No, DiFi, the Competition Is with Canada (and Mexico)
I’ve been meaning to cover the likely closure of the joint Toyota-GM plant in Fremont, CA for some time. But this comment from DiFi is worth a post in itself.
Sen. Dianne Feinstein, D-Calif., led a delegation of state lawmakers who said Thursday that they were exploring the use of stimulus funds among other moves to keep Toyota in California.
"But one of the things California has to come to grips with is that the competition here is Kentucky and Mississippi, and you have this high cost-of-doing-business problem," said Feinstein, who phoned Gov. Arnold Schwarzenegger to talk about Nummi.
The NUMMI (New United Motor Manufacturing Inc) plant was opened as a joint venture between Toyota and GM in 1984. Back then it was a shiny new-fangled plant–the future of auto assembly in the United States. It’s also, notably, Toyota’s only unionized American plant. GM has pulled out of the partnership as part of its bankruptcy which has led Toyota to consider closing the plant altogether. DiFi and the rest of CA’s politicos are scrambling to save the 4700 high-paid union jobs.
And, apparently, DiFi has created a myth for herself that she is competing with (just) Kentucky and Mississippi for these jobs.
To the extent that CA is now putting together a set of incentives to convince Toyota to stay–a model pioneered by southern states–she is correct. And to the extent that Toyota might move the Corolla and Tacoma production to their currently vacant MS plant (which was originally slated to assemble the Prius), she is correct that she’s competing against MS.
But the more likely location for the production currently done in Fremont, CA is–for the Tacoma–Mexico and–for the Corolla–Canada, where factories that already produce those models are currently running below capacity.
In addition, Toyota has plenty of unused production capacity in North America — including factories in Mexico and Canada that make the Tacoma and the Corolla, said George Peterson, president of Tustin consulting firm AutoPacific.
[snip]
Toyota’s sales in the U.S. are down almost 38% this year as the auto industry suffers its worst slump in decades. As a result, the automaker has excess production capacity at its North American auto plants, which can produce more than 400,000 vehicles a year.
In the first six months of this year, the assembly line making the Vibe and the Corolla rolled out only 76,000 vehicles, a 25% decline from a year earlier, while the line making the Tacoma saw an 83% drop in production, according to the Automotive News Data Center. The plant was unprofitable last year, Michels said.
The distinction is critically important because DiFi’s fiction that Kentucky and Mississippi are the problem pretends that the problem here is just wage cost (and, though she doesn’t say it, union labor).
But if Toyota’s moving these jobs to Mexico and, especially, Canada, then it’s not just hourly wage costs that are the problem. It’s health care.
You’ll recall that Toyota made precisely this calculation a few years back, when it decided to site a new Rav-4 factory in Canada because it wanted better education levels than were available in the South, but it also wanted the government health care available in Canada.
We are–as we speak–about to lose another 5000 middle class jobs in this country because our health care system sucks. And DiFi is doing little more than wringing her hands and trying to use stimulus funds rather that fixing the root problem.
It’s film and television production that are moving from California to Michigan.
Oh, that’s out and out arbitrage and wage costs.
But we’re grateful for the jobs…
I thought all the film stuff was moving to Canada.
No, the new destination is MI (in the last year or so). We had a big exciting story on someone locally getting an embroidery job for a movie.
What, you get one movie by Clint Eastwood and a 70s Ford Gran Torino and travel commercials by that dude from Dumb and Dumber and you think you’ve gone Hollywood?
No. There are a bunch more. Only, since I’m a pop culture failure, I forget what they are. But they’re there, really.
well, ya got “hung” on hbo right now that shot its first season in detroit.
So, if someone wants to pick a fight with you, their weapon of choice should be Trivial Pursuits?
Bob in HI
DANGER WILL ROBINSON!!
Do not let her sucker you like that. The woman is flat out a killer.
I’ve got your back, even though I’m hardly a culture vulture.
Produced in 2008 or in post-production:
Street Boss – Bierlein Entertainment
Whip It – Mandate (Drew Barrymore directed movie starring Drew Barrymore, Ellen Page, Juliette Lewis and Jimmy Fallon)
Youth In Revolt – Dimension Films
The Job – Kiki Goshay Productions
Gran Torino – Warner Brothers
All’s Faire in Love – Patriot Pictures
Red and Blue Marbles – Don’t Tread on Red
Tug – TicTock Studios
Prayers for Bobby – Lifetime
The Steam Experiment – Cinepro Pictures
Miss January – Gilbert Films
Offspring – Moderncine
Gifted Hands – Turner Network Television
Butterfly Effect: Revelation – After Dark Films
Dead Heads (Zombie/buddy roadtrip)
Demoted (Comedy with Sean Astin and David Cross)
In Production:
The Next Great Mission – 45 North Productions, Inc.
