By James R. Healey USA TODAY When Japan's Honda Motor announced in 1980 its then-radical decision to build cars in the U.S., the auto business collectively said, "What?" Volkswagen, alone among foreign car companies, was trying limited U.S. production, assembling Rabbit compacts at a Pennsylvania factory, and struggling to get it right. While auto buyers now take for granted that cars bearing European or Asian nameplates often are made in the heart of the U.S., 30 years ago it was a stunning notion. Honda was "the canary in the coal mine," says John Voorhorst, a consultant and retired vice president of auto-parts supplier Denso. "There were a lot of skeptics here" betting that Honda's plant at Marysville, Ohio, wouldn't last long. In fact, that "transplant" factory, which built its first Accord in November 1982, burst a dam. Within a few years Japan's major automakers all were here, cranking out hundreds of thousands of new vehicles a year. Some of the latter-day results are on display at the New York International Auto Show, opening to the public Friday. Honda will display new versions of the Accord and Nissan will unveil a redesigned Altima - both made in the U.S. and among the best-selling cars in the country. Toyota will show a replacement for Avalon, its U.S.-made big sedan based on the U.S.-made Camry. "Once (Honda) had the trial by fire and came through, clearly it emboldened others. It was the opening of the floodgates," Voorhorst says. Foreign automakers "saw that you could come here and not have to have a Volkswagen-esque experience." In the three decades since then, Japanese automakers have continued to open assembly and component factories here, joined by automakers from Europe and South Korea. The industrial immigrants haven't been welcomed by all. A decade ago, about 51% of vehicle and parts manufacturing jobs were clustered in Michigan, Ohio and Indiana, traditional turf of the Detroit Three. They mainly were union jobs filled chiefly with workers represented by the United Auto Workers. Now, not only has the total number of jobs dropped to less than half the number a decade ago, but Michigan, Ohio and Indiana have just 44% of those remaining jobs, according to data from the Center for Automotive Research. Many of the jobs moved to non-union transplant facilities, mainly in the South. The UAW has failed in several attempts to organize transplants. About the time Honda opened the pioneering Accord factory in 1982, the Detroit Three automakers — General Motors, Ford Motor, Chrysler Group — accounted for three-quarters of all new vehicles sold in the U.S. Now, that's down to about 47%. In comparison, the foreign automakers with U.S. factories have about 48% of all new-vehicle sales here, according to industry tracker Autodata. While the foreign brands' strong showing is made up of both imported and U.S.-built vehicles, the robust market-share demonstrates that the companies have set up U.S. factories because America is a lucrative and, for the most part, growing market for them. Today, 10 foreign-based car companies operate 16 big auto-assembly plants in the U.S. and others in Canada and Mexico, building for both North American and export markets. They also now build engines, transmissions and other key components in the U.S. Despite the robust success of transplants, it would have been easy 30 years ago to bet against Honda's success: VW's converted Chrysler factory at Westmoreland County, Penn., already was stumbling toward failure by the time Honda decided to build cars in the U.S. (VW closed Westmoreland in 1988.) The U.S. buyers' love affair with import-brand autos hadn't yet bloomed. The ability of U.S. workers to build a foreign-designed car to the same standards as workers in its home country, and to work for foreign bosses, were question marks in those days. "There was suspicion about the quality of the American workforce" and its ability to perform under Japanese management techniques, recalls David Cole, chairman emeritus of the Center for Auto Research at the University of Michigan. He was a professor of mechanical engineering at the time, just beginning his involvement with the auto research center. He says he assumed Honda would make it as a U.S. manufacturer. But that wasn't universal. Once the American-made Accords arrived at dealerships, for example, some shoppers began looking at vehicle identification numbers, insisting on a car with a VIN beginning with the "J" that meant the car was made in Japan. "In those early days, some people wanted Japan-built Accords, but that lasted about two seconds," says Kurt Antonius, recently retired after 28 years running Honda's U.S. public relations office. He was doing PR at GM when Honda started the Accord factory. He believes that the prejudice against Ohio