If Toyota spends $1.3 billion dollar on a new truck plant how much of that money is spent on capital equipment, tooling, design, etc from America? In the end, not very much. The plant itself will be designed and engineered in Japan. The assembly line will be designed in Japan with tooling from Japan machine tool firms. The building itself could ever be built with imported structual steel. Sure some construction workers will have jobs for a year or two but nothing long term. When you start to break down the parts that "$1.3 billion invest in the US gets smaller and smaller".
Then we need to look at the truck itself. In the case of the Tundra the head of engineering is Japanese working in Japan. The engine and transmission is designed and engineered in Japan also. So no "invest" in America there again.
Now let's talk about suppliers. So Denso is picked to supply a major system for the Tundra. That system will be designed and engineered in Japan along side the Toyota engineers working on the project. Sure, Denso may build a plant close to the new truck plant to supply this system but again, the tooling for that plant will come from Japan. So the parts are "made in the USA" and count toward NA content on the Tundra but again very little "investment" is made in the American Economy.
Now compare that to a F-150 in which all of the design and engineering "investment" in made in Dearborn. The engine and transmission is designed and engineered by people like Wingsnut.
Then a supplier like Johnson Controls is given a contract to supply the interior. Well the interior is then designed and engineered in Plymouth Michigan at their tech center. The tooling for that interior is designed and built by a machine tool company in say Sterling Heights or Madison Heights. And then put in plant in say Taylor to be shipped to the the Dearborn assebmly plant. Now all of that "investment" is in the American economy.
Then go take a tour of the Dearborn assemlby plant and look at all the tooling and equipment that was designed and engieneered in America to build that F-150. And of course you don't see all the investment to tool the engine plant or transmission plant that also using tooling designed and engieneered and built in America. That's real INVESTMENT! The type of investment that economist talk about as having a very high multiplier effect! That's what drives the economy of our nation! Not a company assembling trucks.
Then we need to look at the truck itself. In the case of the Tundra the head of engineering is Japanese working in Japan. The engine and transmission is designed and engineered in Japan also. So no "invest" in America there again.
Now let's talk about suppliers. So Denso is picked to supply a major system for the Tundra. That system will be designed and engineered in Japan along side the Toyota engineers working on the project. Sure, Denso may build a plant close to the new truck plant to supply this system but again, the tooling for that plant will come from Japan. So the parts are "made in the USA" and count toward NA content on the Tundra but again very little "investment" is made in the American Economy.
Now compare that to a F-150 in which all of the design and engineering "investment" in made in Dearborn. The engine and transmission is designed and engineered by people like Wingsnut.
Then a supplier like Johnson Controls is given a contract to supply the interior. Well the interior is then designed and engineered in Plymouth Michigan at their tech center. The tooling for that interior is designed and built by a machine tool company in say Sterling Heights or Madison Heights. And then put in plant in say Taylor to be shipped to the the Dearborn assebmly plant. Now all of that "investment" is in the American economy.
Then go take a tour of the Dearborn assemlby plant and look at all the tooling and equipment that was designed and engieneered in America to build that F-150. And of course you don't see all the investment to tool the engine plant or transmission plant that also using tooling designed and engieneered and built in America. That's real INVESTMENT! The type of investment that economist talk about as having a very high multiplier effect! That's what drives the economy of our nation! Not a company assembling trucks.