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Subaru is out for millions in Indiana. The automaker is soliciting the city council in Lafayette for $212 million worth of tax abatements so that it can convert its Tippecanoe plant to accommodate Toyota Camry production.

Among other things, Subaru has pledged to install some $205 million in machinery, along with another $7M earmarked for installation of a new loading dock and stamping press.

The company expects to build 40,000 Camrys next year, with an eye towards a full 100,000 units down the road, while affording about 1,000 additional laborers the opportunity to earn a crust.

[Source: The Associated Press via Mlive.com; CBSNews.com]



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  • 24 Comments
      Paul
      • 8 Years Ago
      the people of indiana should just be thankful that toyota is generous enough to hire assemblers in their state. they should give toyota whatever they request to keep them there.
      • 8 Years Ago
      If this were GM we would all be calling it a bailout or a cry for help. But because it's a foreign co. we call it an investment in the future or something like that. My hero JR would say "send them back to Japland", but he's not here right now. JR's trying to get enrolled in that new GM etch-a-sketch design program. He wants to make 'THE HOMER" a reality! GO-JR-GO!!!
      • 8 Years Ago
      Here is the link to the story from the local newspaper for the Subaru plant.

      http://www.jconline.com/apps/pbcs.dll/article?AID=/20060524/BUSINESS/605240340/1059

      This isn't really surprising. There isn't a company in town that hasn't asked for tax abatements in the last few years. They always get approved.
      • 8 Years Ago
      You idiots posting about how Subaru is getting $212 million need to realize that they're getting out of taxes on $212 million worth of development, not getting a $212 million check written out to them.

      Of course racist morons will take any opportunity they can to start Japan bashing.
      • 8 Years Ago
      that is just pure blackmailing, totally outrageos sums too.

      of course this is normal to Toyota, I think their pure bisnes-idea is that tax payer money pays all the manufacturing costs so every dollar they get selling their lousy cars goes straight into their own pockets.
      gbh
      • 8 Years Ago
      It really has gotten out of hand over the last ten years or so. One of America's greatest contributions to modern business, leveraging tax breaks.

      Unlike sports stadiums, at least these factories provide some economic benefits for the region they locate in. Much like stadiums, if *everybody* tells the proposers "no tax breaks" amazingly enough, the factories and stadiums get built anyway.
      • 8 Years Ago
      I live in Indiana, and the plant is huge when it comes to jobs, so the governor will do anything to keep it here, along with many of the people who live here.

      Its been in the news around here and people ARE supporting it.
      • 8 Years Ago
      From the FACTS posted by #18 CJ,
      http://www.fortwayne-ed.org/tax_abatement2.htm
      It seems like Indiana is giving $212 million of what Subaru will earn in the future. This is money that does not exist today. It is Subaru's income in the future that will not taken away.

      And like previous posters said, Subaru pays employees, and employee salaries are taxed. So the whole operation is still providing taxes to the local community.
      From the abatement explanation web site, it also goes that, if Subaru doesn't build here, no one else will. so there is nothing for Indiana to gain by refusing an abatement, only much to lose. Subaru is building in an area that no one else will.
      Only good will come of this.
      • 8 Years Ago
      So,

      Obviously all of you live in areas where there is no unemployment, property values and their associated taxes are in an appropriate ratio to each other, the infrastructure is running far under capacity, you have great transportation systems, no pollution and an honest government (obviously no-one here from Rhode Island - guess I'll call Farago).

      You must all be Dallas Cowboy fans too.
      • 8 Years Ago
      And it is tax abatements on $212 million in assessed value. The actual cash value will depend on how property taxes change over the term of the abatement. Property taxes are capped at 2%. The figure that was on the news the other night was that the total dollar amount for the company would be around $40 million over 10 years.

      It doesn't really matter. SIA hasn't paid any property taxes in the 20 or so years they have been here. Nobody expected that to change with Toyota coming to town.
      bill
      • 8 Years Ago
      "Among other things, Subaru has pledged to install some $205 million in machinery, along with another $7M earmarked for installation of a new loading dock and stamping press."
      See suckers! thats just it - this eqpt is all japanese made-= you send the parts here and the machines and then you put them together, lego-like-
      • 8 Years Ago
      tekdemon => "racist morons...start Japan bashing." You are inflamed on that point, where I'm reading patriotic citizens asking for a voice in how their tax income is given away. Why shouldn't Japanese industry pay the industrial tax rate from its profit? There is no such liberty in Japan for Delphi or GM or Ford to build manufacturing sites and rewarded by local tax incentives...the Federal government in Japan does not allow that nor is it offered. This is a giveaway that should be scrutinied on the bigger trading issue. When you give away your money, it's gone. Period. The good workers, cheap land, conservative blue collar family values, central location, and low cost of living should be enough incentive to Subaru. They're gouging the issue by making the locals pay for the factory. They should own the factory then, and lease it to Subaru as an alternative. These giveaways are not available in Japan.
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