Last week, I noted Paul Krugman’s laughable attempt to misinterpret Toyota’s new plant in Ontario. Donald Luskin points out at NRO
that the Canadian vehicle and parts making sector is actually shrinking
and catches Krugman relying on bad journalism for one the column’s more
sensational quotes. Today’s NYTimes has a letter to the editor that covers some of Luskin’s points and mine.
When a company like Toyota decides to build a $650 million plant,
there are many criteria, such as infrastructure, access to highways and
rail systems, utility costs, tax and regulatory climate and, yes, the
cost of providing comprehensive benefits. The primary reason for the
selection of the Ontario site was its proximity to our existing plant
in the province, which will manage many administrative functions for
the new plant.Toyota is growing its operations all over North
America. We currently have eight new plants or expansions in the works,
including nearly $1.6 billion in upcoming United States investment
alone.And much of this expansion is taking place in Southern
states like Alabama. We opened a plant in Huntsville three years ago,
and have expanded it twice. The work force there has been highly
motivated, well trained and productive. Almost 30 percent of our hourly
team members are college graduates, and 97 percent are high school
graduates.Dennis Cuneo
Senior Vice President
Toyota Motor North America
New York, July 27, 2005
