There is an enormous cost associated with rebuilding an old plant into a state of the art manufacturing plant. The reality is that other nations are willing to put up millions upon millions to lure US auto companies into their country. An example of that is the Ford Plant in this video was shot in 2007 and shows the absolute state of the art auto plant.
I’ve tried to nail down the exact subsidy amount but it’s hard to do. The state and the country are paying for all the electricity, the land, 12 years of exemption from routine taxes and more. The number is well over $200 million. Watch this video and see the future if we help them build the damn plant. GM is also subsidized in Brazil. All of this, including my stats above, are from 1999 news reports.
9 years. That’s how long it takes to build the plant, train the workers, debug the systems and go into full production. 9 years later Ford’s line is moving at high speed. The first objection I will hear is that the UAW won’t cooperate. Sure they will. They’ve already taken wage cuts, that when fully implemented, put them within $2 per hour of the non-unionized import plants.This new style plant helps them compete on par with the imports and maintain their wage scale because they’ve helped lower production cost for the company at the same time. It’s the kind of thing that can be negotiated. No need to try now. No Capital.
These are the kind of jobs they need to produce for the future. Here’s where the cost of production plumets and the skills of the works rise. It can be done. There just has to be the capital for it. I wish I knew the amount of capital Ford put into this facitity. It would give everyone a frame of reference.
Honda and the imports have all received subsidies from the states they are in and have built newer, more efficient plants. Subsidies. Interesting word with a dramatic impact on economics.
Sorry the video isn’t embedded but it’s set so I can’t download it.