Sometimes it’s easy to forget just how small our world has become – globalization and an incredibly interconnected world economy have made it practically impossible to be either self-sustaining or economically isolated. This is particularly true for the automotive industry; every company has to grow beyond what yesterday’s world could provide. This progressiveness is necessary for long-term success.
Honda and Toyota are often regarded as a typical “foreign” company that export products into the United States, but, really, these companies have become an important part of the American economy, creating literally hundreds of thousands of American jobs and investing billions into the U.S. financial system.
The facts about Honda:
- 7 Honda factories in America
- 13 Honda factories outside of the U.S.
- 21 Toyota factories in America
- 12 Toyota factories overseas outside of the U.S.
Honda and Toyota have created about 370,000 American jobs each, and have contributed $18 Billion and $17 Billion into American wages, respectively.
Not only have these typically “foreign” companies been integrated into the U.S. domestic economy, but America’s own have also become vital parts of markets overseas in all areas of the world.
- 25 GM factories in America
- 38 GM factories outside of the U.S.
- 14 Ford factories in America
- 11 Ford factories outside of the U.S.
GM and Ford have created 90,000 and 152,000 jobs outside of the U.S., respectively. Both of these companies have actually fared better in the rest of the world than in America; 6 out of every 10 cars sold by GM are sold in other countries, and about 60% of Ford’s gross sales ($120 billion) are made overseas as well.
With all the B.S. going down in Washington nowadays, it’s up us to be educated on how the world works, including what the auto industry is really like. If we want to be financially competitive and progressive in the future, we’ve got to embrace the fact that globalization and the integration of economies is here, and it’s here to stay.