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There are clearly reasons to manufacture cars in the US.
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Exactly what are they?


I would guess that it has something to do with being close to a continental sized market. But you might ask the managers at Honda, for example, who have invested some $7.7 billion in manufacturing plants in Ohio, Alabama, North Carolina and South Carolina (and another is currently being built in Indiana to the tune of some half a billion dollars).
www.hondanews.com/CatID1020?mid=20010212001257&mime=asc

Here are excerpts from an article written back in July:
http://supplyexcellence.com/blog/2006/07/21/could-the-us-be-the-next-low-cost-country/

New trade data indicates that the weaker dollar and strong economic growth are conspiring to increase demand for U.S.-produced products. An article in Wall Street Journal this week indicates that U.S. exports of goods are up 10% this year. Exports of capital goods – such as construction equipment, machinery, tools, and software – are running 15% above last year levels.

Even low-cost countries are now trying to capitalize on the weaker U.S. dollar by snatching up machinery and software from U.S. manufacturers in order to foster their next wave of growth. The U.S. Commerce Department reports that China and Brazil have boosted their purchases of U.S. equipment by 16% and 31%, respectively, during the first five months of this year.
<snip>
These same factors are encouraging foreign businesses to outsource or set up manufacturing in the U.S. The greatest evidence or this trend is within the auto industry. While Detroit is attempting to cure their ills by sourcing more assemblies and parts from emerging markets like China, foreign automakers are moving to set up shop and source supplies in the U.S.
<snip>
A recent Detroit Free Press article reported that Toyota now spends $20 billion annually with North American parts suppliers, an increase of 400% from a decade ago.

DB2
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