The U.S. is paying a hefty premium to bring in new jobs. Are you happy now, Lou Dobbs?
FT: The latest cheap manufacturing site for European companies is not in Asia or eastern Europe but the United States, say top executives from some of the continent’s biggest companies.
The reason is less the level of the dollar, which remains relatively low in spite of the euro’s recent plunge, but rather the huge level of incentives some US states are offering companies to set up factories in their region.
Tennessee, for instance, has just disclosed that it agreed to give German carmaker Volkswagen $577m in incentives for its $1bn plant in Chattanooga.
A senior executive at Fiat, the Italian industrial conglomerate, said: “With the amount of money US states are willing to throw at you, you would be stupid to turn them down at the moment. It is one of the low-cost locations to be in at the moment.”
Business Insider Emails & Alerts
Site highlights each day to your inbox.