Toyota to make key hybrid parts in China
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42 Comments
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6
Darrin Flores
Let's make China even stronger.. Yeah, great idea!
2
CHAMADE
NOT so clever, Toyota. Your technologies are not going to be yours any longer. Don't you remember how you did things back in the 60s and 70s?
1
melguy
Another auto manufacturer falls into the Chinese joint venture trap.
2
globalwatcher
Is this a part of deal in exchange of rare earth supply from China to Japan?
Regardless, it is too bad that the key components such as motors and batteries for the petrol-electric hybrid have to be manufactured in China. This is almost like Toyota is approving a heart surgery performed in ill equipped hospital in China.
I am afraid China will eventually steal hybrid technology from Toyota. Toyota has everything to lose and this is a poor business decision done by Toyota management team. Toyota will pay for this mistake in ten years!!
2
some14some
agreed but no choice if Toyota is willing to make China its second home !
1
globalwatcher
@Darrin Flores, if you are in Japan, sooner or later, most of Japanese manufacturing jobs are moving out of Japan. And you may on line to "Hello Work" and "Soup Kitchen". If you are in China, then more job opportunities for you.
3
Mirai Hayashi
Hey Toyota...I have a crazy idea....why don't you manufacture those parts in JAPAN, so it creates jobs HERE instead of China. Haven't you got any sense of loyalty to your own country???
2
globalwatcher
I have a special request to make to PM Noda.
The corporate tax of Japan is the highest in the world. Japan needs a major fiscal tax overhaul and a reform for a private sector and a business sectors.
Japan needs to set up a special task force lead by the Finance Dept to study and create an investment friendly environment, so that the manufacturing jobs are coming back to Japan while the jobs are leaving with strong yen.
0
GG2141
the rare earth angle is a good one. Could be Chinas way of cleverly forcing anyone building anything with an electric motor to do it in China.
However the reason that a lot of companies go overseas is little to do with common sense and more to do with old corporate warriors seeking one last adventure. Quiet a few of the decision makers in corporations go to China and are wowed by their potential partners. Lavish hotels, stunningly sexy translators, huge feasts and banquets to put King Brobdingnag to shame and they sell their country and people down the river in the blink of an eye. (and it often does make short term financial sense)
0
noriyosan73
There is one big star with four little stars on China's flag. Japan will soon be number five, and it won't be long before there will be thirteen stars. Sound familiar? Japan should also increase its cash foreign aid to China. It's in the national budget, so there is no sense in getting anything of value from China from the jobs bill or the foreign aid. "We have met the enemy, and it is us."
-1
Dennis Bauer
It is that way in all industrial countries, it means that japan needs to create jobs in different sectors.
0
naruhodo1
Could it be, that toyota has a new technology which is more effecient in the works. Hybrid is quite old now. Who cares if they steal the technology. And who says they havent already through reverse engineering! Toyota has something better and can guarantee it being produced in japan. China has a very very long way to go to be a market leader/innovator. As ive studied and seen through Apple, being first is a key ingredient for success. 2 or 3 years later and still king of the hill.
1
noriyosan73
It isn't a matter of stealing technology. The black suited execs in Toyota made a calculated, business decision. Follow the money and see where the profits go.
2
YuriOtani
These traitors to Japans working class show their true nature. Like America how can we have an economy without jobs?
0
jforce
noriyosan73: Bingo. It's all about profit. At least they didn't use the March 11 Earthquake as an excuse. Still, I'd like to believe Toyota wants the world to drive Hybrids and having them in China and near India would help sales there and reduce the drain on natural resources??? Umm... positive spin, anyone?
1
NetNinja
*Fictional Dear Daisuke,
Just heard the news you lost your job. Man, hang in there. So they outsourced the whole division eh? Man, that's gotta hurt. My country went through the same thing. I guess in your case Toyota might be a bit worried about delays due to earthquakes.
Hey, didn't the union try to negotiate? Well, don't worry. I still won't buy a Toyota. I really won't buy one now that I know that it's made by the lowest bidder. I thought you had safety problems before but I think you're sure to have more safety problems soon enough.
I still feel bad for you Daisuke. Did you know China snatched up Hummer and Volvo too?
Deep pockets, bro, deep pockets. The economic divide just got a little wider. The bossman is cutting you out for cheaper labor. All those bonuses you used to get.....Poof!! Pipedream now.
There is a bright side though. They might lower the price and make them even cheaper. Bad news, you don't have a job now to pay for it.....sigh.