The Irishman – Sweet William Productions, LLC
Daisy Tells a Secret – One of Us Films, LLC
Stone – Stone Productions, Inc.
Believed to be in production:
Flipped (directed by Rob Reiner, starring Madeline Carroll, Aidan Quinn, Penelope Ann Miller and John Mahoney)
What’s wrong with Virginia (starring Liam Neeson and Jennifer Connelly)
Anticipated:
The Genesis Code – American Saga Productions, LLC
Little Murder – Cine Grande Films
The Bass Master – Fish Whistle Productions, LLC
20 Percent Fiction – Deco Entertainment, LLC
Power of Few – The Power of Few, LLC
Caught in the Crossfire – Caught in Crossfire, LLC
Meltdown – Meltdown Productions, LLC
Jump Shipp – Dot&Cross, LLC
Trivial Pursuits – 3,4 Women Productions
Ye Olde Times (Comedy with Jack Black)
This may not represent the entire list since these came from a couple of different sites and there could be more listings out there. This is more than double the volume of best years in Michigan film. Wish I though some of this would encourage tourism, but much of the work results in snippets which aren’t recognizable as Michigan at the end of production.
Detroit’s abandoned Michigan Central Depot, for example, was used in 2006 by Michael Bay in Transformers; it may not be recognizable to most movie goers.
Ruh roh. Now the Woverweenies are ganging up on me!
New York actor lost in Ypsi. Must have taken the left at Albuquerque.
(Just got in a bit ago.)
Well, the people in Ypsi are pretty much lost anyway, so he’s in good company.
Bob in HI
Gee. DiFi buying into the myth that all the problems in the auto industry can be traced to unions.
Whoever could have anticipated…
DiFi has one of the worst cases of crainorectal inversion I’ve ever seen.
Boxturtle (DINOs. BAH!)
And then there’s Ben Nelson who isn’t sure that he should vote for Sotomayor, bc she might be a “judicial activist” (i.e., may make his gun lobbyists mad).
http://journalstar.com/news/lo…..03286.html
Is it Ben or Bill that’s a C-Streeter too?
Between Baucus, the Nelsons, Feinstein, Reid – it’s amazing anyone would ever vote for a Dem majority. They’ll all revel like dogs in cowpatties over the power that the Dem majority has brought them individually, but damn if they have any sense of responsiblity with that, not even a responsibility to understand and enunciate the issues.
Actually, DiFi’s a pretty walking, talking ad for why Toyota should go to Canada – it’s one thing to deal with a failure of education in “the South” but its another thing to see the repeated shining examples of that failure taking their seats as chairs of committees in the Senate.
From an excerpt of the book The Family, a claim is made that Bill Nelson is a member. Other things I’ve read claim that his wife, Grace Nelson, is or was on the board of directors of “The Fellowship Foundation”.
Thanks- I tend to confuse Ben and Bill.;)
OT – Miliband is again before the High Court in London and his lawyer is again arguing that if the evidence of Binyam Mohammed’s torture is released, the US will sit back and cover up information that it knows about possible future terrorist attacks.
http://news.bbc.co.uk/2/hi/uk_news/8175234.stm
If the US weren’t already a pariah nation, leaving the Brits, Heathrow and the City’s financial center vulnerable to attacks about which the Americans could have forewarned them and chose not to, that would do it. The Europeans would hate us, the Latins would have another reason not to trust us, and Chinese and Japanese would be confirmed in their belief that the West was destroying itself out of pique and that the center of the world had swung naturally back to them.
Making good on that threat, even uttering it, is so desperate and wrongheaded, it’s hard to put into words. If Obama does so, he will confirm that he’s George Bush’s twin, the one who can make a three point shot and drink without getting drunk.
OT – today’s The Washington Times
http://www.washingtontimes.com…..ed-on-him/
What you observe here,
is routine foreign investment analysis that DiFi and her billionaire husband would know by heart. DiFi is being disingenuous about NUMMI and what California is competing against (with a state govt. that is often frozen into non-responsiveness). Educational levels and health care costs are only two variables, but important ones. As you say, NUMMI is unionized, which auto execs consider bad in and of itself.
