Because… Madigan
Monday, Jul 27, 2015 - Posted by Rich Miller
* From the Illinois Policy Institute…
Mitsubishi Motors North America announced July 24 that it will close down the company’s production facilities in Normal, Illinois, jeopardizing the jobs of 918 workers who are represented by the United Automobile Workers union, or UAW.
“We do not have a statement at this time, however, as an organization, we continuously assess our supply chain to ensure we remain competitive and best positioned to serve our customers,” Mitsubishi North America spokesman Dan Irvin told the Journal Star.
Of all the Japanese-owned auto factories in the U.S., the Normal plant is the only one where hourly workers are represented by the UAW, according to the Pantagraph.
The fact of the matter is that manufacturers in Illinois cannot remain competitive given the state’s absurd regulatory and business climate. And it’s no mystery why businesses leave. […]
Notably, Illinois House Speaker Mike Madigan has failed to acknowledge these realities. In refusing to speak about policy errors affecting the state’s middle class, Madigan has offered no thoughts on the causes of Illinois’ manufacturing exodus nor solutions for how to fix the problem.
* From Car and Driver…
Mitsubishi, once a bastion of low-priced, sporty models, has struggled in the U.S. for a long time… While a recent sales uptick has helped Mitsubishi claim success, that’s only because the numbers have been so low. The company’s 49,544 units last year weren’t even a quarter of the company’s 2002 peak, when more than 345,000 Mitsus flew out the door… Cars like the awesome 3000GT are no more (with the Lancer Evolution soon to follow), and dealers have little competitive product until the refreshed 2016 Outlander plug-in, next Lancer, and Mirage sedan reach our shores.
Check out this infographic about how the company’s sales have fallen through the floor.
* Also…
“This difficult decision follows years of challenge to remain viable, and was compelled by the combination of insufficient U.S. sales and low production capacity utilization,” Hiroshi Harunari, executive vice president in charge of overseas operations for Mitsubishi Motors Corp., said in the statement. “We greatly value the work of all of our employees in Normal and want to stress that our motivation to exit from this facility is unrelated to labor costs or our relationship with the UAW.
“Our partnership over the years has been both respectful and mutually beneficial. Our primary focus right now is to work together to identify a strategic buyer for the plant in order to transit into next phase.”
* And…
[Normal Mayor Chris Koos] said company officials told him the reason for the decision was tied to a decline in Russian sales of the Outlander Sport, which has been built at the plant since 2012.
All that being said, finding a manufacturer to move into that building ain’t gonna be easy, considering our high costs of doing business here.
And it is true that Speaker Madigan has not proposed anything major this year to help our manufacturing base.
- lake county democrat - Monday, Jul 27, 15 @ 11:52 am:
Even I won’t bash Madigan on this one - Mitsubishi must have hired a bunch of retired Schlitz Beer executives a few years ago to run their company into the ground.
- Anonymous - Monday, Jul 27, 15 @ 11:53 am:
It’s a whole lot tougher to get manufacturers to move in than it is to keep them from moving out. With the latter they factor in what they’ll save by not moving vs what the regulations and labor costs are…with the former, the costs of moving are flipped to the same side of the equation as the increased regulations and labor
- Demoralized - Monday, Jul 27, 15 @ 11:54 am:
Raise your hand if you didn’t think this would be blamed on Madigan. Mitsubishi has been in trouble for a long time. This isn’t surprising. But don’t let those sorts of facts get in the way of the political narrative.
- All the answers - Monday, Jul 27, 15 @ 11:56 am:
Rauner came into office without a plan and was never questioned for one. Illinois Policy institute is a big recipient of Rauner, Griffin, and Uihlein funding. The spin/blame game is really getting tiresome but I supposed that’s what IPI is paid to do. Pretend to be 501c3 and do the political marketing.
- Albany Park Patriot - Monday, Jul 27, 15 @ 11:58 am:
“Not every job belongs in America,” is what Bruce Rauner is on the record as saying, supporting such awful closures.
- train111 - Monday, Jul 27, 15 @ 11:59 am:
Good old IPI
A noun, a verb, and Madigan
Must be a tough job writing those releases.
