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Subaru invests $400 million in Indiana plant

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7 Comments
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I want a BRZ!

0 ( +0 / -0 )

Wouldn't it be nice to hear some good news like this in Japan?

-1 ( +0 / -1 )

I don't get it. Why do Japanese carmakers invest in plants in the US? It's not like the US is China. Labor cost is very high, so I can't understand this logic.

-2 ( +0 / -2 )

Alex, labor costs in the U.S. are probably no higher than in Japan.

3 ( +3 / -0 )

Unskilled labor costs are still pretty cheap in the U.S., especially in non-union states, and will remain so until the baby-boom generation dies off and the current generation gets more educated and has fewer kids. Regardless, Japanese automakers still exercise voluntary export restraint, and are subject to very hefty protectionist tariffs, so putting plants in the U.S. would still be the most cost-effective route to take, even if labor costs were higher.

0 ( +1 / -1 )

US people love to buy inexpensive Japanese cars made in USA. It wants to make left side handle cars for USA. Japanese automakers use robotic gadgets. (Not Ford or GM). Also they train workers as Robot technicians. Robots are controlled by computers. Labor cost is lower than Japan. Indiana? They even train for computer operations.

0 ( +2 / -2 )

All the parts for these cars will come from Japan, so the Japanese economy still benefits regardless of where the automotive factories are built.

0 ( +0 / -0 )

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