VW decision on U.S. plant in July, sorry Michigan
The large disparity between the value of the Euro and the U.S. dollar has given European automakers incentive to build plants Stateside. VW has been looking for the location of its next North American plant, and it appears as though we'll have an answer by July 8. Tennessee and Alabama are said to be the two major candidates for the $788 million facility, which could come online as soon as 2011 and produce 300,000 units per year by 2018. Word from Auto Motor Und Sport is that Michigan is completely out of the picture, and considering the state's history with the UAW and Volkswagen's white collar exit from the mitten, the news isn't all that surprising, though certainly disappointing for the depressed state. There is no word at this point which vehicles VW is planning to build at the new plant, though the German automaker will likely creately a flexible manufacturing facility that can build several vehicles on one line.[Source: Automotive News, sub. req'd]
Reader Comments (Page 1 of 3)
Dan 2:38PM (6/30/2008)
Tax and spend blue state government drives away business.
Imagine that.
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MTU 5.0 2:44PM (6/30/2008)
Sadly, you are correct in this case. Our Governor has no clue how to attract businesses. All she consists of is fluffy talk about "cool jobs" and other BS.
geo.stewart 3:02PM (6/30/2008)
As Newt Gengrich recently pointed out; the result of liberals and crooks running things....
a short sighted democratic party and the UAW? I dont think Michigan was EVER in the running.
With all of the auto mftring success in the South, I dont see anyone outside of the Legacy3 putting anything in Michigan.
Nick 3:04PM (6/30/2008)
As opposed to spend and spend red states.
Dan 3:50PM (6/30/2008)
Unlike the federal government, states can't spend and spend; all states except Indiana and Vermont have balanced budget requirements written into law.
why not the LS2LS7? 4:02PM (6/30/2008)
There's good reasons to stay out of Michigan, that isn't one of them. Remember, manufacturers get huge tax breaks. They are the recipients of this "tax and spend" system.
The real reason to stay out is the UAW. Smart move, VW.
why not the LS2LS7? 4:03PM (6/30/2008)
What are you talking about states can't spend and spend?
California right now is using a "spend and spend" system, under a Republican who calls himself a fiscal conservative.
They just issue bonds to cover the spending. But it's still borrowing.
ronnie schreiber 12:58AM (7/01/2008)
And Granholm is hyping corn ethanol plants when Michigan is the leading producer of sugar beets, which are about 50% better per acre than corn as an ethanol feedstock in terms of energy in and energy out.
I'm not a Republican but if you want to see what 50 years of Democratic politicians working hand in glove with labor unions will do look at Detroit and Michigan. Engler's terms were a brief respite (and Miliken was a RINO) in an otherwise steady downhill slide.
Lithous 2:43PM (6/30/2008)
That state should help fund the Volt. It could be one of the best things for their future in the auto industry.
The Volt could easily sell 300K by 2018.
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azzo45 3:19PM (6/30/2008)
As Newt Gengrich recently pointed out; the result of liberals and crooks running things.... -geo.stewart
Yeah, Newt is a good judge of who the criminals are geo!
Jenny on the Block is not the best Gov.... but she was left a flaming turd pile from Fat-Boy, John Engler (who said he would only stay for two terms).
Gov. John left with a cushy job at EDS & other nice kickbacks from all the government agencies he had his supporters take private. This guy did nothing to attract non "Big 3" car companies to Michigan either.
iQuack 2:50PM (6/30/2008)
Democrat, State of Michigan is a mess.
When will those people ever learn?
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Atomicbri 7:28PM (6/30/2008)
I have a home in TN and let me tell you, Alabama and Tennessee throw the entire state to companies to attract them. Tennessee has no money for their state funded medical program, but some how find all the necessary funds to coax and give tax breaks to big companies. Maybe Michigan gvn't should come down here to check out how things are done! (Oh yeah get rid of the UAW, none of that exists here in the Ol' South)
MM 2:52PM (6/30/2008)
Hey Jenny Granholm, I'm "Blown Away"; every time this state loses an opportunity to for blue collared jobs, I'm blown away that you're still in office.
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mike thomas 2:58PM (6/30/2008)
As long as it's as aesthetically pleasing as the Transparent Factory in Dresden, and I can visit it, I'm down. lol
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OOMPH! 4:22PM (6/30/2008)
ohh man ..i SOOOOO agree!
dkw 3:23PM (6/30/2008)
or "borrow" and spend.
AB LOVER 9:48PM (6/30/2008)
Did anyone actually think MI was in the running? Seriously.
I hope they pick TN. I know Honda and Mercedes are in Alabama but TN has GM and Nissan.
2010 is not far off....I hope they break ground soon!
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azzo45 3:24PM (6/30/2008)
AB: Why does AL & TN gather higher ratings than MI? One state (MI) needs new blood. MI does not equal UAW.
BTW Honda is in OHIO (3 plants) Indiana (New Civic plant?) & Ontario, Canada (Civic & Ridgeline)
Dennis 3:42PM (6/30/2008)
How is it Granholms fault. How is she supposed to smoooth over the fact that the company will have to put their plant in Union territory. I dont blame any company for wanting to stay away from the UAW, its a corrupt garbage organization. At any given moment 50% of the UAW is on an extended restroom break or flaking off somewhere, or bitching about something they should be getting paid for but didnt. Screw the UAW, (United Against Work)
Brad 3:55PM (6/30/2008)
TN & AL offer significant state tax incentives to auto manufacturers. The states as a whole brings in much less money from the auto maker than other states, but there is significant local impact from the plants.
Bottom line is that the states are willing to settle for less tax money in exchange for jobs and increased local impact.
Toyota is also in AL. I'm hoping these governors know Alfa Romeo is looking stateside again as well.