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The Latest in the VW Assembly Plant Sweepstakes
by John Sprovieri
July 2, 2008

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Michigan, Alabama and Tennessee are vying to host Volkswagen’s new U.S. assembly plant and its concomitant 2,000 jobs. Here’s the latest scoop:

Michigan’s chances of getting the plant appear to be receding, according to a report in the July 2 edition of the Detroit News. Although VW executives are impressed by Michigan’s pool of highly skilled workers, they are reportedly concerned about the state’s economic difficulties. They also worry that the company might be overshadowed by Ford, GM and Chrysler. Read more about it here.

Meanwhile, Alabama is preparing to throw more than $200 million at VW to snare the facility, according to a June 30 report from the Associated Press. The money would come from a state trust funded by royalties from off-shore natural gas wells. However, Alabama voters would have to approve a referendum to grant the incentives. Read more about it here.

For its part, Tennessee wants VW to take over an old military site. You can read more about that here.

Who will win out? We’ll find out shortly. VW’s supervisory board will hash it all out at a meeting July 15. The carmaker hopes to sell 1 million vehicles annually in the United States by 2018, or more than triple what it sells now.

VW has built cars here before. From 1978 to 1988, the company assembled some vehicles at a plant in Westmoreland, PA.


John Sprovieri
sprovierij@bnpmedia.com
Editor

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  Comments (1)Post a Comment
Title: VW plant for Michigan?


"Volkswagen says it will provide details on new U.S. production facility in July. Sites in the states of Alabama, Tennessee and Michigan have been named in the running for the new plant." published in the International Herald Tribune on May 13, http://www.iht.com/articles/ap/2008/05/13/business/EU-FIN-COM-Germany-US-Volkswagen.php states VW plans to locate a new plant in Michigan, Tennessee, or Alabama. Plant location decisions will undoubtedly involve considerations of infrastructure, unions, and government incentives. I suggest considering one more factor: Michigan is one of the first jurisdictions in the world to have abolished the death penalty. In fact, March 1st is International Death Penalty Abolition Day, commemorating the date in 1847 when Michigan outlawed executions http://www.cuadp.org/history.html. Tennessee has 96 inmates awaiting execution and Alabama has 201. http://www.deathpenaltyinfo.org/article.php?scid=9&did=188# On April 16, 2008 the US Supreme Court Voted 7-2 to Allow Lethal Injection. Alabama http://www.ipsnews.net/news.asp?idnews=42344 is expected to resume executions shortly. Tennessee http://timesfreepress.com/news/2008/may/07/chattanooga-local-case-tied-death-penalty-debate/?local expects to resume executions after a 90-day state moratorium. Shouldn't a European company favor a location where European standards of justice and human rights are observed?

The Washington Post reports "In the debate between Europe and the United States over the death penalty, no country is more vocal than Germany. German media regularly decry executions in Texas."
http://www.washingtonpost.com/wp-dyn/content/article/2005/06/03/AR2005060301450.html

From an article appearing on the website of the German Embassy, Ambassador Speaks Out Against Death Penalty, "Deutschland newspapers regularly editorialize against Old West justice, while TV crews film documentaries at the Florence prison's death chamber." "The fundamental dignity of man does not allow the death penalty . . ." "The Bonn parliament passed resolutions condemning American barbarism." (Ambassador) "Ischinger said European countries are unanimously appalled by state-sanctioned killings . . ."
http://www.germany.info/relaunch/politics/new/pol_bo_arizona_republic.html

When it comes to attracting European companies, Michigan should not overlook the power of its progressive history regarding the death penalty, especially compared with its economic competitor states.



 

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