- Norseman - Monday, Jul 27, 15 @ 12:01 pm:
The IPI and 1%ers solution is to decrease salaries and benefits. So we now have a new definition of the American dream, i.e. the one percenters get richer and the others should be happy in their lower paid work.
- Anonymous - Monday, Jul 27, 15 @ 12:01 pm:
I don’t blame Madigan for Mitsubishi leaving, but I do blame him for helping to create and refusing to fix the business environment that is going to make it tough to find a similar replacement for Mitsubishi in Normal
- Wordslinger - Monday, Jul 27, 15 @ 12:01 pm:
I honestly didn’t know that Mitsubishi was still in business. I wouldn’t know a Mitsubishi if it ran me over.
That was a big win for Big Jim back in the day. He hustled like crazy back and forth to Japan and gave away a bundle to land it.
It should be noted that the only reason the Japanese were looking to build cars here is that Pres. Reagan got tough with domestic content standards.
He saved Harley, too, which was being driven out of business by the dumping of big CC Japanese bikes.
That was around the time the competition among the states to give away the most and crreate press releases was really taking off.
The biggest prize was Saturn, to Tennessee.
Anyone seen a Saturn, lately?
- Hedley Lamarr - Monday, Jul 27, 15 @ 12:03 pm:
Didn’t Rauner promise to retain jobs?
- 4 percent - Monday, Jul 27, 15 @ 12:04 pm:
While this decision was focused on Mitsubishi products and sales, the larger point is that Illinois is not business friendly. The R & D credit just expired at the end of June which is critical for manufacturers and the Democrat leaders would not allow it to be called for an extension. Wisconsin just extended and modernized their R & D credit. It’s night & day between Illinois and other states.
- 47th Ward - Monday, Jul 27, 15 @ 12:06 pm:
I wonder how many times John Tillman meets with the Governor. Is this one of the “mental processes” Team Rauner is afraid of revealing?
It’s Madigan’s fault that Russia isn’t buying these cars anymore? Wow. Who knew?
- Precinct Captain - Monday, Jul 27, 15 @ 12:08 pm:
How will stripping public sector workers of collective bargaining help our manufacturing base? How will term limits help our manufacturing base? How will keeping workers comp cost cuts in the hands of insurers help our manufacturing base?
- Formerly Known As... - Monday, Jul 27, 15 @ 12:08 pm:
This writes itself.
It has more to do with Mitsubishi and their shrinking market share than Normal imho, but the timing is a gift to Gov Rauner.
Drawing another employer will clearly be harder than necessary due to our business costs, which supports Rauner’s message about the necessity of reform. Not good for Normal.
- All the answers - Monday, Jul 27, 15 @ 12:08 pm:
Although Mr. Tillman may be an expert when it comes to selling Uline office supplies, perhaps this policy wonk thing isn’t really his thing after all.
- @MisterJayEm - Monday, Jul 27, 15 @ 12:09 pm:
Is there no limit to Mike Madigan’s control?!?
– MrJM
- Oswego Willy - Monday, Jul 27, 15 @ 12:09 pm:
This would be a great opportunity for the Governor to get in a jet, poach a company, bring then back to B-N, and announce his selling of Illinois has worked.
Of course, Rauner needs the GA to help make things “better” for business here, so it’s an easy “out”…
“My hands are tied, Illinois is awful for business…”
Ok. Stop.
What could be done is if the Governor, the legislators representing B-N, the Four Tops, they all make this “Starting Point A” and figure out a true business friendly set of legislative circumstances that will pass and can be signed AND be marketed as the property/business/Labor/Government cooperation Rauner craves, the Democratic Leadership will sign off on, with Rauner’s signature, and the locals, at the statehouse level, and local governing bodies get to entice a new corporate residence at the location.
This could be THE start.
It’s only Pollyanna if all involved don’t pull together with the goal to make it happen.
All need to buy in, and all need to be “all in”
Crisis creates opportunity. Here is a great way to show it. By all.
- Outsider - Monday, Jul 27, 15 @ 12:12 pm:
83,000+/- car sales in the US….now that is Madigan’s fault…he never bought one.
- JS Mill - Monday, Jul 27, 15 @ 12:13 pm:
Mitsu is closing even after all of the tax breaks and freebies that were thrown their way?
