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

WASHINGTON, Dec. 12, 2008; 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.