Why not a Honda plant in Michigan?, asked the Detroit Free Press.
...if Michigan was never in the running, it is fair to ask why. Image? Message? Union presence? Business climate? Political climate? Climate, period? All those things add up to a huge problem for Michigan. This state is supposed to be the center of the automotive universe. If a global auto manufacturer doesn't have Michigan on its "consider" list, where does the state figure in the plans of non-automotive businesses?I'd say political climate is the primary reason our state lost out. In fact, Jim Hossack, vice president of AutoPacific, an automotive research and consulting firm, had this to say:
"It follows the pattern of imports to have facilities in many different states because it doesn't hurt to get as many senators, governors, congressmen and mayors on your side as you can, and this is how you do it..."Of course they wanted Washington on their side, but President Bush didn't help our chances very much in the influence department, and I'm sure Honda took note of this recent announcement in the Detroit News:
President Bush's planned meeting with the Big Three has been postponed a third time -- this time until July -- which may add to the perception Detroit's automakers are struggling to get their message heard by the White House. [...]Oh, it speaks volumes. I think Bush's snubs were intentionally designed to send a message to Honda. One of the concerns the automakers wanted to discuss was currency manipulation by the Chinese and Japanese central banks. By refusing to address this issue, Bush essentially said to Honda put your plant in red state Indiana - and not in blue state Michigan - and I'll work with you.
An initial meeting with Bush was set on May 18. The meeting was rescheduled for June 2 then postponed. The White House told automakers it was committed to a gathering by the end of June.
That deadline will come and go, and no firm date has been set in July.
"This is the most important industry in Michigan and, for that matter, the country, and the CEOs can't get a meeting with the president of the United States. That should speak volumes to voters in Michigan as to how the Republicans feel," said Gov. Jennifer Granholm's campaign spokesman Chris DeWitt.
4 comments:
this is what's so wonderful about blogs, you get information you would never get in the news. I had no idea the ins and outs of this deal. Thanks for filling me in. :)
Yes, by postponing a meeting with Big 3 automakers, Bush clearly was sending a clandestine signal to Honda that he wanted them to locate in Indiana instead of Michigan and in return .. um..
This is the dumbest thing I've ever heard.
That's what's so awful about blogs...anybody can post any bit of paranoid foolishness, but it looks as legit as any other piece of information.
Maybe Honda picked Indiana for a simple reason: it's a better, cheaper state to do business, and they hustled to win the plant, while the UAW makes MI too expensive Jenny didn't do what it took to land the big fish.
Anonymous, that's why I love this country. We can freely voice our opinions.
I've come across other opinions on the Honda plant recently. James Loewen believes Honda chose Greensburg in part because of it's predominantly white population:
Greensburg is an "outstanding community of white people." That's because Greensburg is a sundown town -- an all-white town that for decades was that way on purpose. Sundown towns derive their name from the fact that many of them, including dozens in Indiana, posted signs telling blacks not to "let the sun go down on you" while inside their corporate limits. [...]
In the 2000 census, Greensburg still had only two black or interracial households among 10,260 residents.
He goes on to point out that the 2,000 jobs Honda will bring to Greensburg will be for whites only (and perhaps Mexican Americans). If this had anything to do with Honda's decision, then Michigan's diverse population, especially in the areas where automotive plants exist, would be a negative in the eyes of Honda management.
Regarding your comment about Granholm not doing anything to land Honda, this recently appeared in the Detroit News:
Michigan did not fail to land this plant any more than when Honda made similar decisions during the last 25 years. Since its first installations on American soil, Honda has scrupulously avoided any notable presence in Michigan.
Today Honda stands apart from the more than 200 auto companies and suppliers that have made significant investments in our state. Indeed, Honda is the only automaker without a facility of any consequence here.
Since then, Michigan is benefiting from significant investment announcements by Toyota and Hyundai and greater ones still from GM, Ford and DaimlerChrysler. During the last four years, the three Michigan-based automakers have committed to invest $9 billion into production facilities in our state. Put in context, this amount is about 15 times Honda's proposed investment in the new plant in Indiana.
Fairness demands that Gov. Jennifer Granholm's record be viewed against her predecessors. Govs. William Milliken, James Blanchard and John Engler all had more time and kinder budgetary and economic circumstances in which to work. None was more successful than she in bringing Honda to Michigan.
In truth, Honda's choice speaks to a wish for its own regional network, close enough to Michigan to buy from our suppliers and recruit talent, yet far enough away to be the biggest fish in a smaller pond of its own making.
Granholm has done remarkably well in generating new investment and jobs in a fiercely disadvantaged budgetary environment. Thanks to her efforts, Michigan has more new automotive investment coming online than any other state, and our place as the center of the automotive universe is secure.
I still maintain Bush continues to snub Michigan and our auto companies. He could have said something to lend his support, instead he made derogatory comments about the relevance of the cars being made. I still maintain the fact that Indiana has a Republican governor hurt our chances. It's no secret that corporations have been in bed with Republicans for years, and the majority of political contributions continue to benefit the GOP.
As foreign automakers have grown their business in the United States, they've also grown in influence in Washington, where more lawmakers represent states with their factories. Toyota Motor Corp. spent $5.3 million last year on lobbying, up from $4.3 million in 2004, while Honda Motor Co. spent $2.2 million.
Thanks for the comment though. I tend to think you're a teenage troll, and I usually don't bother answering anonymous commenters, but I wanted to add this additional information to my blog.
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