You can talk about the “economic environment” all you want. There are some factors that are not as favorable but taxes are not one of them. With all of the freebies and special incentives companies like Mitsubishi are not leaving because of taxes.
Maybe they just aren’t very good at the car business.
- GraduatedCollegeStudent - Monday, Jul 27, 15 @ 12:13 pm:
@4 percent.
Why should manufacturers get an R&D tax credit when they aren’t doing any serious R&D?
I mean Cat doesn’t even spend 4% of its revenue on that for all of their talk about how important it is to them.
- A guy - Monday, Jul 27, 15 @ 12:18 pm:
== Wordslinger - Monday, Jul 27, 15 @ 12:01 pm:
… I wouldn’t know a Mitsubishi if it ran me over.===
Now I’m tempted to buy one! (joshing)
- Wordslinger - Monday, Jul 27, 15 @ 12:21 pm:
4 Percent, I can save Mitsu the R&D expense: they make lousy cars that not even the average Russian will buy.
The Russian robber barons drive Mercedes.
- Secret Square - Monday, Jul 27, 15 @ 12:28 pm:
The plant in question was originally called Diamond Star and was a joint venture between Mitsubishi and Chrysler. It was, IIRC, supposed to usher in a new era of U.S.-Japanese economic cooperation, or something like that, but eventually Chrysler bailed out and now most people don’t even remember that Chrysler was involved in the first place.
- Arthur Andersen - Monday, Jul 27, 15 @ 12:34 pm:
Word, I see more Saturns than you might imagine. Those plastic body panels kept them from rusting into oblivion.
And Madigan is about as responsible for this closure as Tennessee Tuxedo was responsible for the failure of Saturn. Build good cars that meet a market need and your plants keep humming along.
- nixit71 - Monday, Jul 27, 15 @ 12:34 pm:
==The biggest prize was Saturn, to Tennessee. Anyone seen a Saturn, lately?==
The Spring Hill, TN factory was retooled years ago to build the Chevy Equinox and GM’s 4-cylinder engines. Also, production of the Cadillac SRX is moving there (from Mexico, no less). I would argue TN’s “business friendly” climate is a major reason why that plant is still in operation.
- relocated - Monday, Jul 27, 15 @ 12:36 pm:
Perhaps they can look back far enough and pin the blame on Madigan for declining typewriter sales. If mitsubishi wants to try to sell overpriced junk, nothing much state government can do to prop them up. Perhaps the IPI forgot who was speaker when Mitsubishi came here.
- Wordslinger - Monday, Jul 27, 15 @ 12:40 pm:
A golden opportunity for the governor to put his mad salesmen and business skills to work for the good of the state.
Big Jim landed the original plant, in partnership with the GA leadership at the time.
- Secret Square - Monday, Jul 27, 15 @ 12:42 pm:
“That was a big win for Big Jim back in the day.”
Especially coming off events like the ‘82-83 Caterpillar strike, the decline of International Harvester in Canton, and other blows to the Central Ill. manufacturing economy at the time. That was the era of “Will the last person to leave (name of town) please turn off the lights?” bumper stickers.
- Steve - Monday, Jul 27, 15 @ 12:43 pm:
Check out the map down below. It says a lot about where businesses want to operate or leave. Just a reminder.
http://www.nrtw.org/rtws.htm
- CrazyHorse - Monday, Jul 27, 15 @ 12:47 pm:
==It’s Madigan’s fault that Russia isn’t buying these cars anymore? Wow. Who knew?==
Around those parts he’s known as Mikhail Madigan comrade! LOL
- PublicServant - Monday, Jul 27, 15 @ 12:50 pm:
IPI, once again, spewing propaganda by stating the fact that Mitsubishi is leaving Illinois, and implying that the cause is Illinois “absurd regulatory and business climate”, when, in actuality, the reason is that their product(s) is no longer in demand.
Pravda, back in the day, only wishes they could spew lies as well as the Koch’s IPI.
- Now What? - Monday, Jul 27, 15 @ 12:51 pm:
Pretty challenging for the “free-market-competition benefits all of us” crowd like the IPI when a company that puts out an inferior, non-competitive product like Mitsubishi cars to place blame. Where does it begin? Oh, of course, the workforce, the unions, the politicians and Illinois’ unfriendly business climate. If the IPI had any knowledge of basic economics, the press-release should lay the blame directly on Mitsubishi for running their organization as if it’s still 1992, thus abusing the overtly generous tax incentives, freebies, and cheap labor.
