Did you understand that lots of foreign cars are in reality built in the U.S? All too often we hear phrases like “Buy American”, however some domestic brands aren’t even stated in the States. On the other hand, many foreign cars such as Toyota, Honda and BMW are made here.
Here’s an example:
- The Toyota Camry is stated in Georgetown, Kentucky and Lafayette, Indiana.
- The Honda Accord is made in Maryville, Ohio and Lincoln, Alabama.
- The Honda Odyssey is made in Lincoln, Alabama.
- The Toyota Sienna is stated in Princeton, Indiana.
- The Toyota Tundra is created in San Antonio, Texas.
Foreign auto manufacturers have plants disseminate around the U.S. For example, BMW makes many of its models in Spartensburg, South Carolina. The plant has the capacity of earning up to 120,000 cars per year, it employs significantly more than 3,000 American workers and it has been producing cars since 1994.
Japanese auto giant Honda has three plants in the U.S. — Lincoln, Alabama, East Liberty, Ohio and Maryville, Ohio. Combined the factories have the capacity of earning 984,174 cars and they employ 12,800 American workers.
German luxury car manufacturer Mercedes-Benz has a place in Vance, Alabama, will make significantly more than 100,000 cars and employs 1,900 Americans.
Japanese car manufacturer Mitsubishi has one plant in Normal, Illinois which could make 240,000 cars and employs 3,160 Americans.
Japanese auto giant Nissan has two plants — Smyrna, Tennessee and Canton, Mississippi that combine will make significantly more than 900,000 cars and employ 14, 870 American workers.
Subaru and Isuzu share a place in Lafayette, Indiana that will assemble 126,240 cars and employs 2,600 Americans.
Finally, Toyota has three factories in the U.S. — Georgetown, Kentucky and two plants in Princeton, Indiana. Combined they’ve the capability to assemble 799,985 cars and they employ 11,600 Americans.
Combined these 12 factories have the capability to make 3,280,416 cars and they employ 49,535 Americans.
The initial foreign car company to truly have a plant in the United States was Toyota. In 1986 Georgetown, Kentucky enticed the Japanese manufacturer ahead by offering about $150 million in tax breaks and other incentives. The plant manufactures Camry, Avalon and Solara models.
Truth be told that over the past 20 years approximately plants owned by Asian and European car manufacturers have sprung up throughout the south including such states as Kentucky, Tennessee, Alabama, Mississippi, South Carolina, Georgia and Texas. The part of the country having an economy that lagged behind the north used the foreign auto makers to boost their economic potential. No wonder then that whenever the government moved to bailout General Motors and Chrysler, Senators and Congressmen from these states cried foul. These were protecting their constituency — Toyota, Hyundai, Volkswagen and BMW.
The thing that was so attractive to Volkswagen, Nissan, Toyota, Hyundai, et al was the fact that the states were willing to pay their particular money to create the infrastructure which was needed to allow for the plants and offer fantastic tax incentives. Moreover these states have Right to Work laws which discourage the development of unions.
What these states discovered is that each job in auto production supports five other jobs in the economy. Auto manufacturing plants attract other industries including steel, tires, rubber, programmers and auto dealerships. So it made a lot of sense for Alabama, as an example, to pay close to $1 billion over a 15 year period on things like tax abatements, worker training and road construction. For the $1 billion investment Alabama lured $7 billion in investments. In the first 1990s Alabama lured Mercedes-Benz to the state with an offer that included $253 million in incentives. What the state got was a place that employs about 1,500 people in the city of Vance.
Volkswagen has invested $1 billion in a place in Chattanooga, Tennessee and BMW has been a fixture in South Carolina because the 1990s and now assembles the X5 and X6 crossover coupes there.
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