Analysts: Michigan Unlikely To Get New VW Plant

analysts michigan unlikely to get new vw plant

A spreadsheet of analysts hanging with The Detroit News all agree with TTAC's Best and Brightest: Michigan is the least likely [s]place on Earth[/s] of the three states VW's considering for its new U.S. plant. Hello? Bis morgan? Didn't anybody notice the fact that Volkswagen NA ALREADY LEFT DETROIT? Anyway, for some strange reason– something to do with labor costs and work rule flexibility– unionization seems to be hamstringing MI's chances of landing the gig. "That's the big risk of coming to Michigan or anywhere in the north," says Aaron Bragman, an analyst with Global Insight. "A lot of companies have wanted to avoid" the UAW. (For this he gets paid?) IRN's VP of auto forecasting says Alabama is the likely front-runner, followed by Tennessee. Erich Merkle fancies 'Bama's chances, citing the success of Mercedes-Benz production and the "German supply base that's already pretty well-established." Ultimately, the decision between the two right to work states will come down to the [s]bribes[/s] incentive packages each state offers VW.

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  • on Apr 26, 2008

    "The War For Southern Independence devastated the South, while the North became even more prosperous. It took almost a century for the South to just get back in the race, and in general it still has a way to go." The Civil war did devastate the south, however they were far behind the north before the war. They had little industry and even the cotton gin was invented by a northerner.

  • FromBrazil FromBrazil on Apr 26, 2008

    Hey guys? Like in any other continent sized country, this goes on down here, too. Except we have some dumb ass pols trying to stop the so-called tax credit war between states. If this happens, guess who loses? And that coming from a guy who lives in a state that could be likened to a northern American state, a rich one (though in Brazil the richer states are in the south). Long live tax wars!! It helps the poorer guys and ultimately helps to balance out wealth distribution. Anyway, what exactly does a tax break mean on an industry that otherwise would never grace these lands if such "tax break" were not given? A tax break only happens after an industry is instaleed if it's never installed such a break is like political bullshitting...words tossed into the wind.

  • Cueb3 Cueb3 on Apr 29, 2008

    My bet is on Limestone County, Alabama. Right in the middle of suppliers, near Brown's Ferry nuclear plant AND the Tennessee River. A very highly educated, hardworking workforce (Huntsville is no hick town!) plus a very nice environment. I can't harp much about offering incentives. Tennessee gave away the bank to land General Motors' Saturn plant, then let them import their workers from out of state GM plants. At least Alabama hasn't been as brain dead as Lamar Alexander!

  • Kg in atl Kg in atl on May 05, 2008

    Alabama does receive more in federal dollars back than they pay in as Jerome10 states. However, if you strive for this situation to be reversed, the only way to achieve that is through attracting more high paying jobs. Therefore, translating into higher federal income taxes paid and fewer people requiring government assistance. Michigan has long enjoyed the benefits of abundant high wage automobile industry employment. It is time for someone else to share in the wealth.