NUMMI was Toyota’s manufacturing foot in the US market’s door. It now has ready alternatives. The GM joint venture was a kind of Neutral Zone where both companies thought they could learn from the other without directly competing in their most important segments. Toyota was never sure it had much to learn from GM, though in 1984 it wanted greater access to a growing US market and it needed to compensate for Honda’s presence in Ohio. (The Koreans, with their high product quality and now large presence in Alabama, were not then regarded as much competition.)
The investment has been a cul-de-sac for both companies for nearly a decade.
You would be surprised at the amount that Toyota and other japanese manufacturers have taken from their American counterparts. It took way too long for the Big 2.5 to reciprocate by making that transfer a two way street, but do not kid yourself, the whole gig was built on the American model to start with.
I spent a lot of time in smoke-filled rooms helping managers understand the dynamics of in-bound and out-bound Asian joint ventures. Little would surprise me. The Americans gave up more than they knew or thought the Japanese could use. What the Japanese learned they valued, much of it relating to the reach and limits of their counterparts and their technology. But you’re right, conscious cooperation was often stilted and hesitant.
One of my favorite asides was working with a quasi-governmental Japanese firm, the logo on whose stationery was, “Deus ex Machina”.
The pun involving autos and the machines that make them may have been intended. But their self-perception was that their role and power fit the theatrical analogy without irony or sarcasm. Todai graduates with Harvard MBA’s, no doubt.
From Auto123.com, on July 19, 2005, we learn of the reasons for selecting Woodstock, Ontario. The list starts like this:
You would think that with stories like this, both business and unions would get behind major health care reform.
You would, of course, be wrong.
Some months ago, when the healthcare reform issue really heated up, I recall reading that both businesses and unions were indeed in favor of major healthcare reform. But we’re not hearing much from them now, other than SEIU. Why is this? I really don’t understand it either, unless they just don’t want to run afoul of Pres. Obama and plan to support whatever legislation he gets behind. Are the insurance companies just that much more powerful than the rest of the industries? Is there some other reason why they aren’t kicking and screaming? Or are they just happy to place their facilities, via NAFTA, right on the other side of our borders and have U.S. citizens become a nation of paper pushers and servants?
OT – But if I’m reading these filings correctly via the ACLU, it seems that the teenage detainee Mohammed Jawad is going to be released to his home country of Afghanistan:
Al-Hamandy v. Obama – Government’s Proposed Order for Resolution in Jawad Habeas Case (2 page PDF):
Al-Hamandy v. Obama – Government’s Memo Supporting Proposed Order for Resolution in Jawad Habeas Case (14 page PDF)
As I interpret these filings, this also means no US criminal prosecution as the DOJ had been contemplating.
Ok, a final edit. It seems that this is the “proposed” order by Judge Ellen Segal Huvelle, but I’m guessing it is pretty much a done deal.
The way the rules work, when you file a Motion like they have filed, you are supposed to submit a proposed order with it, so that’s all that order is.
As best I can tell, Gov absolutely doesn’t want this to go any further, so probably something similar to that order will go out, but here here’s a bit of what the “other side’ is saying and wanting done.
First, Jawad’s lawyers say that now that the hearings are done they want the court, under its habeas power, to declare that Jawad be released RIGHT NOW.
Gov is saying, well, Court, see, here’s the deal – we’ve got this Congressional statute now that says we can’t spend no money to do anything with these GITMOs until the President gives Congress this 15 day notice and we need a week or so to put together that notice for him to give Congress, and oh yeah, if we were going to take Jawad back to Afghanistan, we need about 12 days lead time on plane requisition and the crews need 5 or so days of training, so don’t order that he be released right now, order that he be released in about 20 or so days. So yeah, maybe the Great Writ doesn’t contemplate keeping people for another month or so after the court has found that there is no grounds to hold them, but com’on Judge, the Dems are in charge of the WH and Congress – it’s not like you can expect competency!
Jawad’s lawyers are saying – oh, but who cares about the military plane – we can get Int’l Red Cross or others to pick him up much quicker than the 20 day military flight lead time then Obama won’t be spending money on the flight if we get red cross or someone else to do it.
Gov is saying (and this cracks me up) that the statute on spending money isn’t really about spending money, it’s spirit is that Congress is supposed to be kept in the loop on what is happening, so the Court still needs to give them that extra time. IT ARISES FROM THE ASHES, THE SPIRIT OF THE LAW (as long as we can use it to keep a kid at GITMO that much longer)
Of course, a “strict constructionist” non-activist court would pretty much have to say, habeas relief means relief now, not three weeks from now, but Gov argues that the court’s equitable powers (since habeas is an equitable remedy) mean that the court can —- participate in further injustice and detention in the name of accomodating Congress (which isn’t even represented before the court).
