5th Nov 2010, 10:18

You are correct - wage is only 1 part of the equation. But then again that's not the extent to which car companies invest in operations both domestically and internationally.

Toyota operates plants in the US that:

A: Sits on land Toyota bought from a US Realtor.

B: Uses various pieces of equipment, robots and delivery vehicles built in the US by other US companies.

C: Employs US workers paying their wages.

D: Are taxed just like any other business.

Toyota also operates engineering firms throughout the US that employees high level professionals. They also operate design studios, testing facilities, research and development, and so on.

Toyota is no different than Ford, GM, or Chrysler. As we speak, GM now has two newer Buicks that were heavily designed and engineered outside of the US. The new Lacrosse has a German drivetrain. The interior was designed by their Shanghai studio. The exterior was designed in their Detroit studio. Likewise the new Riviera is an imported Opel built in Germany and sold in China and the US as a re-badged Buick.

Your only argument is that in the end, the final profits go to whatever corporate headquarters of the respective company. The truth is that the overwhelming bulk of the profits made by any auto company is poured back into R&D, plant modifications, re-tooling, employee pay, and taxes. Most of the money you bemoan as going into the pockets of the parent company will have already been spent in the respective operations of that company. In the end what's left is a small fraction of the grand total. Thus in the end your only argument is that you just don't like money going to a foreign country. If that was the case and we never allowed any company with headquarters located in a foreign country to make money, then we would quickly be out on the street, because nobody would be able to afford the products and services we provide globally.