Foreign Auto Plants Have Received $3.6 Billion In Subsidies, Mostly from Southern States
By Daniel at 18 December, 2008, 12:26 am
Responding to many queries, Good Jobs First released its summary of
state and local subsidies given to foreign-owned auto assembly plants,
totaling $3.6 billion.
“As elected officials debate aid for the Big 3, taxpayers have the right
to know the full extent of government involvement in America’s auto
industry,” said Greg LeRoy, GJF’s executive director. “And while
proposed federal aid to the Big 3 would take the form of a loan, the
vast majority of subsidies to foreign auto plants were taxpayer gifts
such as property and sales tax exemptions, income tax credits,
infrastructure aid, land discounts, and training grants,” he said.
Honda, Marysville, OH, 1980, $27 million*
Nissan, Smyrna, TN, 1980, $233 million**
Toyota, Georgetown, KY, 1985, $147 million
Honda, Anna, OH, 1985, $27 million*
Subaru, Lafayette, IN, 1986, $94 million
Honda, East Liberty, OH, 1987, $27 million*
BMW, Spartanburg, SC, 1992, $150 million
Mercedes-Benz, Vance, AL, 1993, $258 million
Toyota, Princeton, IN, 1995, $30 million
Nissan, Decherd, TN, 1995, $200 million**
Toyota, Buffalo, WV, 1996, more than $15 million
Honda, Lincoln, AL, 1999, $248 million
Nissan, Canton, MS, 2000, $295 million
Toyota, Huntsville, AL, 2001, $30 million
Hyundai, Montgomery, AL, 2002, $252 million
Toyota, San Antonio, TX, 2003, $133 million
Kia, West Point, GA, 2006, $400 million
Honda, Greensburg, IN, 2006, $141 million
Toyota, Blue Springs, MS, 2007, $300 million
Volkswagen, Chattanooga, TN, 2008, $577 million
Total: more than $3.58 billion
* total of direct subsidies to all Honda facilities in Ohio
** includes about $200 million for expansions of Smyrna and Decherd plants
List does not include joint ventures with U.S. companies
These data, drawn primarily from contemporary media accounts, are very
conservative. They do not account for inflation; some would be worth far
more in today’s dollars. They do not include any estimate of subsidies
granted to hundreds of foreign-owned auto supply companies that have
located in the same areas, virtually all of which were also heavily
subsidized. Finally, they do not reflect later news accounts, which
often place higher subsidy values.
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