Listen Now: A Bidding War
Two of the world’s biggest automakers are joining forces and half of the country is competing to get in on the action.
Recently Toyota and Mazda announced the two companies were joining forces to build a $1.6 billion assembly plant here in the United States. The plant will employ 4,000 workers and would be located near Toyota’s existing supply chain. And since that supply chain is currently located from West Virginia through Kentucky, Indiana, Alabama, Mississippi and Texas, Midwestern and southern states are competing for the new business.
Experts say states covet plants such as this one because they typically pay above average wages and spin off jobs to nearby suppliers and service companies.
For Toyota and Mazda advantages of a southern state include proximity to major ports and business friendly labor requirements. For Midwestern states the perks are tax breaks or publicly funded training programs. The plan also comes as president trump is threatening tariffs to curb auto imports and invest in domestic production. It’s the south versus the Midwest but either way America is coming out on top.
CBS News Radio national business journalist Brian Banmiller has spent more than 40 years in the news industry, covering business, politics and the economy on television, radio and in print. Currently, his “Banmiller on Business” reports are delivered to an audience of millions nationwide.