Isn’t this the beauty of the free market, IPI? The public has voted with their dollars, Mitsubishi lost, thus the endeth the lesson.
Of course, instead of empathy for the 900 workers, the IPI kicks them when they’re down, blaming them and their union for Mitsubishi’s failure. I guess the IPI figures that we’re still suckers for the supply-side economics view of business.
Then again . . .we have Governor Rauner, Governor Walker, Governor Kasich, Governor Snyder, Governor Perry, Governor Pence…
- The Dude Abides - Monday, Jul 27, 15 @ 1:01 pm:
The Illinois business climate has nothing to do with the closing of the Mitsubishi plant in Normal. That is fact. But the IPI isn’t going to let facts get in the way of pursuing their agenda, which is tax breaks for business and lower salaries for middle class workers.
- nadia - Monday, Jul 27, 15 @ 1:06 pm:
Facing sluggish US car sales, Japanese automaker Mitsubishi said Friday it would stop making vehicles in the United States and is looking to sell its Illinois plant.
Read more: http://www.businessinsider.com/afp-mitsubishi-to-end-us-vehicle-production-2015-7#ixzz3h7FnJjP3
Let’s not let the facts get in the way of the spin!
- Formerly Known As... - Monday, Jul 27, 15 @ 1:09 pm:
The Illinois business climate may not have anything to do with the closing of the Mitsubishi plant in Normal.
But it does have something to do with Illinois’ competitiveness in the global economy, and any potential for drawing new employers to the area.
- Mercy - Monday, Jul 27, 15 @ 1:11 pm:
As the Hawk-a-roo would say… STTTRRREEEEETCH! What are you doing IPI! You gotta be bleeping me!
- walker - Monday, Jul 27, 15 @ 1:18 pm:
The IPI spin isn’t even worthy of criticism.
The company itself said it wasn’t about taxes, unions, labor costs, or whatever some want to pretend — it was about declining sales.
Our challenge is to attract another mfr to the site.
- The Dude Abides - Monday, Jul 27, 15 @ 1:22 pm:
@Formerly Known As, I’m glad you agree that the IPI is way off base here. I don’t know what you suggest Illinois do to change but I’d be interested to hear it. Maybe we should pay our workers less or give more tax incentives to companies to locate here?
- Anonymous - Monday, Jul 27, 15 @ 1:22 pm:
In 1985, when Diamond Star opened the plant, it was touted at the time as only a 10-year venture. The plant has been around 3 times longer than originally planned.
Madigan has nothing to do with it.
- nadia - Monday, Jul 27, 15 @ 1:23 pm:
Let’s throw some more tax breaks at em that always works. Less revenue for the city, county, state and less for public services and the workers, ah yes the Rauner plan in effect. But if we lower taxes they will come, really? So after we lower them will they still need tax breaks to come. Maximize profits no matter what, Rauner and hios business cronies at their best.
I apologize for the rant but these big business attitudes bring out the worst in me. Mistubishi is done in the U.S. but it won’t matter when it comes to Rauner’s spin machine.
- Secret Square - Monday, Jul 27, 15 @ 1:31 pm:
“it was touted at the time as only a 10-year venture.”
It would make no sense at all to build such a huge factory and build up all the roads, water/sewer, and other infrastructure required to support it, and intend it to last only 10 years. Perhaps it was the involvement of two companies that was meant to be temporary, NOT the plant itself?
- Anonin' - Monday, Jul 27, 15 @ 1:32 pm:
Not sure anyone in GA could have done more for this company over the years..total giveaways at every turn…Maybe mandate ISP to buy their cars and trucks…BTW drive by the west aide of the plant and see acres and acres of empty lots once housed competed cars
- just a citizen - Monday, Jul 27, 15 @ 1:35 pm:
918 more jobs lost due to a lack of competitiveness. Arggg. I guess dems would prefer the loss of the last few remaining manufacturing jobs than comprimise. Here is a thought. Why not let the Mitsubishi workers vote on the “right to be non-union” issue? Wanna bet how the vast majority of them would vote?
