the problem.

The structure of these shops (like you mention with the pensions and other liabilities) are old, outdated, and unprofitable. 

[safristi]

who are these "WHITE color workers".......... ......and don't the overseas companies have design &engineering and Corporate offices in the US..lots of WHITE/RED/BLUE  COLLAR workers there...........

[UmroAyyar]

Even BMW is going to build X3 in the US now. Mercedes already builds the ML series here.

Japanese have a huge footprint in manufacturing locally, not just selling their products. Our people are getting jobs at these plants and related industries. Cost effectiveness is the main reason behind that, build locally, sell locally.

[Snowman]

Domestic unionized assembly plants are not unprofitable or antiquated the pension liabilities and corporate misguidance is the problem.

The structure of these shops (like you mention with the pensions and other liabilities) are old, outdated, and unprofitable. 

  Please elaborate. GM, FORD, and DC invest billions in North America into their auto assembly plats with state of the age technology.

[mdxtasy]

Old union obligations and relationships with outdated terms that put an organization at a significant disadvantage when it comes to global competition.  Think Delphi...customer base is shrinking as sales struggle, but with high fixed costs....it's tough to compete.