[net.auto] Summary of thots on American cars vs. imports

stanwyck@ihuxr.UUCP (Don Stanwyck) (05/14/84)

The following are the replies I received in response to my request for
information on how people felt about U.S. dealers (and press) calling
Canadian built cars "domestic models".  In particular I called attention
to the fact that all of the mini-vans sold by Chrysler/Plymouth/Dodge
are Canadian products imported to the U.S.

As can be read below, many people called my attention to the fact that
many "imports" are actually domestics (Honda, VW, & Nissan all assemble
and even build totally some vehicles here), and many domestics have
foreign subassemblys.

The replies below are verbatim, simply appended to each other with a line
inserted between each response.  Grammer, spelling, and other related
issues are the responsibility of the authors, whose identitys have been
removed.
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I always wondered what to call my US built VW rabbit.  The wall
street journal lists VWs and Hondas assembled in the US in thier
production figures for american cars, but I have no idea what it
does with big-4 cars built elsewhere.  VW did a
survey of owners on what they thought of it, asking questions like
"do you believe that most of the parts for your car were
manufactured in a) US, b) germany, or C) elsewhere.  (I believe that
the answer is C).  I have heard that most of the US manufactures
couldn't comply with the infamous domestic content bill pushed by
the UAW.  It just goes to show that national boundaries don't mean
much in business these days.
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if my name were "Running Deer" I might feel an obligation
to buy a "Native American" car. (whatever *that* is, as you point out)

if my name ended in 'i', I'd consider Italian cars.

But it's not. It's "<<germanic origin name>>", so I drive ein Auto von
Deutscheland.

maybe this belongs in net.auto.roots ?
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I agree with what you said.  The bumper sticker makes no more sense than
the "Hungry?  Eat an environmentalist" one.  Here's another thought:  Look
to see where the profits go - e.g., in the case of either foreign or domestic
cars, some of the money goes to domestic sales, parts, repair
organizations, so that's "good for the US."  The foreign-built, US-sold car
is somehow a bad situation in terms of manufacturing dough, because it
benefits foreign workers but US corporations - what profit there is in the
US doesn't go to (what we like to think of as) the blue-collar worker, but
rather to the investor.
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There is a special arrangement between Canada and the U.S. which allows
auto parts and finished cars to cross freely without duty or taxes.
It turns Canada and the U.S. into a single country for the purposes
of manufacturing cars.

Last I heard, the U.S. was getting the better part of the deal.
Canadian manufacturing accounted for a smaller percentage of the total
sales than Canadian sales were a percentage of Canada-U.S. sales.
And Canadian-built cars would be sold in the U.S. for less than
they were in Canada.

I can understand why the U.S. is concerned about the importation of
Japanese cars, since there is a very large imbalance in the trade.
But this simply isn't true of Canada-U.S. car manufacturing.

Part of the reason for the existence of auto manufacture in Canada
is the insistence of Canadians on having some of the jobs generated
by the products they buy.  How can you object to this when the U.S.
is suggesting exactly the same thing to the Japanese manufacturers?

I find that some Americans feel extremely protective of American jobs
and profits whenever some other country manages to sell large quantities
of anything in the U.S., yet complain about restraint of free trade
whenever any other country tries to do exactly the same thing to
American products for exactly the same reasons.  I hope you are not
one of them.
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Yes, we should be equally concerned about "American" cars which are really
Canadian (as you pointed out), and also aware of "Japanese" cars which are 
really American (e.g., some Honda Accord four doors, some VW Rabbits).  
I believe that the latter are assembled in the US with at least some
of the parts manufactured overseas, but US manufacturers also build 
subassemblies outside the country (Canada and Mexico).

American auto makers and unions have to unite to produce higher quality
cars at lower prices in order to be competitive with the Japanese on
a free trade basis.

The current 'voluntary' import quotas raise the average price of Japanese
cars sold here by about $2000 (I've seen even higher estimates).  This
comes from higher wholesale prices that the Japanese manufactureres can
charge, way over sticker prices that the dealers can charge (often $1-2K),
and the mix of vehicles imported: more luxurious models, more factory
and dealer 'options' which are always there.  This is billions of extra
dollars that the American consumer pays to the Japanese manufacturers
and Japanese car dealers every year.  And what does America get for it?
An excuse for Detroit to raise their prices higher than they should be
in a competetive market, higher paid Detroit executives, and higher
gasoline consumption (because the Japanese send over fewer of the cheaper,
high mileage cars).

(Maybe we should replace the quotas with a duty of $2500 and give the money
to the US government instead of the Japanese.  Think of what we could knock
off of the national debt. :) )
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Don't forget that many "American-made cars" include a number of
foreign-made PARTS.
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I tend to agree about the UAW.  Their wages seem so high in comparison
with workers in other industries, when skill is taken into account.
But they aren't due all the blame.  I might be willing to pay a bit more
for a car manufactured domestically, in the name of supporting the local
economy and all that, if I could get what I want. (Actually, I have a
US-assembled Rabbit; wonder why people still consider it a foreign car?)
But the U.S. automakers seem to have a different perception of where the
design money should be spent, and different perceptions of what is
desirable in a car, than I have.  The result is that I've always been
thoroughly unimpressed with their design.  They may be improving,
and I'll look at American cars again in a couple of years when I'm
shopping again.
The other problem is that I can't stand most car salesman.  And the
dealers for american manufacturers seem worse.  A small part of the
reason I felt happy about buying a rabbit is that the salesman treated
me like I had a small bit of intelligence.
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Yes, we should be equally concerned about "American" cars which are really
Canadian (as you pointed out), and also aware of "Japanese" cars which are 
really American (e.g., some Honda Accord four doors, some VW Rabbits).  
I believe that the latter are assembled in the US with at least some
of the parts manufactured overseas, but US manufacturers also build 
subassemblies outside the country (Canada and Mexico).

American auto makers and unions have to unite to produce higher quality
cars at lower prices in order to be competitive with the Japanese on
a free trade basis.

The current 'voluntary' import quotas raise the average price of Japanese
cars sold here by about $2000 (I've seen even higher estimates).  This
comes from higher wholesale prices that the Japanese manufactureres can
charge, way over sticker prices that the dealers can charge (often $1-2K),
and the mix of vehicles imported: more luxurious models, more factory
and dealer 'options' which are always there.  This is billions of extra
dollars that the American consumer pays to the Japanese manufacturers
and Japanese car dealers every year.  And what does America get for it?
An excuse for Detroit to raise their prices higher than they should be
in a competetive market, higher paid Detroit executives, and higher
gasoline consumption (because the Japanese send over fewer of the cheaper,
high mileage cars).

(Maybe we should replace the quotas with a duty of $2500 and give the money
to the US government instead of the Japanese.  Think of what we could knock
off of the national debt. :) )
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-- 
 ________
 (      )					Don Stanwyck
@( o  o )@					312-979-3062
 (  ||  )					Cornet-367-3062
 ( \__/ )					ihnp4!ihuxr!stanwyck
 (______)					Bell Labs @ Naperville, IL