- islandmon - Monday, Jul 27, 15 @ 1:37 pm:
Market Share, Products offered, and Lack of Creative Marketing, end of story nothing else throw away your tin foil hats y’all.
- Demoralized - Monday, Jul 27, 15 @ 1:39 pm:
just a citizen:
Please tell me you were being snarky. I certainly hope so because nobody can be that clueless with regard to this issue (unless of course you’re the IPI).
- 1776 - Monday, Jul 27, 15 @ 1:49 pm:
@Graduated. You clearly don’t understand the issue or importance of R & D. Even Ralph Martire and CTBA believes it’s important.
You mention Cat and lament that they don’t spend 4 percent of revenue on R & D. I don’t know what they spend but 4 percent of their revenue would be a spend of more than $2 billion annually and the majority of it (80+ percent) is in Illinois). Pretty substantial.
Our high tech, pharmaceutical and others depend on it.
- Anonymous - Monday, Jul 27, 15 @ 1:49 pm:
You’re built like a car,
You’ve got a hub cap diamond star halo
You’re built like a car, oh yeah
Bang a gong, Governor
- Tha missin g - Monday, Jul 27, 15 @ 1:52 pm:
Do our plan is to be exactly like all of our neighborin’ states? I suppose this will put us on a level playin’ field so we can take business from them?
Then they, in turn, “double down” and make themselves even more pro business.
Pretty soon we have no tax base except for our non-job creatin’ middle class income taxes.
Then all we have to do is sit back and wait for the trickle down.
- Tired - Monday, Jul 27, 15 @ 1:56 pm:
Mttsubishi makes cars that no one wants to buy. The question now is what will Rauner do to promote Illinois for a new business to take over that plant? It is beyond time for him to promote Illinois and stop bad mouthing our state.
- downstate commissioner - Monday, Jul 27, 15 @ 2:11 pm:
The reason for Mitubishi’s declining sales? (And I am not pointing fingers at any one group, labor or management) was the high price of the cars and the low quality. Had a friend that purchased the special hooks the wrecker companies needed to tow it-it was always being towed. A friend of my daughters let the bank repossess his Lancer, because he couldn’t afford to keep it running.
If it is Madigan’s fault, then it must have been because he wasn’t out there pushing the cars to the garage…
- Now What? - Monday, Jul 27, 15 @ 2:15 pm:
Soon enough, the ILGOP/IPI will start blaming consumers when manufacturing, stores and shopping malls close up because the middle class can’t afford their products.
Then we’ll have to open up our shores to Asian products because they’ll be cheaper, maybe make it easier for domestic manufacturers to produce overseas. Probably encourage some sort of Free Trade Agreement.
Definitely encourage banks to ease up credit and lending practices. Make sure all kids go to college. Blame the unions for stagnating wages and ruining America, but at the same time, guilt Americans into buying American. Family values.
Anybody else miss the ’80’s?
- relocated - Monday, Jul 27, 15 @ 2:22 pm:
I used to laugh whenwe would drive by the shuttered Chrysler plant in Fenton Mo. Not because of the tragic loss of jobs, but because they had a banner sized sign that said “for sale, 3 million sq ft” as if someone would drive by and buy it on a whim. It was eventually knocked down and is awaiting redevelopment when things like auto plants close it takes the full eff8rt of the Governor, the General Assembly, and private industry working together to find new tenants.
- Ghost - Monday, Jul 27, 15 @ 2:23 pm:
Well they lost 34 m sexually harassing female workers. Mexico and china have no regulations perhaps we need to be more like them….. CEO can get a tax break for suicide nets around company housing. Silly wage regulations.
Somif they are in such bad shape why did executive compensation increase 77% from 2013 to 2014 http://insiders.morningstar.com/trading/executive-compensation.action?t=MTU
These financially struggling companies seems to be consolidating wealth in the hands of a few at the expense of the middle class….
- Rod - Monday, Jul 27, 15 @ 2:26 pm:
I would suggest that if Mitsubishi Motors North America came to the Governor with a bail out proposal for the Normal plant that cost any money at all he would reject it. The Governor does understand when a failing company can be downsized and eventually sold off based on its overall situation in the market. This is in part how he made his fortune.