Here's a good idea. You stop fighting over some rocks in the ocean and maybe they'll give you your old job back.
0
OnlyAGaijin
Just as a Prius Owner looking to get a new model within 12 months - Toyota's has just lost me!
And in some ways I'm looking forward to telling the salesman, who calls me every September - To shove his new model Prius were the sun don't shine!
As an Australian watching Australia's manufacturing industry shrink to be just about zero, this is sad and a big worrying sign that Japan is going down the same road.
Shame on you Toyota
Japanese Companies should still have the moral responsibility - Japanese Jobs 4 Japanese Workers!!
2
lordmanji
I find it peculiar that Asian countries are more hostile to each other than Westerners even though they have more in common with each other. China, Korea, Japan -- it's shameful how they have this problem when Western countries do not.
1
Jan Claudius Weirauch
Moral responsibility of a single business oriented company?! I don't believe it , everybody who runs a real business want's to make money. Some people in Okinawa for example run a businesses which are not really successful but don't have to be because the husband makes enough to pay the open expenses.
I think before anyone blames Toyota or any other major company in the world they should blame the government for not supporting it enough, to stay in the country. (high taxes, corruption etc.)
0
tlldcd
lordmanjiSep. 05, 2011 - 10:10AM JST
I find it peculiar that Asian countries are more hostile to each other than Westerners even though they have more in common with each other. China, Korea, Japan -- it's shameful how they have this problem when Western countries do not.
You are absolutely right yet there are some reasons for it. Take a brief look at the recent 100 years in Asian.
I really hope China and Japan can get along with each other some days. It depends on the politics.
0
borscht
Toyota has loyalty to their shareholders, like all good companies. They want to increase their stock value and by moving to a lower labor cost country (and getting rare earth supplies), they are doing their job. Plus, until 2012, Toyota WILL and has been making those parts in Japan.
Interesting use of the number four; as that may well be how many Japanese jobs there will be for Japanese workers UNLESS Japanese companies begin switching to products that only Japan can manufacture or can manufacture better or cheaper than other countries. What could those products be (minus Hello Kitty crap)? I'm not sure.
-2
ssway
So less parts will be contaminated with radiation? That is a good thing.
0
iratate
Toyota deciding to source production of components for vehicles in China into China is somehow traitorous now? I suppose 90% of the Toyota Camry being made in the US is traitorous as well? Fact of the matter is that no jobs are being moved to China as the components that will be made in China will be used for Priuses made in China. Japanese companies are left with little choice other than to increase local production of products with the yen looking to hit 70 yen to a dollar and how vulnerable Japan is to natural disasters.
Toyota is one of the only major Japanese companies to state repeatedly that they are committed to Japanese manufacturing while Nissan is busy importing cars made in Thailand back into Japan. Toyota is in fact building new and reopening old plants in Tohoku for the sole purpose of maintaining a long-term production base in Japan and trying to revive their devastated economy.
-1
globalwatcher
Japanese business has been very naive and STUPID when it goes to technology partnership with China and Korea.
A good example is LG and Samsung of Korea. You guys gave all competitive edge and a top technology to these companies without any leverage, now their products are rated the best products (HGTV, refregirator, washer/dryer, electric range) in US market. No more chance for Sony, Toshiba, and Panasonic to take the US market back.
Now only thing you have left are "Hello Kitty:, "Kawaii fashion" and Uniqlo. What's wrong with Japanese business management?
When do you learn, no brainer Japanese managers?
0
kaketama
Is this a kind of ramification of too high value of the yen? Didn't Japanese manufactures learn such an act leaks certain amount of technical information, allowing their competitors to gain power? Moreover, outsourcing would lead to more severe recession within the nation, making it difficult for ordinary people to buy an expensive car.
0
globalwatcher
Westerners. I assume you are not including US. The hostility towards China is probably worse in US. I just want to make sure the facts are told streight here.
1
2020hindsights
Well it makes a lot of sense from a high yen point of view.
0
Juan Rodriguez
So, 3rd time is the charm? Makes perfect sense to me, in LA, everyone drives a Prius, geeez this car is like the Volkswagen back in 60's & 70's. Sucks that China will be capitalizing on this project, but can you really blame them or Toyota for that matter? It is all about profit, that's why venture into a business. Others expect loyalty and idealism, that is hardly the case anywhere folks, at least Toyota is not outsourcing all their products, I am sure, just as another reader mentioned before, they are keeping the best for themselves.
