Truck and Barter

let me start by saying that I know little about the auto industry in canada. What I do know, I learned from the Canadian Government's advertisements about it.

Toyota is moving Rav4 production from Japan to Canada; in Japan, costs are much higher, and the plant currently building the Rav4 otherwise builds most of the Lexus line. The Rav4 was out of place.

But why would Toyota not build a major plant if Canada were such a buy? Because of transportation costs:

Jim Wiseman, a Toyota spokesman, said the main attraction of the Woodstock site was its proximity to an existing Toyota plant, 40km away. The two factories will be managed as a single entity and will use many of the same suppliers....

Toyota is also currently building a truck assembly plant in San Antonio, Texas, and expanding its Camry sedan plant in Georgetown, Kentucky.

A plant in Tijuana, Mexico, opened late last year.

Experts who follow this issue think healthcare expenses are just a minor issue.

Frankly, if I were a Toyota executive, I'd be concerned, not with the average worker, but with the workers I'll actually be competing for. I'd be comparing the marginal productivity of available workers for their total compensation. And I'd take advantage of areas with a high level of out-of-work semi-skilled manufacturing employees, especially when the government agrees to pay their training for me.

What kind of place looks good under those conditions? Well, Ontario!

Unemployment in Ontario is now at 6.7%, but it's 5.1% in Texas and 4.4% in Alabama.

And KPMG has a study comparing costs of automotive manufacturing, basically shows that