Why are they building new US car plants?

I think that there are also tariff benefits. If I recall correctly, the tariffs are higher on complete Japanese autos than on unassembled Japanese-made parts or on raw Japanese steel.

 

I agree with most of the answers.

I think it is a number of things. I suspect the Japanese are assuming that the US domestic manufacturers are eventually doomed. US manufacturers have no competitive automobiles and Peak Oil means that the market for light trucks will contract back down to the commercial/farm-only market that it was in 1960, and Honta/Toyota are so far ahead in desirable fuel-efficient cars.

In 20 years Honda or Toyota will pick up the F-150 plant and design and brand as GM & Ford USA go under and DaimlerChrylser becomes Daimler Motors. GM/Ford Europe may be bought out by the nationalized European companies in fear of Asian domination.

Plants in the USA ensures that no currency devaluation will get in the way of their engineering-based termination of the US-based car industry.

China is set up so that all foreigners will eventually get screwed by their domestic competitors, with high tech proprietary knowledge evaporating.

Only unknown is why USA instead of Mexico. Ford is emptying out the USA plants, and soon Toyota/Honda cars will be more American (in manufacture, not design) than

 

why hasnt anyone considered the possibility that the japanese automakers want to create jobs in the markets that they target? like a goodwill/image conscious sort of thing. im sure they would get some flack if their cars were being made with cheap labor in mexico but sold in the usa.

 

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As far as China,India, may be cheaper but more oppresive /brutal gov;
things can change but past & present have to factor in.

A recent Gannett Co newspaper had an article about GM losing sales again, party it mentioned gas milage issues[6-2-06];
Headline says much''Toyota ,Honda soar along with gas prices''



I like my 1995 GM old Oldsmobile;
too bad that good product doesnt seem to help the stock.

 

Does Japan have any land left to build a plant like this?

 

My answer to the thread title:


After reading these reply's, I have concluded that there are some smart cookies here and I realize that I do not have a clue.