Then, after going into how the Court can play games with Habeas and delay relief because of the equitable nature of the remedy, Gov then says that none of the other equitable relief requested by Plaintiff can be granted while the court is playing Equity-ball.
Plaintiff says – if you aren’t going to release right this minute, then the Court should be able to oversee and issue orders on the conditions of detention. Gov says, nuh uh, and besides, we’re moving the kid to the lovely place, named after a reptile, that is nicer than where he is now. So Gov basically says – equity allows you to delay the release for 3 weeks, even though you’ve found as of now that we have no grounds to hold, but equity doesn’t allow you to tell us how we can handle him while we have him under this delayed release. That makes no sense.
Plaintiff is also saying, look, I want the Court’s determination made on the record that my client wasn’t an enemy combatant. Gov is using the criminal investigation to block that. What they are saying is, “your honor, we’re being good guys and just going along with the grant of Habeas, not contesting it, but we aren’t saying were weren’t justified in holding him all this time and we have this uber secret uptee doo info on how he might have been involved after all, that the AG is looking into for a criminal case, so even though we haven’t give that info to you, and even though we’ve had the kid in detention for years now, since we are dangling the possiblity that we “might” have something else that’s too secret to share with you right now, and since we are just “not contesting” his habeas relief (as opposed to actively litigating against it – which you might think the last 6 years or so would indicate we had been doing) you, the Court (nanner nanner) are not allowed to make a finding that he’s not an enemy combatant.
Besides, if you did, you know, we’d have that lawsuit problem.
Nicely done Mary!
My reading of the DOJ filings was pretty much like yours, but I lack the legal underpinnings that you have to so snarkaliciously and effectively demolish the DOJ’s rambling whinery. *g*
In any event, I still came to the conclusion that the government was basically throwing in the towel. With bad grace mind you, but towel throwing in never-the-less.
I am shocked, shocked to find bad faith and perfidy at the Habeas Casino.
And in their section on the pending Mohammed Jawad transfer, SCOTUSblog also had this additional tidbit:
Gee, first Lamberth and now Kollar-Kotelly. One almost gets the impression that former heads of the FISC do not trust or believe a word the government pleads. I wonder why that is?
I hope that’s a permanent condition that spreads to all Federal judges including those 4-5 SCOTUS residents of the “government can do no wrong” conservative wing.
And then there’s Bates, and Leon.
@23 – I do think they are pretty much done on sending him back. It’s just going to be interesting to see what the Judge is willing to tack on, and if any of the Dems in Congress get around to deciding how stupid their legislation is.
I’d like to see a court take a shot at it and order release via a red cross flight or whatever, notwithstanding Congress and the appropriations statute and even strike down that element of the legislation. If they do – who is going to appeal? That would be pretty interesting – generally DOJ protects Congressional statutes, but it’s a Congressional statute that ties the President’s hands (and DOJ protects him too) and requires that DOJ refuse to comply with court orders (and DOJ has duties to the court).
It probably won’t happen- everyone is going to be most concerneed with getting people out of there, but I’d like to see it. Esp if Jawad’s lawyers have another flight option.
According to the AP (caveat emptor!), the DOJ dummies are still trying to make a criminal case against Jawad during that remaining 20 days or so:
I guess stupid is more or less a permanent condition.
Is there a way to notify DiFi’s constituency, like a local tv station with public service announcements, local activists, a zip code in her district we can use to gain access? How do we become a burr in her coat?
It’s just a guess, but I’d say Jane already has.
We pick up the story after Jane has requested a meeting through a legislative assistant . . .
Now, apparently, it’s Marcy’s turn.
When you call, be nice the the folks answering the phones. They’ve got a tough job.
How does NAFTA treat healthcare? Is healthcare value a calculated industry subsidy?
a few years ago, the Car manufacturers ( I remember GM doing this) making a submission to The Canadian Federal Government, advising it to Increase spending on Health Care.
It’s a wonder, watching your health care mess from North of the 49th parallel.
OT- Where is this going?
http://www.mcclatchydc.com/was…..72648.html
Worse, Toyota has said that their US operations are currently losing money. (I think that’s because of the economy, mostly.) That means there’s no real incentive for them to keep the NUMMI plant open.
Hello Marcey
The real number is near 7/8k because of all of the suppliers are in Calif. also. They are in the Central Valley a round the Stockton area and this the last thing the CV needs now.
jo6pac