Toyota to build plant in China in investment splurge

Unlike Japanese and American economic prognosticators whose analyses are driven by policy and political considerations as well as economic ones, Toyota has to put its money where it believes it can get the best return. For it China and Mexico make a lot of sense. China is a huge market as well as a good production base, and Mexican-made products can enter the lucrative North American market through NAFTA.

What good is TPP to Toyota? TPP creates an anti-China bloc, and most Asian multinationals have figured out the warts of NAFTA.

Ahhh the benefits of Abenomics.

My next car will not be made in the land of low quality (China). Sucks for you if you have to do otherwise.

Toyota makes record profits by underpaying their workers and then makes capital investments in places where it can exploit even cheaper and less regulated labour conditions. Toyota calls this "Moving Forward".

Which is the "true"path of the profit conscious capitalistic company? Establish a manufacturing plant at home for the charitable benefit of their own country or choose a geographical location that maximizes logistics efficiency?

The Japanese consumer needs to reject cars and products built in 3rd world nations. The Japanese people need jobs as well and outsourcing only makes the rich more money.

While attacking Toyota for increasing production capacity for regional markets like other manufacturers also do, some credit is due for their success in post-2008.

Toyota makes record profits by underpaying their workers and then makes capital investments in places where it can exploit even cheaper and less regulated labour conditions. Toyota calls this "Moving Forward".

If you go to a Japanese car factory in China, the workers will not complain about being underpaid. They earn far more than the national average. They also have better working conditions than most other Chinese workers. They certainly think they are "Moving Forward".

Industry has always followed low labor costs, even in Europe and America in the last century. But after industry arrives, wages and working conditions improve. Wages and working conditions have markedly improved in China over the past decade. In many Chinese industries, wages have doubled. The Chinese nowadays enjoy income and opportunity levels undreamed of in China for the past 6 decades.

Take a walk through Ginza, Akihabara, Omotesando, or Ueno, and look at how many Chinese tourists there are in these places, and how much money they are spending. Their's is the first generation of Chinese ever to be able to afford to do such things, and as their incomes and opportunities continue increasing, they will consume more things which are made in Japan, America, and Europe.

And, as their incomes increase, industry will begin (has already begun) looking for cheaper labor in other places. And in these other places, wages and working conditions are already improving.

If you want all the jobs and money to stay in developed countries, what becomes of undeveloped countries? Do you prefer to condemn them to eternal poverty? Who is being more selfish? Industry? Or you? Industry has done far more to elevate the lives of people in developed countries than decades of government development programs, which simply line the pockets of corrupt politicians. Over the past 15 years, one-fifth of the world's population has been lifted out of poverty, thanks entirely to industry "exploiting" low labor costs.

This does nothing for the people of Japan. The whole world theory is an lie and only the business owners make more profit.

This does nothing for the people of Japan. The whole world theory is an lie and only the business owners make more profit.

Really? Tell that to the shop owners in Tokyo whose best customers are now from China.

If business owners could not make a profit, no one would want to start a business. And if no one wanted to start a business, where would you work?

Yuri

This does nothing for the people of Japan

It is absolutely to do something with the people of Japan. Japanese like cleanness and fresh air. Japanese people like higher wages and better condition. Japan back in 1950s and 1960s were different from Japan Today.

Toyota or Honda is not charity organization. They have to risk and invest billions for making a few millions profits. Japanese population is 123 millions. It is not sufficient for their commercial return. If Japanese population is 1.3 billion, they will come back to Japan for business. Japanese women have to get more babies for making Japanese market is bigger.