Accords was undercut when auto magazines "bought both and did comparisons. They were identical." Cole says that Honda's move into U.S. production also broke the Japanese automakers' insular tendencies - which he says was more significant overall than building automobiles here. "Historically, the Japanese tend to be very inward-thinking. Coming here was a huge, huge step. It was a cultural chasm of immense dimension," Cole says. Honda "broke that barrier down." Less than a year after Honda began making Accords at Marysville, Nissan Motor started production at a new factory in Smyrna, Tenn. The factory that opened in June 1983 now is able to build more than half-a-million vehicles a year. It makes Altima sedans, Nissan's rival to Accord, as well as Frontier pickups and Pathfinder SUVs. In 1986, Toyota Motor began production at Georgetown, Ky., where it builds Camry and Avalon sedans. Georgetown can make 500,000 vehicles a year. Toyota, Nissan and Honda have built more U.S. plants since then. Japan's Subaru and Mitsubishi have joined them with plants. German luxury brands BMW and Mercedes-Benz also now have U.S. factories. And South Korea's Hyundai and corporate affiliate Kia both have U.S. plants. And now, again, so does VW. Despite serious corporate anguish, embarrassment and hand-wringing over the Westmoreland failure, it has built a plant at Chattanooga, Tenn., that makes its redesigned Passat. "The decision in the Volkswagen Group to build a factory in the U.S. was difficult, due to what happened at Westmoreland," said Christian Klingler, member of the VW Group board in charge of worldwide sales. He and VW Group global CEO Martin Winterkorn discussed Westmoreland and Chattanooga during a visit to Detroit earlier this year. Klingler said it took years to get over the fear that U.S. workers "wouldn't be able to hold quality." Winterkorn said VW's mistake was trying to build an Americanized car at Westmoreland, when "the American customer wanted a German" car. Though Honda is a big player in the U.S. market, it is a relative pipsqueak globally, stacked up against Toyota and Nissan and VW. Why, then, did Honda have the guts to build a U.S. factory before wealthy, powerful Toyota or cutting-edge Nissan? After all, there was then — and still is — a big currency exchange risk in dollar-denominated markets that threatens all foreign companies, not just Honda. "It became clear that the only way you could isolate from the problem was to build where you sell," Cole notes. But Honda moved first, he says, because it was scrappier, evolved from a motorcycle and small-engine maker into a full-fledged car company over the objections of its home government. It also had put a toe in the water already, building motorcycles in Marysville since 1979. Says Cole, who has spent a career digging into what motivates Japanese and other car companies: "Honda sees itself as the dirty-fingernail motorcycle-mechanic kind of operation, more entrepreneurial than the others." This story is part of a joint series about automotive manufacturing in the U.S. by Cars.com and USA Today. Additional stories will follow next Monday, April 9 here and on USA Today. from KickingTires http://blogs.cars.com/kickingtires/ | |||
| |||
| |||
|
Monday, April 2, 2012
Honda's U.S. factory: 'Canary in coal mine' to dam-breaker
Subscribe to:
Post Comments (Atom)
Archive
-
▼
2012
(7297)
-
▼
April
(760)
- Ford Focus ST Priced At $23,700
- 2013 Ford F-150 Spy Photos: A Mild Cosmetic Update...
- 41-mpg Dodge Dart Aero: Same Great Taste, Less Fil...
- Volkswagen Golf/Jetta CC Not Destined for U.S.
- 2012 Audi A8L W12 Instrumented Test: 0 to 60 mph i...
- Name That Shifter, No. 74
- This Is The Analysis Of The Video That Jalopnik Al...
- 2013 Ford Focus ST Wagon Spied; Still Not Coming Here
- 2013 Acura ILX vs. 2012 Honda Civic: Which Would Y...
- VW Polo R Line Adds Show Without the Go
- 2012 Mitsubishi i-MiEV: Car Seat Check
- Toyota RAV4 EV to Debut May 7
- 2013 Ford Shelby GT500 Crowned World's Most Powerf...
- Daily News Briefs: April 30, 2012
- Next-Gen Toyota Prius Targeted For Stateside Produ...
- There’s a “Huracan” Coming To Your “Urus”
- Cars.com Buzz Index: April 2012
- Morgan 3 Wheeler Being Offered To Eccentric Americ...
- This Weekend’s World Challenge Event Shows What’s ...
- Piston Slap: Crystal Ballin’ the Bling-Free Altima!
- Dodge Dart Gets “Aero” Package To Break 40 MPG
- Junkyard Find: 1990 Ford Escort Pony
- BMW May Takeover Nedcar Plant
- Should the EPA Have Changed the BMW 328's Mileage?
- Trackday Diaries: Two wheels good, four wheels pro...
- At Forbes, Gordon Chang Lacks Adult Supervision
- Gleanings Of The 2010 Beijing Auto Show: Breasts D...
- Review: BMW 335i 6MT Sport Line
- GM And Isuzu Want To Rekindle Old Tie-Up
- What Went Wrong For Peugeot In India?
