Wednesday
Holy Cow!! Honda is outsourcing......to Indiana.
Hey UAW, just as you keep whining about unfair outsourcing of manufacturing jobs to less developed nations, Honda is planning another $455,000,000 dollar investment in the United States. Does anyone see the irony in this? Our "foreign" auto makers are starting to produce more vehicles domestically than GM and Ford.Click below for details.
http://www.indystar.com/apps/pbcs.dll/article?AID=/20060517/BUSINESS/605170501AID=/20060517/BUSINESS/605170501
~Milt
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The economics are simple to read even for the layman econimist. It costs Honda less to build cars in the country of destination than to build them in Japan and tack on the fuel/transport/shipping charges to an already high-overhead product.
Don't think this is an isolated incident. Just like Huyndai was a newby back in the 80's, China is beginning their manufacturing muscle-flexing. In 5 or 10 years there will be Chinese Auto plants here as well. It is the way of open and free markets. Not a perfect system in terms of level playing field due to differences in labor laws and pay scales,.. but look at India, the massive rate of outsourcing to that country is slowing because even the Indians are demanding higher wages thus negating somewhat the purpose of the outsource in the first place. Things left to the forces of free markets tend to be like water, they find their own level no matter the forces applied to them.
Don't think this is an isolated incident. Just like Huyndai was a newby back in the 80's, China is beginning their manufacturing muscle-flexing. In 5 or 10 years there will be Chinese Auto plants here as well. It is the way of open and free markets. Not a perfect system in terms of level playing field due to differences in labor laws and pay scales,.. but look at India, the massive rate of outsourcing to that country is slowing because even the Indians are demanding higher wages thus negating somewhat the purpose of the outsource in the first place. Things left to the forces of free markets tend to be like water, they find their own level no matter the forces applied to them.
My point is this, and I really didn't have the time to express it more completely earlier, Honda and Toyota are doing what the Big Two can't do right in our own back yard.
This further pushes the concept Will touched on in previous posts that Unions artificially inflate market wages. Toyota and Honda do not have to fight this man-made inefficiency by paying market rates in OUR OWN COUNTRY. Man, I love capitalism.
This further pushes the concept Will touched on in previous posts that Unions artificially inflate market wages. Toyota and Honda do not have to fight this man-made inefficiency by paying market rates in OUR OWN COUNTRY. Man, I love capitalism.
yikes!..., now you've done it,... how dare you question the union ethos of this country! Liberals (er... I mean progressives), are having bulging neck-vein syndrome at your assertion that they are doing more harm than good. I mean, how can this be?... you mean to tell me that due to the Unions having GM and Co. by the short hairs that it creates an Advantage to Honda and Toyota?... Quick, have the NSA wiretap all of Japan, lets pass a law of "no union left behind"... and include a prescription drug benefit for all the screamin' banshees who will howl with rage at your... your..your... delightful and truthful insight as to the wonders of living in a Capitalist world.
"Oh give me a home where the Buffalo roam......"
"Oh give me a home where the Buffalo roam......"
Guys, I am on a kick (Milt already knows this)...my wife is now driving her first foreign car - I am shopping for another for me...doing my part to eliminate the UAW. Of course, they are eliminating themselves!
Will
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Will
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