US: States make investments to win automotive jobs image

The state of Georgia reportedly came up with an investment package of $23 million, meaning nearly $25, 000 for each of the 900 jobs that are relocated to the center of the New South.

The purpose of all this was to attract Mercedes Benz U.S.A. to a new location in Atlanta.

With U.S. being known as a country that faces difficulties in coping with middle class stagnation, the purpose of the investment package was to attract high-profile and high-paying automotive jobs. The payouts came in the form of tax incentives, free or subsidized land purchases and free utilities. The good news is that the $40 million covered 4,000 jobs!

This deal was a bargain compared to Nevada which managed to get a $1.25 billion (with a “b”) package that includes free electricity and the likelihood that Tesla will operate virtually tax free for more than a decade. Knowing the problems that Nevada has been facing recently, with unemployment peaking at 14.5%, we can understand its decisiveness in scoring Tesla. Like usually, there were some voices opposing the Tesla package, demanding to take away incentives that had been used to draw the insurance companies to the state.

It is well known that the South has been traditionally resistant to the unions that reign older automotive operations up North, but what it is important for the South is that it managed to attract a broad range of automotive operations with its incentive packages from Toyota’s headquarters to the expanded Mercedes-Benz plant in Tuscaloosa, Alabama.

By Gabriela Florea