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Old 05-12-2013, 01:08 PM
4,399 posts, read 9,558,858 times
Reputation: 2363


Originally Posted by gregm View Post
Hee, the Accord is the only car built in the u.s.a. To qualify as being Built in the USA. It has 80% of the parts made here. They even export them.

GM(Canada, Japan, S. Korea, China) Ford(Mexico, Japan, China) Chrysler(Europe, Japan, China.)
What are you talking about?
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Old 05-12-2013, 01:27 PM
Location: Exeter, NH
5,447 posts, read 4,669,791 times
Reputation: 6113
Originally Posted by hindsight2020 View Post
Yeah but how much are they getting paid for said labor? "Fair market" wage? According to whom? The Unemployed? *yawn*
If you'd read the cite, you'd have seen that starting wages were $18.40 an hour. That's not bad at all, and hardly taking advantage of desperate unemployed Americans. I'd much rather this plant hire 500 workers getting paid a reasonable wage, rather than 250 workers getting overpaid.

And frankly, I see no reason for taxpayers like my family to bail out GM AGAIN (and ripoff investors, which include many pension plans across the nation, AGAIN) simply to preserve compensation packages that are twice as high as they should be. When company management has pandered to the union to such an extent that it cannot compete and goes bankrupt, the pain should be spread around to everyone--and those who are responsible for the bankruptcy should certainly not be saved by the taxpayer, while those who bought stock (and if you have mutual funds, a 401k and/or pension plan, that's YOU) take the 100% loss.
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Old 05-12-2013, 01:33 PM
Location: Exeter, NH
5,447 posts, read 4,669,791 times
Reputation: 6113
Originally Posted by Tampaite View Post
This is good news but am a cynic. How much kickback aka incentive did Honda receive from state of Indiana..that's buried somewhere in the news..

Job creation in this country is all about incentives and I don't know why a company needs to be paid or given tax breaks if they can find good labour at decent pay rate!!!

The lower labour cost should in itself be an incentive for investment.
Good point. Here's the details I found: "Indiana offered Honda generous incentives of EDGE tax credits, training assistance, and real and personal property tax abatements totaling up to $41.5 million. In addition, the state will provide infrastructure support for water, wastewater, and road improvements of approximately $44 million. This offer was generous relative to packages that have been offered lately by northern states to woo automotive plants." Midwest Economy: Honda and tax incentives

The analyst argues that the taxes generated by the business will pay the state back 1-1/2 to 2 times as much as they spent.

A different source reports $141.5 million in incentives. http://kokomotribune.com/business/x5...ndiana-economy
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Old 05-13-2013, 08:52 AM
28,900 posts, read 48,716,988 times
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Twenty years ago, Alabama was not even on the map in automotive manufacturing. Now it's on the cusp of being in the top three states. Acuras are now being made here. Mercedes has started a third shift. And the parts manufacturers and suppliers keep coming. Even though Kia and Volkswagen make cars immediately outside the state lines in places such as West Point, Georgia, and Chattanooga, Tennessee, both plants were sited to take advantage of the huge number of parts manufacturers that have located here.

That's the operative term: Parts manufacturers. Because while one can rail against state incentives, they typically don't take into account the number of satellite operations that it takes to keep an auto manufacturer. I was peripherally involved in some economic development when Hyundai put their plant in Mongomery, Alabama, by helping Korean suppliers find industrial sites. Let me tell you. A parts plant in a sleepy, Black Belt town can make a world of difference to the local economy.

What's more, the state really stepped up in terms of workers. Alabama has a huge junior college and technical school system that has managed to keep pace with the skills needed by manufacturers. That's why the auto industry in Alabama is accelerating in scope.

Oh, wait. Duh. This is a Lazarus thread.

Last edited by cpg35223; 05-13-2013 at 09:01 AM..
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Old 05-13-2013, 09:03 AM
Location: Central Texas
13,719 posts, read 26,826,857 times
Reputation: 9236
The incentives exist because states are competing against each other. I don't like them either. But it seems like a necessary evil these days. I just hope that the math is good and the forecasts are tested at an appropriate time.

I am happy that Honda will build an Acura in the US in any case. The ILX is based on the Civic so doing this in Indiana makes sense.
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