• May 22, 2006

Two states have emerged in the incentive-laden sweepstakes for Honda's next assembly plant in the U.S., Ohio and Indiana.

Ohio, of course, has enjoyed a long history with the automaker, including assembly plants in Marysville and East Liberty, along with a transmission plant in Russels Point and an engine facility in Anna... all within about 45 miles of each other. All-in, Honda employs about 16,000 workers in the state.

Indiana, for its part, would love to have a new $400 million facility within its borders, and Governor Mitch Daniels is hoping to land the project with aggressive incentives packages. Honda is looking at a handful of southeastern sites within around 100 miles of the company's aforementioned Anna engine plant, where drivetrain components will be sourced.

[Sources: The Associated Press via Chron.com; Bouwman.com]



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    • 1 Second Ago
  • 11 Comments
      • 8 Years Ago
      Interesting discussion. I found AutoBlog by searching for more information about the Honda plant and Michigan. Check out Entitlement Mentality for another take on the bidding wars between states that seem to occur every time a major corporation is planning a new site.
      • 8 Years Ago
      #1, I agree with you to a point. It isn't just foreign manufacturers, it is any big business wanting to come into an area. My state North Carolina (politians) have and would sell the tax payer's soul to get a big corporation in the state. And they will give the corporation tax breaks or whatnot to where the state won't see the state get a dime in tax revenue for a decade or so and usually the jobs that are gained are low-income jobs that makes the state image look bad aways. This also happens even on a county levels, saw this first hand when two counties were fighting over a company that wanted to relocate from the western part of the state to the eastern part. One county was going to give them around 10% of the county's land, which is crazy.
      • 8 Years Ago
      Michigan has the absolute best manufacturing workers in North America…possibly the world. Thee knowledge of Automobiles rests in Michigan and it always will in the far distant future. I cannot see how it will help Honda to build anywhere else. Too bad they hate Unions so much or else they’d have the cream of the crop to pick from…that is, from the State of Michigan.
      • 8 Years Ago
      1) "Giving money away to foreign manufacturers doesn't create jobs, it actually destroys them, since the money saved is going overseas."

      I'm not sure what "money saved" you're referring to, but I find the assertion that the money is going overseas to be an interesting one.

      From the information I could find, Honda currently employs 16,000 people in Ohio. That's a lot of money that isn't going anywhere but back into the state's economy.

      Additionally, Honda has 175 suppliers in Ohio that provide $6.8 billion in parts and materials annually -- over half of all North American Honda purchases, and 70% of the company's purchased costs.

      Granted, I'm sure there is money going back overseas. To claim that there's no benefit to the state, however, is ignorant.
      • 8 Years Ago
      Good analysis, Brian D. I have nothing further to add - that I'm allowed to say anway.
      • 8 Years Ago
      Make that three states. Michigan is making a bid too, as is Ontario.

      http://www.daytondailynews.com/business/content/business/daily/0518hondainside.html
      • 8 Years Ago
      Bob:

      The Honda auto plant won't be going to Ontario. Honda has already announced they will be building an engine plant near the existing Alliston facility north of Toronto. The new auto manufacturing plant will be in the U.S.
      • 8 Years Ago
      There should be rules against this. Foreign manufacturers hold a contest to see which state will whore itself for jobs the most (so the politicians can crow about 'creating jobs' when they had to put the factory SOMEWHERE in America). All so that our tax base will be reduced and the poor have to fend for themselves, so someone else can get re-elected and the Nikkei can go up another hundred points. This sucks.

      Let me put it this way: people are going to keep buying cars, even if Honda doesn't build this factory. Giving money away to foreign manufacturers doesn't create jobs, it actually destroys them, since the money saved is going overseas. But our 50 state governors are happy to throw money at Japan, Korea and Germany for the right to say they employed someone. Together with health care costs, this is why American cars sometimes cost more. American companies have built fewer new factories, and as a result haven't cashed in on moronic state governors in the South and Midwest. Way to 'Create Jobs', idiots!
      • 8 Years Ago
      "I can say that the biggest entitlement mentality comes from corporate America. Consider a factory location decision. Nine out of ten times, before a company makes its need for a new plant known, the decision has already been set." OhioDem1 at QuestionItNow.com/blog/2006/05/entitlement-mentality.html
      • 8 Years Ago
      Where's that image from? Pittsburgh is mispelled.
      • 8 Years Ago
      solomonrex, very little in the way of incentives is being thrown at Honda. As a citizen of Indiana I've been following this story closely. The only time the word 'incentives' have been mentioned is to say they are not a factor.

      Honda traditionally hasn't sought out incentives for their factories in the U.S. What they are most interested in is having around 1,000 acres of land ready with a purchase option and Ohio seems to have an edge in that department. With the land locked up in a purchase option if Honda selects the site they can buy it immediately. Given statements by Hondo of being online in 2008 they are on a very tight timetable.

      Other factors Honda is looking at is quickness of the state to upgrade nearby roads, interstate exchanges, rail lines, electricity transmission lines. If the state say promise those upgrades will be done on time that is a huge advantage.

      The 1,500-2,000 jobs at the plant is a drop in the bucket. Given Subaru in Lafayette and Toyota in Princeton it is estimated approximately 2,000 - 3,000 supplier jobs will pop up near the site Honda selects over time. In 10 years estimates are around 6,000 jobs will be added because of that plant. Your tax base argument doesn't hold any water. The supplier jobs are certainly all-American. Honda itself would be hiring American workers to produce the cars.

      Given the layoffs from GM, Delphi, and Chrysler in Indiana some of those workers might be put back to work. We could use the jobs.

      Pat, please don't be so jingoistic concerning the state of automotive knowledge. Many of those Michigan built cars had Indiana parts. The entire Midwest has thousands of good automotive employees.

      The only downside to Honda coming to Indiana is it does NOTHING for economic diversification. We already have the highest percentage of workers employed by manufacturers. That is why the last economic downturn hurt us so badly. A new car plant will not improve that percentage. Still you can't turn down a few thousand high paying jobs.