The New Domestic Automakers in the United States and Canada

The New Domestic Automakers in the United States and Canada : History, Impacts, and Prospects

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Over the past forty years, state/provincial and local governments in the United States and Canada have provided foreign automakers with approximately $4.80 billion in incentives in order to lure light vehicles assembly plants to their areas. This has included tax abatements, infrastructure construction, land giveaways, job training programs, and other subsidies. As of early 2015, ten foreign vehicle makers operated 20 light vehicles in developed North America. Despite the fact that all ten of these automakers have pursued a similar pattern-first exporting vehicles into the United States and Canada before launching vehicle plants in developed North America-each has followed its own specific historical development path and has created its own unique growth trajectory. This book provides a unique historical and qualitative review of these ten vehicle makers, from their early beginnings to their export entry into the United States and/or Canada through early 2015. In addition, it chronicles the histories of more than a dozen former automakers and potential future foreign light motor vehicle assembly plants in the United States and Canada.
This includes the first foreign automaker to build its cars in the United States, De Dion-Bouton of France in July 1900, the early 20th Century endeavors of Fiat, Mercedes, and Rolls Royce, and the present day hopes of Chinese and Indian automakers. In the process, the text also provides an assessment of the top competing states and sites for any future plants, the possible incentives packages governments may offer to attract such facilities, and an estimated incentive value for each automaker. Overall, the goal of this book is to expand the knowledge of policymakers at all tiers of government in the United States and Canada and to help them take a more holistic look at the pros and cons of attracting Automobile Manufacturing FDI. It is hoped that this will enable them to make more informed decisions when pursuing a new foreign motor vehicle assembly plant. Its findings should also prove informative to urban and regional planning, political science, sociology, economics, labor, and international development scholars and students in North America and worldwide.
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Product details

  • Hardback | 520 pages
  • 190 x 259 x 32mm | 1,089g
  • Lanham, MD, United States
  • English
  • 52 Tables, unspecified; 3 Maps
  • 0739188259
  • 9780739188255

Table of contents

1. Introduction and Overview to the Book 2. First European and Foreign Automaker Plants in U.S: 1900s-1940s 3. The Golden Age for European Cars in North America Part I: Volvo and Renault's Early Plants in Canada and the U.S 4. The Golden Age for European Cars in North America Part II: VW and Renault Again 5. Birth of the Japanese New Domestics: Isuzu and Toyota's 1960s Joint First Steps in Canada 6. Imports, Trade Friction, and the Japanese Invasion Part I: The Rise of Honda and Nissan in the U.S. and Canada 7. Japanese Invasion Part II: And Here Comes Toyota 8. The Second Wave of Japanese Auto Transplants Part I: Mazda and Mitsubishi Are Next to North America, 1980-1992 9. The Second Wave of Japanese Auto Transplants Part II: Joint Ventures Bring Suzuki, Subaru, and Again Isuzu to North America, 1980-1992 10. Here Comes the Germans I: BMW Lands in the Palmetto State, 1992-2002 11. Here Comes the Germans II: Mercedes-Benz in the Heart of Dixie, 1993-2002 12. Then Came the Koreans: Hyundai in Quebec and Hyundai-Kia in the Southern Auto Corridor, 1985-2010 13. The New Big Three: The U.S. and Canadian Prospects for Japan's Largest Automakers 14. The Potential Near-Term Expansions of Japan's Smaller Producers in the U.S. and Canada 15. Projections for European Automaker Expansions in the U.S. and Canada 16. Projections for Korean and Chinese Automaker Expansions in the U.S. and Canada 17. European Acquisitions and Projections for Indian Automaker Plants in the U.S. and Canada 18. Worth the Investment? A Brief Study of Honda, Nissan, Toyota, BMW Plants, and the Rest 19. Top Sites/Areas Competing for the Next Major Foreign Auto Assembly Plants 20. Summary and Concluding Thoughts Regarding the New Domestics and Foreign Automakers in the U.S. and Canada
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Review quote

This book presents an excellent study of the worthiness of government financial incentive packages for foreign automakers to locate new plants in North America in particular jurisdictions... Detailed 2015 economic data is provided for each currently active foreign automaker plant in North America, including for some their total payroll, average wages, and impact on total employment, and for all the plant history, employment, production capacity, size of incentive package, if any, competitive situation, and expansion plans. Chinese and Indian automaker expansion plans are included. Lengthy evaluations of dozens of the top areas competing for the next major foreign investment, with rankings given, highlight the likely continued dominance of southern US states in 'winning' new auto plants and concerns for rising 'out-of-control' incentive packages. The book should be of great interest to public officials and executives in all industries. The bibliography and index are excellent... Summing Up: Highly recommended. Graduate students and faculty. CHOICE Encyclopedic in the depth of its research and the detail of its coverage, A.J. Jacobs' book provides an incredibly important contribution to our understanding of the history and impact of the North American auto sector and the role of foreign manufacturers in its evolution. This is the first book that really provides a comprehensive, transnational, and fresh analysis of one of the most profound shifts in industrial development in North American and global history-the emergence of the New Domestic automakers on this continent. -- Dimitry Anastakis, Trent University
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About A.J. Jacobs

A. J. Jacobs is associate professor in the Department of Sociology at East Carolina University.
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