|Foreign-Based Companies Investing in the U.S. Auto Industry||247.46KB|
Foreign Direct Investment continues to play an increasingly important role in the U.S.automotive industry. There are now nine foreign-based motor vehicle companies producing vehicles in fifteen auto plants in the United States. The list includes one Korean firm, six Japanese companies and two German companies. To varying degrees these companies have encouraged their traditional supplier firms to co-locate new facilities in the United States to supply their new operations. According to the Bureau of Economic Analysis, these manufacturers have investments valued at over $66 billion in the United States ($44.7 billion from motor vehicle producers). Many of these firms, such as Toyota have announced new investments over the next few years. In addition, there are new players on the horizon, including Hyundai’s subsidiary Kia, with plans to open U.S. plants.
The trend has been for the foreign-based companies to locate their operations in the southern United States, away from the traditional center of U.S. auto manufacturing in Michigan, and into areas without strong pro-union sentiment. The most recent new plants or plant announcements, from Hyundai, Kia and Toyota are (or will be) located in Alabama, Georgia, Texas and Mississippi. These foreign-based companies have proven to be good corporate citizens adding high paying, quality jobs to local communities.
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