regfootball

Foreign auto plants received US$3.6 billion in subsidies

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http://www.canadiandriver.com/thenews/2008...-jobs-first.htm

this is what needs to get out to the general public

Washington, D.C. - The U.S. non-profit research centre Good Jobs First said that foreign-owned auto assembly plants in that country have received a total of US$3.6 billion in state and local subsidies, mostly from southern states.

“As elected officials debate aid for the Big Three, taxpayers have the right to know the full extent of government involvement in America’s auto industry,” said Greg LeRoy, executive director of Good Jobs First. “And while proposed federal aid to the Big Three would take the form of a loan, the vast majority of subsidies to foreign auto plants were taxpayer gifts such as property and sales tax exemptions, income tax credits, infrastructure aid, land discounts, and training grants.”

The centre released the following list of funding, which it said is “conservative” and does not account for inflation:

Honda, Marysville, Ohio, 1980 - $27 million

Nissan, Smyrna, Tennesee, 1980 - $233 million

Toyota, Georgetown, Kentucky, 1985 - $147 million

Honda, Anna, Ohio, 1985 - $27 million

Subaru, Lafayette, Indiana 1986 - $94 million

Honda, East Liberty, Ohio, 1987 - $27 million

BMW, Spartanburg, South Carolina, 1992 - $150 million

Mercedes-Benz, Vance, Alabama, 1993 - $258 million

Toyota, Princeton, Indiana, 1995 - $30 million

Nissan, Decherd, Tennessee, 1995 - $200 million

Toyota, Buffalo, West Virginia, 1996 - more than $15 million

Honda, Lincoln, Alabama, 1999 - $248 million

Nissan, Canton, Mississippi, 2000 - $295 million

Toyota, Huntsville, Alabama, 2001 - $30 million

Hyundai, Montgomery, Alabama, 2002 - $252 million

Toyota, San Antonio, Texas, 2003 - $133 million

Kia, West Point, Georgia, 2006 - $400 million

Honda, Greensburg, Indiana, 2006 - $141 million

Toyota, Blue Springs, Mississippi - $300 million

Volkswagen, Chattanooga, Tennessee, 2008 - $577 million

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This article does not add up the subsidies in term of present value of $$, in which case the subsidies would be much higher. Everybody knows value of $27 million 28 years ago is not the same as $27 million today. The sum total of the subsidies is about 3.6 billion in terms of dollar figure. At 10% rate of return this figure is more close to 12.1 billion dollars.

Edited by smallchevy
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Just out of curiosity, what are the state subsidies that GM, Ford, and Chrysler have received for plants in the past?

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Just out of curiosity, what are the state subsidies that GM, Ford, and Chrysler have received for plants in the past?

Those plants have been so much grandfathered that the subsidies might not have existed then. :smilewide:

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So... let's adjust these lavish subsidies to 2008 dollars :

Nissan, Smyrna, Tennesee, 1980 - $233 million :: $610 million

Toyota, Georgetown, Kentucky, 1985 - $147 million :: $295 million

Honda, Anna, Ohio, 1985 - $27 million :: $54 million

Subaru, Lafayette, Indiana 1986 - $94 million :: $185 million

Honda, East Liberty, Ohio, 1987 - $27 million :: $51 million

BMW, Spartanburg, South Carolina, 1992 - $150 million :: $230 million

Mercedes-Benz, Vance, Alabama, 1993 - $258 million :: $385 million

Toyota, Princeton, Indiana, 1995 - $30 million :: $42 million

Nissan, Decherd, Tennessee, 1995 - $200 million :: $283 million

Toyota, Buffalo, West Virginia, 1996 - more than $15 million :: $20 million

Honda, Lincoln, Alabama, 1999 - $248 million :: $321 million

Nissan, Canton, Mississippi, 2000 - $295 million :: $369 million

Toyota, Huntsville, Alabama, 2001 - $30 million :: $36 million

Hyundai, Montgomery, Alabama, 2002 - $252 million :: $302 million

Toyota, San Antonio, Texas, 2003 - $133 million :: $156 million

Kia, West Point, Georgia, 2006 - $400 million :: $428 million

Honda, Greensburg, Indiana, 2006 - $141 million :: $150 million

Toyota, Blue Springs, Mississippi - $300 million :: $321 million

Volkswagen, Chattanooga, Tennessee, 2008 - $577 million :: $577 million

TOTAL :: 4,815,000,000 or 4.8 Billion.

Pretty sure the media would have taken the 3 minutes I took to convert this to '08 dollars.... had this been the domestic plants we were talking about.... AND rounded it up to $5 billion while they were at it.

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Jesus Christ! :banghead:

Those are American workers, working as hard as any Detroit 3 workers to provide for their families. Who cares if they work at a Toyota plant that was awarded a subsidy or tax credit?! And, for comparison purposes, what is the list of subsidies and tax credits GM/Ford/Chrysler have received?

Edited by ZL-1
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Jesus Christ! :banghead:

Those are American workers, working as hard as any Detroit 3 workers to provide for their families. Who cares if they work at a Toyota plant that was awarded a subsidy or tax credit?! And, for comparison purposes, what is the list of subsidies and tax credits GM/Ford/Chrysler have received?

Beside the point, that's what the list is. :P

Seriously, though, the point is that while lawmakers from these states have sided against supporting the Detroit companies, they've had no problems with lining the red carpet for Asian and German companies with big bucks.

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Jesus Christ! :banghead:

Those are American workers, working as hard as any Detroit 3 workers to provide for their families. Who cares if they work at a Toyota plant that was awarded a subsidy or tax credit?! And, for comparison purposes, what is the list of subsidies and tax credits GM/Ford/Chrysler have received?

If a company opened up in the town where you live that built devices that sucked people's homes into a black pit and 75% of the parts for those devices were built on another contintent, would you accept a job working there? The recruiter offers you a good paying job and assures you that these devices are only going to be used to destroy 'other people's homes,' not yours - would that make you sleep better at night? Would you feel right, accepting a paycheque, knowing that what you were helping to build was going to wipe out people's homes in towns just like yours, but in another Province or State?

Just wondering, is all. Because there is no free lunch. All those manufacturing jobs in North America have been lost in a 3:1 or more ratio. (That is, for every 1 job created by an off-shore plant, 3 jobs are lost from domestic companies that used to employ people here.)

But don't worry: keep convincing yourself that those are Americans feeding their families. Take a long, hard look at the Depression the entire world is sinking into and ask yourself, how has this happened?

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