Globalization and Camry exports

[killarney_sailor]

Found it fascinating today to learn the Toyota are going to export Camrys from the US to South Korea. I suspect that this may have something to do with manufacturing problems in Japan related to the earthquake/tsunami but maybe not. It really makes a fair bit of sense since those car carriers from Japan and Korea are heading west empty. Do they drive on the left or right in Korea? If it is on the right, it would simply things for Toyota - they could built RHD cars in Japan for Japan, England, Australia, and NZ, and LHD cars in the US for other markets. I think they build Camrys in China for that market, but they could be shipped from US cheaply as well.

[WouldaShoulda]

The United States as a Petroleum (Product) Exporting Country
Posted November 30, 2011 at 3:08 pm Filed in: Economic Security, Energy Security, Oil, Oil Dependence

A fascinating article in today’s Wall Street Journal reports that the United States is slated to become a net exporter of petroleum fuels, for the first time in 62 years since the post World War II economic boom. Although this news represents substantive progress for our energy security and reduction of the trade deficit, the currency is complex, and numerous factors must be considered. Most notably, the exports are primarily in petroleum products, and the U.S. still imports massive amounts of crude.

Still, as recently as 2005, net energy exports would have been unthinkable, as U.S. net oil imports peaked at 900 million barrels. The current situation underscores the transformative economic changes which have occurred since. The Wall Street Journal reports:

“The shift is one of the clearest demonstrations of the diverging fates of the U.S. and emerging market economies. While the U.S. labors under stubbornly high unemployment and sluggish growth, emerging-market economies are growing strongly, bolstering demand for fuel.

U.S. customers have been pulling back in part because an anemic economic recovery has left millions still looking for work. In August, U.S. drivers burned 7.7% less gasoline than four years earlier, when gasoline usage peaked. Production of ethanol made from corn has also ramped up dramatically in recent years, cutting into the need for other fuels.”

Energy Policy Information Center (EPIC)» EPIC Archive » The United States as a Petroleum (Product) Exporting Country

Who knew??

[killarney_sailor]

One of the main reasons for the Keystone pipeline from Alberta to the Gulf was to get more use out of the Gulf refineries that are now working under capacity. A good chunk of the production was to be exported - I assume to Latin America. I think this is how globalization was supposed to work.

[danjarch]

Originally Posted by killarney_sailor

Found it fascinating today to learn the Toyota are going to export Camrys from the US to South Korea. I suspect that this may have something to do with manufacturing problems in Japan related to the earthquake/tsunami but maybe not. It really makes a fair bit of sense since those car carriers from Japan and Korea are heading west empty. Do they drive on the left or right in Korea? If it is on the right, it would simply things for Toyota - they could built RHD cars in Japan for Japan, England, Australia, and NZ, and LHD cars in the US for other markets. I think they build Camrys in China for that market, but they could be shipped from US cheaply as well.

According to a customer of mine, who is high up in Nissan, it's got little to do with the tsunami. Nissan is moving more of it's production to the US and Mexico as well. Not building new factories yet, but planing to run more shift at existing ones. Again, according to him, it's got more to do with the exchange rate. A weak dollar and strong yen are destroying profits.

[SloopJonB]

Originally Posted by killarney_sailor

Found it fascinating today to learn the Toyota are going to export Camrys from the US to South Korea. I suspect that this may have something to do with manufacturing problems in Japan related to the earthquake/tsunami but maybe not. It really makes a fair bit of sense since those car carriers from Japan and Korea are heading west empty. Do they drive on the left or right in Korea? If it is on the right, it would simply things for Toyota - they could built RHD cars in Japan for Japan, England, Australia, and NZ, and LHD cars in the US for other markets. I think they build Camrys in China for that market, but they could be shipped from US cheaply as well.

This is nothing new - Honda was exporting Accords to Japan from Canada back in the last century. If I'm not mistaken, that BMW plant in Alabama was exporting to Germany some time back as well. The auto industry is at least as global as electronics (and T-shirts )

[erps]

So are there Germans and Japanese complaining about cheap labor in the U.S. taking their jobs?

[killarney_sailor]

Originally Posted by erps

So are there Germans and Japanese complaining about cheap labor in the U.S. taking their jobs?

I would imagine they are. I know that German carmakers have moved a lot of jobs to the eastern parts of the EU where wages are much lower. With labor mobility BMW et al are probably saying that they will have same eastern European worker in Germany or in Hungary, just cheaper in the latter.

[SloopJonB]

Originally Posted by erps

So are there Germans and Japanese complaining about cheap labor in the U.S. taking their jobs?

Probably although I think the Germans blame it on the Turkish "guest" workers. They seem to occupy somewhat the same employment position as illegals in the States, although they ARE legal.

[WouldaShoulda]

Originally Posted by SloopJonB

They seem to occupy somewhat the same employment position as illegals in the States, although they ARE legal.

That actually makes all the difference in the world to me!!

[jackdale]

Originally Posted by SloopJonB

The auto industry is at least as global as electronics (and T-shirts )

It has been for years.

I remember in one of the textbooks that we used in grade 11, there was a picture of a Ford product indicating the source of the various parts. The one that stuck out for me was the Pirelli tires from Ireland.