- Nobody important - Monday, Jul 27, 15 @ 2:33 pm:
Demoralized -
Facts are stubborn things. No amount of Kool-aid can change the demoralizing facts. Illinois is simply not competitive. Car companies are building plants in the right to work states of the south and closing them in manditory union states, like Illinois. It’s so unfortunate that dems can’t see what they are doing to middle class families.
- Chicago 20 - Monday, Jul 27, 15 @ 2:35 pm:
It really doesn’t matter how much tax incentives the State of Illinois three at Mitsubishi.
It wasn’t the State’s business climate.
It wasn’t the wages of the workers.
It was the product that they were building did not sell.
It all starts with the product.
Meanwhile,Ford’s plants in Illinois are thriving and adding capacity and a third shift while paying union wages and benefits.
- GA Watcher - Monday, Jul 27, 15 @ 2:57 pm:
Maybe the Speaker can send Mitsubishi gift cards to all of his campaign volunteers in an effort to convince Mitsubishi to reverse its decision.
- Enviro - Monday, Jul 27, 15 @ 3:00 pm:
Four years ago the state of Illinois offered $30 million in tax incentives (EDGE) to keep the Mitsubishi plant open.
At the same time, the local union struck a deal worth millions of dollars to Mitsubishi to cut and freeze wages through 2015. Can’t say we didn’t try.
- Demoralized - Monday, Jul 27, 15 @ 3:04 pm:
Nobody important
The Mitsubishi decision had nothing to do with anything you said. Your comment was just goofy as it relates to this topic. Find a relevant example. Mitsubishi isn’t it and you look silly trying to use it to bolster your political narrative.
- Demoralized - Monday, Jul 27, 15 @ 3:06 pm:
==and closing them in manditory union states==
You might want to let Ford in on that secret.
- Excessively Rabid - Monday, Jul 27, 15 @ 3:10 pm:
Subaru’s big plant in Indiana is maxed out and, being a comparatively tiny car company, it doesn’t make sense for them to build another. So they have more customers than cars right now. This is reasonably close to their other facility and transportation is good; could be Subaru would be interested in acquiring (or leasing) the Normal plant to expand their production without the cost and risks of constructing a new plant.
- The Dude Abides - Monday, Jul 27, 15 @ 3:10 pm:
I think we should proceed with great caution before abandoning collective bargaining protections and becoming a right to work state, which Rauner would certainly like to do if he could.
GDP is higher in worker friendly states than RTW states. Twelve out of the top fourteen top performing states as per GDP are worker friendly and 5 out of 6 of the states at the very bottom are RTW.
Looking at the poverty level, eleven of the top fifteen states with the highest poverty levels are RTW. Nine of the top eleven states with the lowest poverty levels are worker friendly.
- Nearly Normal - Monday, Jul 27, 15 @ 3:11 pm:
The ugly truth is that Mitsubishi was not selling, people were not buying. The models are not that appealing to most here in the states and apparently there was only so much that sold overseas.
I hate to see good people out of work. There are a lot of folks there with skills. It would be fantastic to get another auto maker here but that costs $$$.
It’s not the unions that caused this. The local took a major hit in pay to keep this place going. It goes back to having a product that people want.
- Now What? - Monday, Jul 27, 15 @ 3:14 pm:
Nobody Important
Go troll in a RTW state with your brethren. Mandatory Union states? What gulag are you from?
- FordTough - Monday, Jul 27, 15 @ 4:03 pm:
Their cars are terrible. Buy Ford!
- Going nuclear - Monday, Jul 27, 15 @ 4:05 pm:
== The Spring Hill, TN factory was retooled years ago to build the Chevy Equinox and GM’s 4-cylinder engines. Also, production of the Cadillac SRX is moving there (from Mexico, no less). I would argue TN’s “business friendly” climate is a major reason why that plant is still in operation. ==
The UAW worked closely with GM on its plan to retool the former Saturn plant in Tennessee. Perhaps Governor Rauner could put aside his RTW rhetoric long enough to work with the union to recruit a new owner for the Normal plant.
- Former Hoosier - Monday, Jul 27, 15 @ 4:05 pm:
Pick a problem, any problem, and blame it on MJM and the democrats! I wonder how likely businesses are to come to or expand in Illinois when its’ chief executive does nothing but bash our State? Really…is that the best way to govern?