- GM and Isuzu In Bed Again?
- Hammer Time Rewind: The Seven Deadly Sins
- Most-Read Car Reviews of the Week
- Junkyard Find: Toasty 1965 BMW 700
- Car Collector’s Corner: 1962 Mercury Monterey 4 Do...
- Ed And BS Meet For Cars And Coffee
- Kicking Around The Fisker Football
- This Week's Most-Read Stories
- Mitusbishi Mirage: Yes For Canada, Maybe For America
- Most-Watched Video Reviews of the Week
- Best Selling Cars Around The Globe: Discover Some ...
- 2013 Dodge Dart First Drive: Fiat and Chrysler’s F...
- Cars.com Reviews the 2013 Dodge Dart
- Dodge Dart Aero to Get at Least 41 MPG Highway
- Italian Masterpieces on Display at L.A.’s Petersen...
- Why Torontonians Love The Smart Fortwo
- 2013 Scion FR-S Video
- Capsule Review: Aston Martin V8 Vantage
- Ferrari Plans Hybrid Powertrain
- Biden: “Osama bin Laden Is Dead And General Motors...
- Mercedes Opens First AMG-Only Dealership in Beijing
- Mazda Gives Us Another 1,000 Chances To Buy A Rota...
- Daily News Briefs: April 27, 2012
- Massage-Off: Jag, Mercedes, and Audi Seat Massager...
- Setting Music To Marques
- This Aggression Will Not Stand, Man: Portland Decl...
- Junkyard Find: 1992 Geo Prizm
- For Honda, Next Accord Must be a Hit
- Junkyard Find: 1992 Geo Prizm
- Which Cars Fit Three Car Seats?
- Gleanings Of The 2012 Beijing Auto Show: Seat Intr...
- Confirmed: 2013 Ford Mustang Shelby GT500 Rated at...
- Gleanings Of The 2012 Beijing Auto Show: Car Blogg...
- Go-To Car Music Keep Families in Harmony
- Gleanings Of The 2012 Beijing Auto Show: Toyota Op...
- Coda Withdraws DOE Loan Request Worth $334 Million
- 2012 Audi A1 Sportback First Drive: Two More Doors...
- Lamborghini’s Latest Trademark Application: “Huracán”
- 2013 Shelby GT500; 662 Horsepower, 200 MPH. WHY???
- China Gets Its Dual Clutches From The Borg
- The Acura NSX Concept Gets Painted Proper Sports-C...
- Gleanings Of The 2012 Beijing Auto Show: Victimize...
- Aston Martin Will End Current DBS Production with ...
- What's the Most Affordable Compact Crossover?
- MG’s Icon Concept Unveiled in China [Beijing Auto ...
- 2013 Toyota Land Cruiser: Car Seat Check
- Vellum Venom Vignette: 1991 Toyota Camry (emblem)
- 2013 Aston Martin DBS Spied: 550 hp and One-77 Looks
- Toyota Prices Limited-Edition Tacoma TRD T/X Baja ...
- Is Status For The Smart Or Stupid?
- 2012 Ford Focus Electric to Serve as NASCAR’s Firs...
- Daily News Briefs: April 26, 2012
- 2013 Audi Q5: First Look
- BRB Driving Police Cars
- Time Machine Dilemma: It’s 1973 and You Have Enoug...
- Chevrolet Orlando Finally Becomes Top Small Miniva...
- 2012 Buick Regal GS Automatic Tested: That’s Right...
- Automated-Vehicle Cheat Codes: How to Get the Most...
- Cars.com's 2012 Mock Draft: Top Car Prospects
- Junkyard Find: 1981 Toyota Corolla Liftback Coupe
- Cars.com Reviews the 2012 Volvo XC60
- New NHTSA Website Helps Parents Choose Right Seat
- Toyota Dear Qin Sedan and Hatchback: Don’t You Wan...
- Toyota Yundong Shuangqing Concept: What’s Happenin...
- In Hot Pursuit of Cold Milk: A Look at the New Ind...
- The Continental: Nine-Speeds Are Coming, Legalizin...
- 2013 Bugatti Veyron 16.4 Grand Sport Vitesse Drive...
- Volkswagen Launches China-Only New Lavida [Beijing...
- Jaguar/Land Rover Officially Launches Engineered t...
- Commercial Break: A Quick Example Of A Good “Gen Y...
-
▼
April
(760)
No comments:
Post a Comment