Would Ford Leave Michigan if Not for a Handout from the State?

Michigan Capitol Confidential ^ | 7/21/2015 | Jarrett Skorup

[MichCapCon]

In a recent story in MLive, the Michigan Economic Development Corporation is given credit for "retaining" 40,200 jobs in Michigan when it awarded two MEGA tax credits to the Ford Motor Company. The story reports: "… in the end the two credits were supposed to retain up to 40,200 jobs.”

ForTheRecord says: At the time of the agreement in 2010, the MEDC reported that Ford had 36,720 employees in Michigan. Ford Motor Co. estimates there are 40,000 employees in Michigan currently. That means the MEDC is taking credit for retaining every job in the Ford Motor Company.

Would the company that Henry Ford founded in Detroit in 1903, whose family now also own the Detroit Lions and whose name is on the football stadium, pick up stakes and move out of Michigan if it hadn't received a couple of tax credits worth $1 billion spread out over 20 years? Ford's worldwide revenue in 2010 at the time of the deal was $128.92 billion with net income after taxes of $6.56 billion.

If that scenario doesn't seem likely, did the MEDC really "retain" every one of Ford’s Michigan jobs? Would Ford be in South Carolina right now without the state handouts?

[IllumiNaughtyByNature]

It would be the ancillary jobs around Ford also. Just like Toyota USA moving from CA to TX, the additional smaller companies dependent on Toyota are relocating or moving works to TX as well, since they need to be close to their vendor.

[henkster]

Or Mexico.

[tgusa]

When Ford closed their pickup assembly plant here in Norfolk, it was more than Ford employees who felt the bite. There were many small suppliers who closed their doors also. Not pointing an accusatory finger at Ford - it was a business decision. At least they stayed profitable without a gummint handout.

[Regulator]

They SHOULD move to Mexico.

Ford opened a plant in Hermosillo, a town in central Sonora that was nothing but a way station for smugglers and tourists going to Kino Bay.

There was no infrastructure, no market, no skilled workforce to speak of. It was built ENTIRELY to take advantage of cheap Mexican labor, and transport the cars to the U.S. through Nogales very quickly.

Note that although people in Arizona have been buying Ford products for going on 100 years the company has never had any significant manufacturing or procurement in that State in that same time period.

P*** on them. They want to be a Mexican company, so be it. Bye.

[tcrlaf]

Not likely, as long as the Ford Family retains operational Control.

[SunkenCiv]

[snip] ...40,200 jobs... tax credits worth $1 billion spread out over 20 years... [/snip]

$1243.78 per year per job.

[truth_seeker]

The greater region is a worldwide auto industry hub, similar to certain other hubs around the world.

It is a hub for the US/Canada market. Lost Angeles is a hub of sorts too, for the design facilities—even though there are no longer assembly plants.

Isn’t suburban Detroit nice, in spite of the decayed old city center?

Aren’t there still many auto industry suppliers in Detroit/Michigan?

[cripplecreek]

Yeah, they aren’t going anywhere. They’re negotiating a union contract which always brings the rumors.

List of global Ford plants.

https://en.wikipedia.org/wiki/List_of_Ford_factories

[2001convSVT]

I was thinking that South Carolina and Alabama would have the best pro business tax policies. But I have to admit Texas sure knows how to make businesses happy.

[cripplecreek]

Downtown and midtown Detroit are pretty nice as are many of the suburbs. Despite the FR consensus Dearborn is home to many mid level auto company executives. Hell, Ford HQ is there as well as the headquarters of several other major parts suppliers.

The worst parts of Detroit are around the edges for the most part.

[bmwcyle]

Ford has been slowly removing themselves for years.

[mlo]

"Would Ford Leave Michigan if Not for a Handout from the State?"

Wouldn't you? :-)

[truth_seeker]

“Downtown and midtown Detroit are pretty nice as are many of the suburbs. Despite the FR consensus Dearborn is home to many mid level auto company executives. Hell, Ford HQ is there as well as the headquarters of several other major parts suppliers.

The worst parts of Detroit are around the edges for the most part.”

I have never been to Detroit. But I live in what is considered to be the 2nd largest metro area in our country, namely greater Los Angeles.

And to say “leave LA” because Watts and South Central exist, is ridiculous. So I assume it is equally ridiculous to say the same about greater Detroit.

As I mentioned, Detroit remains a major international hub of the vehicle industry. I assume companies are spread around many nice Detroit suburbs, related to the industry, right?

[central_va]

Conservatives get a real bad name with this off shoring to China and Mexico. I am not sure that is even a conservative position. There are 27 R-t-W states in the USA dying for Fords business. Ford should not move to Mexico and Trump is right if they do something stupid like that tariffs are in order big time.

[MinorityRepublican]

Not happy with “American” automobile corporations? Buy Tesla.

[MinorityRepublican]

Although Tesla manufactures their cars in Fremont, California, which is not a right to work state.

[cripplecreek]

Detroit is all of Michigan as far as some FReepers are concerned. It inspired me to create this.



Detroit is the second busiest freight crossing on the continent after Laredo. That's why Canada is willing to pick up the total cost of building a new bridge over the Detroit river. (Gordie Howe international trade crossing)

Detroit is also experiencing a tech boom largely driven by Quicken Loans founder Dan Gilbert who is loaning low interest loans and renting downtown office space to tech startups. He and others like Roger Penske are attracting a LOT of private money to Detroit. Its becoming the trendy place to be among the hipsters. They aren't my kind of people but they do have money and its nice to see people who are willing to work to build something.

Absinthe & Chili Dogs in the Motor City: Chef's Night Out with Guns & Butter

[truth_seeker]

Thanks. As a native of SoCal I am often amused at the difference between what outsiders say about this place, and what it is really like here.

And as you say, some of them “aren’t my kind of people but they do have money and its nice to see people who are willing to work to build something.”

I live where Fisker was tried, failed, and is being raised again. Where parts of the man-on-the-moon program were built. Home to major international corporations, and tiny startups.

Ranting against the chamber of commerce, when small business are joining and providing jobs, is not a winning Republican/conservative platform.

[Regulator]

Was surrounded by three Model S’s this morning! It’s a pretty car...

So would love to, but I’m waiting for the Model X...soon, Elon says, Soon...