0
JapanGal
When you rides the trains here, you see tons of factories, so I do not think things are disappearing. All hype by the media.
0
YuriOtani
Juan Rodriguez, Toyota needs to be punished. Tax the hell out of their Chinese made profits, make it not worth whiled to even run the plants. lousy traitors, China will steal the tech.
1
nstn123
Oh well, that's just how the cookie crumbles.
1
Spidapig24
YuriOtani
Wow what an idiotic response. The fact that Toyota is trying to increase its profits by increasing its sales of cars in the biggest market in the world and you call them traitors. The fact that Toyota is a Japanese company and the money made in China will no doubt come back to Japan, the fact that if they manage to increase sales in China that will do the local (Japanese) industry good by boosting output and may mean more jobs you cant see that in your blind hatred of China. Wow you are a little China phobic arnt you?
-1
Juan Rodriguez
Yuri Otani, I agree about implementing higher taxes, but that won't ever happen. Sadly it is what it is, we just have to either roll with the punches or start boycotting their products.
0
johnnybravo
SSWAY hit it on the nail.
I think Toyota is moving it's productiion else where. Due to radiation contamination in Japan,and shortage of power/electricity..
0
kevinintokyo
Toyoda-san should be ashamed. I agree that China is a Global market and will bring huge business but lets due as they do and build in Japan and export them. It has everything to do with the low labor cost and a strong yen. I am very worried about this country. Like someone posted earlier get ready to visit Hello Work in the near future.
0
just-a-guy
Businessmen has no fatherland! Toyota,VW,GM,Nissan...etc. they were all the same! How can you convince Toyota or else automakers to stay in Japan as Yen is soaring higher and higher? All businessmen works on their own fortunes and the japanese government is no Chinese government that is defiance against world calls for a ffair RMB exchange rate!
0
ExportExpert
It is clearly a business decision, the high yen is the main factor. Anyone who says its traitorous is completely wrong.
Corporate tax in Japan is notoriously high coupled with the extremely high yen make very difficult business condtions for a company like Toyota, they have soldiered on as best they could since the lehman shock and with the earthquake and the fukushima drama its been tough for them and many other companies.
The yen needs to drop so companies can increase production here and not send it off shore, it is that simple. High yen means jobs going out the door and this trend will continue untill the govt gets off its arse.
All you are witnessing is more hollowing out of Japan's industry because the Govt are too blind to see what is happening.
Kiling the golden goose that lays the golden eggs ring any bells?
1
globalwatcher
@ExportExpert, a bunch of amature politicians in the past two decades is now killing Japan. You and I are on the same page on issues here.
0
BessonovYan
May be that is not bad for Japan and China too.
0
globalwatcher
This is a truth about this topic. I went and research this article in Forbes.com
If you want to manufacture products with rare earths, you will almost have to move to China.
That’s Beijing’s master plan. “If we can get Japan’s advanced manufacturing technology of magnetic materials in return, China welcomes Japanese companies shifting their downstream manufacturing of application products,” said Wang Guozhen, quoted on an official Chinese government website in a report on the important Showa Denko deal. The former vice chairman of the China Nonferrous Metals Engineering and Design Institute has clearly suggested that Beijing is using its control over rare earths to force companies to move their manufacturing to China.
Such gouging is a clear violation of China’s commitments as a member of the World Trade Organization.
0
globalwatcher
@Dennis, I could not agree with you more. US has been in the top when it comes to aerospace, medicine and computer software industries. For some reason, Japan is lacking a leader with a macro vision of 20-30 years ahead.
I am a strong believer in medicine as there are no borders for medicine, however many good medical scientists are all leaving Japan to US for a better pay and a career opportunity.
0
PT24881
'Shame on you Toyota Japanese Companies should still have the moral responsibility - Japanese Jobs 4 Japanese Workers!!'
Nothing personal, the smart TOYOTA would not be too stupid to launch such project, if it is not forced to do so as a last resort. Competition intensified on this fast ( albeit reportedly not so fast lately ) growing market. Chinese consumers keep buying but gradually losing faith in this brand due to security incidents / recalls 2 years ago then came the issue of rare earth export restrictions whereby TOYOTA took lead in launching high profile reaction in search of alternative rare earth source amid deteriorating trust ( even hostility ) from country to indivdual fuelled by provocative & selective reporting by the press in both countries. Good luck TOYOTA, Nissan and etc..
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