- Arthur Andersen - Monday, Jul 27, 15 @ 4:15 pm:
Anon 1:22 is totally full of baloney, including having the wrong date for when the plant opened.
- Secret Square - Monday, Jul 27, 15 @ 4:30 pm:
The project was ANNOUNCED in 1985 (I remember the announcement being VERY big news in Central Illinois) but the plant itself wasn’t up and running until 1988 or ‘89.
- nixit71 - Monday, Jul 27, 15 @ 4:40 pm:
Illinois’ manufacturing sector has been eclipsed by other states for far too long. Our legislators need laser-like focus to find a viable solution that is both business and labor friendly. Any short-term fixes will be simply a mirage. Both parties must endeavor to compromise in order to get Illinois’ potential past the summit and into the stratosphere. If we are gallant enough to dig our talons into the challenge, maybe we won’t be seen as outlanders of the midwest’s manufacturing base.
See what I did there???
We need laser-like focus
- GraduatedCollegeStudent - Monday, Jul 27, 15 @ 5:08 pm:
===You mention Cat and lament that they don’t spend 4 percent of revenue on R & D. I don’t know what they spend but 4 percent of their revenue would be a spend of more than $2 billion annually and the majority of it (80+ percent) is in Illinois). Pretty substantial.
Our high tech, pharmaceutical and others depend on it.===
I’d rather the public not subsidize the development of the next generation of gadgets that will also be obsolete in 2 years, or the development of medicines that attack symptoms rather than the underlying medical problems.
Look, in theory an R&D tax credit is great. It’s just that the practice means that its another way to stiff taxpayers and consumers.
- Mama - Monday, Jul 27, 15 @ 5:27 pm:
Gov. Rauner can not promote IL for a new business to take over that plant because he is to busy bad mouthing IL & it’s workers. I thought governors are supposed to promote their state & it’s people/workers. After listening to Rauner, what company would move here?
- CapnCrunch - Monday, Jul 27, 15 @ 5:31 pm:
Mitsubishi’s decision to shut down was not due to UAW labor costs. They could have been using robots to build their cars but if nobody buys them they are out of business. Their demise does, however, continue the departure of auto manufacturing jobs from the midwest. Between 1980 and 2013, Midwest auto manufacturing jobs declined by 33% while the South grew by 52%. Alabama experienced almost 200% growth while So. Carolina, Kentucky, and Tennessee all saw over 100% growth. In May, Porsche opened a new $100 million facility in Atlanta, Georgia which replaced a 17 year old headquarters building and among the 450 people working at the new facility will be dozens who relocated from Chicago. Also in May, Volvo announced that it would break ground on a $500 million factory near Charleston, South Carolina that could provide up to 4,000 jobs. This trend is not our friend.
- RNUG - Monday, Jul 27, 15 @ 6:13 pm:
The world auto market is totally crazy. Right now an independent in Indiana has just started building the small Mercedes wagon under contract for export to China. Who would have ever expected that, a German company outsourcing to an American company for export to Asia?
- Wordslinger - Monday, Jul 27, 15 @ 6:37 pm:
–Illinois’ manufacturing sector has been eclipsed by other states for far too long.–
And those other states would be California and Texas.
Illinois is third among the 50 in manufacturing output and employment.
You make-it-up ideologues never quit.
Still, it should be noted that manufacturing is a smaller piece of Illinois’ much larger and diverse economy when compared to other Midwestern states.
Here are latest facts from the National Association of Manufacturers for some of the states mentioned today:
Illinois Manufacturing Output
2008: $80B
2013: $101B
14% of GSP
12,853 firms
579,600 jobs in 2014
9.9% of non-farm
$78,971 avg. annual
——-
Indiana Manufacturing Output
2008: $80B
2013: $95B
30% of GSP
7,283 firms
523,200 jobs in 2014
17.3% of non-farm
$70,333 avg. annual
——–
Michigan Manufacturing Output
2008: $80B
2013: $82B
19.9% of GSP
11,466 firms
574,500 jobs in 2014
13.8% of non-farm
$74,907 avg. annual
———-
Wisconsin Manufacturing Output
2008: $48B
2013: $53B
18.9% of GSP
7,970 firms
474,900 jobs in 2014
16.4% of non-farm
$66,844 avg. annual
—-
And Jack, this one’s for the economic model you wish on all of us.
