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Nissan Cuts 20,000 Jobs, Will Seek Bailout

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After bad news from Ford, Toyota, and Honda, as well as the bailed-out GM and Chrysler, Nissan announced its losses for the year and that it would be cutting 20,000 jobs as a result.

Nissan is Japan’s third-largest automaker, after Toyota and Honda. The net loss of jobs (20,000 out of 235,000) is almost 10% of Nissan’s workforce. Additionally, Nissan announced its intention to move production of its cars from Japan to the United States and seek “government assistance” from both Japan and the US.

Megan McArdle writes that Nissan’s move is highly unorthodox for a company springing out of Japan’s “highly nationalistic” culture.

February 9th, 2009

Foreign Automakers Take Numerous Government Subsidies

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“Good Jobs First” lists the numerous subsidies that foreign auto manufacturers receive from state governments to locate plants in the US.

“As elected officials debate aid for the Big 3, taxpayers have the right to know the full extent of government involvement in America’s auto industry,” said Greg LeRoy, GJF’s executive director. “And while proposed federal aid to the Big 3 would take the form of a loan, the vast majority of subsidies to foreign auto plants were taxpayer gifts such as property and sales tax exemptions, income tax credits, infrastructure aid, land discounts, and training grants,” he said.

Honda, Marysville, OH, 1980, $27 million*
Nissan, Smyrna, TN, 1980, $233 million**
Toyota, Georgetown, KY, 1985, $147 million
Honda, Anna, OH, 1985, $27 million*
Subaru, Lafayette, IN, 1986, $94 million
Honda, East Liberty, OH, 1987, $27 million*
BMW, Spartanburg, SC, 1992, $150 million
Mercedes-Benz, Vance, AL, 1993, $258 million
Toyota, Princeton, IN, 1995, $30 million
Nissan, Decherd, TN, 1995, $200 million**
Toyota, Buffalo, WV, 1996, more than $15 million
Honda, Lincoln, AL, 1999, $248 million
Nissan, Canton, MS, 2000, $295 million
Toyota, Huntsville, AL, 2001, $30 million
Hyundai, Montgomery, AL, 2002, $252 million
Toyota, San Antonio, TX, 2003, $133 million
Kia, West Point, GA, 2006, $400 million
Honda, Greensburg, IN, 2006, $141 million
Toyota, Blue Springs, MS, 2007, $300 million
Volkswagen, Chattanooga, TN, 2008, $577 million

Total: more than $3.58 billion

* total of direct subsidies to all Honda facilities in Ohio
** includes about $200 million for expansions of Smyrna and Decherd plants

Good Jobs First reports that the list is “conservative” and many of the subsidies would be worth more when accounting for inflation.

December 15th, 2008