Alabama getting a VW plant!?

[Bama]

WOOT! Alabama may is said to be on the short list for a VW plant! Its between us, Tennessee, and Detroit. I wonder what they will be making?

[mrbeetlebrain]

I don't understand why VW would have a North American plant when they've got a Mexican one - wouldn't the costs be far higher in the US????

[wawalker]

Originally Posted by mrbeetlebrain

I don't understand why VW would have a North American plant when they've got a Mexican one - wouldn't the costs be far higher in the US????

Have you seen the value of the US Dollar lately?

[Bama]

http://www.myfoxal.com/myfox/pages/H...d=1.1.1&sflg=1

Its supposedly gonna be making a Passat replacement.

[D2Beetle]

This Mornin's paper... http://www.tennessean.com/apps/pbcs....SS01/804240403

[mrbeetlebrain]

Originally Posted by wawalker

Have you seen the value of the US Dollar lately?

Yes (and have you seen the Australian Dollar!!), it's still higher than the Mexican Peso I presume.

[miffmole]

Originally Posted by wawalker

Have you seen the value of the US Dollar lately?

Devalued dollar or not, check this out (even though it's an '03 article):

http://www.siteselection.com/ssinsid...l/bd030127.htm

"Labor costs, too, are an obvious positive for VW in making the Bora in Puebla. Mexican autoworkers on average make around $3 an hour in wages and benefits. The comparable figure for U.S. autoworkers is $43 an hour."

[mrbeetlebrain]

Originally Posted by miffmole

Devalued dollar or not, check this out (even though it's an '03 article):

http://www.siteselection.com/ssinsid...l/bd030127.htm

"Labor costs, too, are an obvious positive for VW in making the Bora in Puebla. Mexican autoworkers on average make around $3 an hour in wages and benefits. The comparable figure for U.S. autoworkers is $43 an hour."

Exactly, even with higher freight costs to get those cars into the US to sell I still can't see why they'd do it, unless the state was going to give them very generous tax breaks to set up shop there...