Toyota Motor Corp. manufacturing executives have scouted three sites in Michigan and will visit two more, signaling the state has emerged as a serious contender for a new engine plant.
But one of the company's key concerns is how a Toyota plant in Michigan would be perceived -- as an affront to Detroit's automakers and their employees, or as a gesture to bring manufacturing jobs to a state that is losing them fast, according to people familiar with the company's deliberations.
Gov. Jennifer Granholm is lobbying for a Toyota plant in the hopes that it would send a message that the state is still an attractive candidate for manufacturing investment.
Toyota, the world's richest and second-largest automaker, is in a delicate position.
"Whether it's fair or not, they'll get a lot of blame for what's happening at Ford, GM and Delphi," says Sean McAlinden, vice president at the Center for Automotive Research in Ann Arbor.
Toyota executives insist they are not the cause of the troubles besetting Detroit's automakers -- they say they have different clients, and surveys show most Toyota customers cross-shop its vehicles against other import brands.
But Toyota officials are keenly aware that the company generates more than half of its profit in a country whose domestic industry is losing market share and struggling financially. As the biggest foreign player in the U.S. auto market, Toyota stands out as a lightning rod for protectionist anger.
"What better gesture can they make than to put a plant in one of the states hardest hit by the high level of competition and which also has a well-known Democratic governor?" McAlinden said.
Aside from the political considerations, Toyota is greatly tempted by Michigan's wealth of skilled trades workers -- experts in repairing machinery, industrial electricians, toolmakers and others with specialized skills.
Michigan boasts more than 180,000 skilled trades workers -- more than the seven largest Southern states combined.
On the other hand, Toyota does not want to tangle with the United Auto Workers union -- a sentiment felt most strongly by the automaker's North American managers.
But one of the company's key concerns is how a Toyota plant in Michigan would be perceived -- as an affront to Detroit's automakers and their employees, or as a gesture to bring manufacturing jobs to a state that is losing them fast, according to people familiar with the company's deliberations.
Gov. Jennifer Granholm is lobbying for a Toyota plant in the hopes that it would send a message that the state is still an attractive candidate for manufacturing investment.
Toyota, the world's richest and second-largest automaker, is in a delicate position.
"Whether it's fair or not, they'll get a lot of blame for what's happening at Ford, GM and Delphi," says Sean McAlinden, vice president at the Center for Automotive Research in Ann Arbor.
Toyota executives insist they are not the cause of the troubles besetting Detroit's automakers -- they say they have different clients, and surveys show most Toyota customers cross-shop its vehicles against other import brands.
But Toyota officials are keenly aware that the company generates more than half of its profit in a country whose domestic industry is losing market share and struggling financially. As the biggest foreign player in the U.S. auto market, Toyota stands out as a lightning rod for protectionist anger.
"What better gesture can they make than to put a plant in one of the states hardest hit by the high level of competition and which also has a well-known Democratic governor?" McAlinden said.
Aside from the political considerations, Toyota is greatly tempted by Michigan's wealth of skilled trades workers -- experts in repairing machinery, industrial electricians, toolmakers and others with specialized skills.
Michigan boasts more than 180,000 skilled trades workers -- more than the seven largest Southern states combined.
On the other hand, Toyota does not want to tangle with the United Auto Workers union -- a sentiment felt most strongly by the automaker's North American managers.
![[;)]](/images/smilies/wink.png "Wink [;)]")
