Fiat Chrysler Good News

[Batsto]

Fiat Chrysler Automobiles (FCHA.MI) (FCAU.N) on Sunday said it will invest $1 billion to modernize two plants in the U.S. Midwest and create 2,000 jobs, upping the ante as automakers respond to threats from President-elect Donald Trump to slap new taxes on imported vehicles.

 

FCA's announcement that it would retool factories in Ohio and Michigan to build new Jeep sport utility vehicles, including a pickup truck, and potentially move production of a Ram heavy-duty pickup truck to Michigan from Mexico, also highlighted the auto industry's keen interest in getting relief from tough fuel economy rules enacted by the outgoing Obama administration.

 

General Motors Co (GM.N) Chief Executive Mary Barra on Sunday said tax reform and "streamlining regulations ... are just two areas that would be extremely beneficial" for Trump to address. Trump has criticized GM for building cars in Mexico while laying off workers in the United States.

[TroutandBucks]

This is great news 

[not on the rug]

Great news for american workers

Edited January 9, 2017 by not on the rug

[51smd]

Great

[newjerseyhunter]

Great news for american workers

 

 

I wonder if it is "great news" after all is said and done. I can't help but think these companies are getting some sweetheart deals in terms of tax breaks or other incentives to stay here rather than go abroad. Granted our corporate tax rate is high and many companies look to shelter their money outside of the US for this very reason. However, if we give these companies massive incentives to stay so they can create a small number of jobs is it really benefiting the overall economy and American workers? I'd be very interested in knowing the details of how these deals are being made.

[not on the rug]

I wonder if it is "great news" after all is said and done. I can't help but think these companies are getting some sweetheart deals in terms of tax breaks or other incentives to stay here rather than go abroad. Granted our corporate tax rate is high and many companies look to shelter their money outside of the US for this very reason. However, if we give these companies massive incentives to stay so they can create a small number of jobs is it really benefiting the overall economy and American workers? I'd be very interested in knowing the details of how these deals are being made.

I'm fine with giving corporations tax breaks as an incentive for not going overseas.  It keeps money here and employs Americans, and this country needs way more of that

[Wallew]

I wonder if it is "great news" after all is said and done. I can't help but think these companies are getting some sweetheart deals in terms of tax breaks or other incentives to stay here rather than go abroad. Granted our corporate tax rate is high and many companies look to shelter their money outside of the US for this very reason. However, if we give these companies massive incentives to stay so they can create a small number of jobs is it really benefiting the overall economy and American workers? I'd be very interested in knowing the details of how these deals are being made.

Who cares what kind of incentives they are getting. America is hemerageing jobs. Anything that can be done to keep or create jobs in this country should be done. That's a big reason why Trump was elected.

[TDietz]

I wonder if it is "great news" after all is said and done. I can't help but think these companies are getting some sweetheart deals in terms of tax breaks or other incentives to stay here rather than go abroad. Granted our corporate tax rate is high and many companies look to shelter their money outside of the US for this very reason. However, if we give these companies massive incentives to stay so they can create a small number of jobs is it really benefiting the overall economy and American workers? I'd be very interested in knowing the details of how these deals are being made.

At least it's news, something new, not the same old dumbass deals made by dumbass politicians basically throwing America under the bus all the time, and I agree with you, who knows for sure.

[TDietz]

now that is scary

[mikejd]

I'm fine with giving corporations tax breaks as an incentive for not going overseas.  It keeps money here and employs Americans, and this country needs way more of that

Im with you. I don't care if they are tax free for 10 years. Keep the work here and the money will come. Best news in Atleast 8 years. Maybe more.

[newjerseyhunter]

Who cares what kind of incentives they are getting. America is hemerageing jobs. Anything that can be done to keep or create jobs in this country should be done. That's a big reason why Trump was elected.

 

 

Im with you. I don't care if they are tax free for 10 years. Keep the work here and the money will come. Best news in Atleast 8 years. Maybe more.

 

I guess it all depends on the math. Should we want to keep a couple thousand low to midlevel jobs in America at any cost... even hundreds of millions in tax revenue? I don't know if that makes sense. Kind of like when a municipality gives an NFL owner a huge tax break and other incentives to build a stadium because it will bring some jobs and tax revenue in years to come. I believe the tax payers in those cities always end up losing but I may be mistaken. Generally speaking corporate welfare helps the corporation, not the workers, not the communities, states, etc. 

[Bucksnbows]

Were there offers of tax incentives in this particular deal or not?  Everyone is assuming so, but I honestly don't know.  If Fiat/Dodge is just saying they'll invest this in the US because they see more favorable business conditions coming under Trump, then that is great.  If they received incentives, we need to look at how much and go from there.  Either way, 2,000 middle class jobs and the associated income they spend is a big contributor to their local economies above and beyond whatever taxes those companies that employ them (in this case Fiat) would pay even if at full value based on today's very high US business taxes.  

[buckhound]

 I am not as smart as some but what are the tax payers getting from a company that is manufacturing in a foreign country paying foreign workers and hiding profits in foreign banks...how do these same tax payers benefit from giving tax breaks to companies for manufacturing and hiring american workers and keeping profits in american banks...

Edited January 9, 2017 by buckhound

[Haskell_Hunter]

This is a very complicated economics issue.  On one hand, people working is always a good thing, but the company needs to remain profitable so all workers have a job.   Overseas workers keep labor costs down, and subsequently the costs of the products are lower.  US labor is a very high cost, probably the highest in the world.  So either the cost of the products are going to go up, or the cost of the threatened tariff would cause the cost of the products to go even higher.  The adverse affect of putting import tariffs in place is the reaction of other countries to do the same thing, thereby making US exports more expensive.  It can trigger a trade war that isolates the US from trading with other countries.

 

So I think it's great that people are going to have jobs and work, but I am concerned about the external issues that can be created by trade protectionism.

[newjerseyhunter]

This is a very complicated economics issue. 

 

I think this says it all. 

 

I often think to myself that the "Global Economy" is so complex and has so many moving parts that there isn't really anyone who fully understands every aspect of it and what the implications of "action x" vs "action y" might be. Who knows... I'm headed back to the beer thread! ha