Foreign Auto Plants Have Received $3.6 Billion in Subsidies, Mostly From Southern...

Foreign Auto Plants Have Received $3.6 Billion in Subsidies, Mostly From
Southern States

WASHINGTON, Dec. 12 /PRNewswire-USNewswire/ -- Responding to many queries,
Good Jobs First today 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.

Good Jobs First is a non-profit, non-partisan research center promoting best
practices in economic development and smart growth, based in Washington, DC,
with offices in New York and Chicago.

SOURCE Good Jobs First

Greg LeRoy of Good Jobs First, +1-202-232-1616, ext. 211