It’s happening! Apparently Audi will build a new $4 billion auto plant in USA, and create thousands of jobs . . .
[b][b]Photo above - guess which of these minivans costs, $70,000, and which was $2,000?[/b][/b]
Who says Trump’s back to the future fantasy to resurrect the 1950’s factory economy can’t happen? Step forward and take your medicine. Me too. I’ve been a consistent skeptic.
This just announced: Audi will build a $4 billion factory, which will probably parachute in close to VW's existing factories in Tennessee or South Carolina. (See link below). Sorry, UAW . . . these are unlikely to spawn thousands of $140,000 a year union jobs like Detroit is burdened with. The south will rise again – as a non-union, post-rust-belt manufacturing mecca.
Some analysts are predicting the new Audi factory will be co-located with the existing VW plants to leverage existing supply chains, back-office functions, and previously VW built road and rail infrastructure. So far so good. But without turning to my dark side, can I bring up a few things that we probably should watch for?
1 – the factory isn’t even designed yet. Then it needs environmental vetting by state and federal agencies. And zoning and permits. Only then construction can begin. Maybe it’s finished in 3 or 4 years? Maybe . . .
2 – Some factory promises are just smoke and mirrors to begin with. Like Foxconn pretending it would build a huge Smartphone factory in Wisconsin. 8 years ago. America’s state affiliated, left leaning media (like NPR) are still cheering that this hasn’t happened. See second link below.
3 – VW-Audi has a sketchy record when it comes to compliance with government regulations. They got nabbed faking their diesel emissions tests during the Obama administration. The fallout included complete decapitation of the VW senior management team, including CEO Martin Winterkorn. VW-Audi halted production of all diesel passenger cars, and pivoted hard to battery EVs. The new vehicles are overpriced, have crappy range, and are slow sellers in the USA. They couldn’t even get the iconic electrified VW bus (ID Buzz) right. It costs an astonishing $70,000. The iconic original 13 window bus, with sunroof, cost something like $2,000.
Before we pass out the tariff dodger of the month award to Audi, let’s remember that a BUNCH of international brands already have factories in the USA.
Toyota – 5 plants
Honda – 4 plants
Hyundai/Kia – 3 plants
And Mercedes, Mazda, Nissan, Volvo, BMW, Subaru . . .
Welcome to America, Audi. But I doubt if I can afford your products. Even the tiny, base models of the A4 are scary-expensive. But not as much as the VW ID Buzz . . .
I’m just sayin’ . . .
Audi building plant in USA to please Trump: Report - Car News | The Financial Express
What Wisconsin's Foxconn plant can tell us about the future of manufacturing in the U.S. : NPR