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Old 07-01-2008, 05:41 AM
 
Location: The Frenchie Farm, Where We Grow 'em Big!
2,078 posts, read 5,649,259 times
Reputation: 1065

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...Build their plant in either TN or AL. I guess VW hates the UAW as well.

VW decision on U.S. plant in July, sorry Michigan - Autoblog
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Old 07-01-2008, 05:49 AM
 
Location: Charleston, SC
5,615 posts, read 12,791,258 times
Reputation: 2534
I have no idea why a company would want to invest there, when they can do it elsewhere for much greater returns...
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Old 07-01-2008, 10:03 AM
 
4,711 posts, read 10,861,826 times
Reputation: 3773
Would somebody turn out the lights at the UAW hall?

Now watch TN and AL get into a free-for-all to beat out the other in "incentives" to land the VW plant.
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Old 07-01-2008, 10:24 AM
 
Location: The Frenchie Farm, Where We Grow 'em Big!
2,078 posts, read 5,649,259 times
Reputation: 1065
That's how they do it. Look at California and Tesla. Huge Incentives!
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Old 07-01-2008, 10:24 AM
 
Location: Londonderry, NH
41,505 posts, read 51,230,061 times
Reputation: 24606
The fact that states are "bidding" for a company is the prime example of how turned around our economy has become. Companies should have to convince a state that the company would provide enough benefits and taxes to be allowed to set up in a state.
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Old 07-01-2008, 10:30 AM
 
Location: The Frenchie Farm, Where We Grow 'em Big!
2,078 posts, read 5,649,259 times
Reputation: 1065
Count Michigan out than!
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Old 07-01-2008, 01:27 PM
 
48,516 posts, read 83,675,284 times
Reputation: 18036
It been like that for decdes really.
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Old 07-01-2008, 01:37 PM
 
Location: RSM
5,113 posts, read 17,422,915 times
Reputation: 1892
Quote:
Originally Posted by GregW View Post
The fact that states are "bidding" for a company is the prime example of how turned around our economy has become. Companies should have to convince a state that the company would provide enough benefits and taxes to be allowed to set up in a state.

this is how you attract commerce and generate jobs and tax revenue. every level of government has been practicing this for a long time. long beach california signed a deal with best buy into the long beach marina that had tax benefits for best buy. el paso texas has been doing this for years attracting tech companies using land deals and tax breaks to attract corporations. theres a huge list of cities, counties, and states that do this and honestly its not a problem for me. it generates jobs in places that want them. detroit would do this if they wanted to. michigan could. but they dont.
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Old 07-01-2008, 01:44 PM
 
Location: Floribama
14,762 posts, read 31,175,948 times
Reputation: 13525
Auto workers in Alabama make about $17 per hour, not a fortune, but a good livable wage. Workers in Michigan would demand $27 per hour or more. It's happened for awhile, but a company can't pay people almost $30 an hour for factory work and survive. The cost of living in Michigan is WAY off balance with the industry there and that's why we're seeing this happen. Frankly, I'm surprised VW isn't looking at Mexico.
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Old 07-01-2008, 02:32 PM
 
Location: The Frenchie Farm, Where We Grow 'em Big!
2,078 posts, read 5,649,259 times
Reputation: 1065
The reason why they're not choosing Mexico is the cost of shipping. A lot of non-auto manufacturers that cater to the US are packing up their factories and moving back to the US. A few companies have moved from China back to the US b/c the shipping quadrupled in two years. The shipping co. increased their payments b/c the price of fuel and created a snowball effect. We all know how that goes when were shopping now! $$$$$$$$
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