Mississippi Manufacturing Output
2008: $16B
2013: $15B (is a decline supposed to happen in a RTW state?)
14.4% of GSP
2,000 firms
141,800 jobs in 2014
12.7% of non-farm
$55,725 avg. annual
Google “National Association of Manufacturers state reports” for all sorts of facts of use here on Planet Earth, if not the average IPI dorm-room chin-wag.
- CapnCrunch - Monday, Jul 27, 15 @ 6:42 pm:
Indiana production, German car, China market. Odd indeed but the arrangement must make sense in economic terms. From data I quoted earlier I should add that Indiana was the one Midwest state that did not lose auto jobs but actually gained 1%.
- Wordslinger - Monday, Jul 27, 15 @ 6:53 pm:
RNUG, if I’m shelling out Mercedes money, I want it built in Stuttgart by a dude named Hans.
- RNUG - Monday, Jul 27, 15 @ 8:01 pm:
-Word-,
the Mercedes plant that was at capacity and couldn’t build them was down south here in the US.
- RNUG - Monday, Jul 27, 15 @ 8:13 pm:
==and closing them in manditory union states==
Interesting statement considering one of the new vehicles I’ve been looking at is a Ford product built in an RTW state in a union plant
- CapnCrunch - Monday, Jul 27, 15 @ 8:32 pm:
The Indiana contractor that Mercedes is using is a UAW shop while the Alabama plant is not. As I said earlier it is economics which matters, especially global economics.
- RNUG - Monday, Jul 27, 15 @ 8:53 pm:
== The Indiana contractor that Mercedes is using is a UAW shop while the Alabama plant is not. ==
- CapnCrunch - , thanks for mentioning that. I forgot to include it. I had a tour of the commercial portion of that plant last month and it’s quite an innovative operation in terms of flexibility.
- Arthur Andersen - Monday, Jul 27, 15 @ 9:11 pm:
Word, in terms of models, the number of German Mercedes is shrinking every year, especially on the lower half of the spectrum. Shell out S-Class dough, though, and you can count on the Krauts building that beauty.
I just bought an “American car” assembled in Canada (by the UAW) with an engine assembled in Mexico. I know how you feel, RNUG.
- Arthur Andersen - Monday, Jul 27, 15 @ 9:31 pm:
CapnCrunch, you have some good data there about the auto jobs trends. It’s important to remember that the 30 years you reference cover the end of the Big 3/Detroit dominance of the industry as well as the southern shift of assembly. Who drove a Toyota in 1981?
The new Porsche HQ is basically a centralization of some functions they had scattered around the country iirc. (They shared a suburban Chicago office building with the FBI. The Feebs tried every excuse in the book to try to borrow cars.) The Volvo assembly plant, with a Chinese company building in America to make Swedish SUVs, wow.
- RNUG - Monday, Jul 27, 15 @ 9:44 pm:
== I just bought an “American car” assembled in Canada (by the UAW) with an engine assembled in Mexico. ==
Nothing really new under the sun. I have a 25+ year old big 3 truck assembled in Mexico. And some of the VW’s Mrs’ RNUG has owned over 30 years were assembled right here in the US (but all the more expensive convertibles came from Wolfsburg, Germany).
This whole migration of automobile country of origin thing has been driven by federal government regulations over the years. Back in the day, when the Feds started to dictate Corporate Average Fuel Economy (CAFE) standards, they left a loophole. Cars assembled in Canada and Mexico were not included in the CAFE calculation that determined fines, so the big 3 moved their full sized car production across the river / lake. This game continued for a lot of years. Plus, once the plants were either established or expanded, it was easy to continue producing vehicles there. Then the Feds changed the rules by requiring percentages of content to be considered domestic versus import, so the companies just built more parts here and assembled them there or, in the case of the Japanese especially, built the components there and assembled the vehicles here. It was all a shell game driven by Federal regulations.
If you want to know the “country of origin” (more likely assembly these days), all you have to do it look at the VIN number. In the first digit position, #1 is US, #2 is Canada, #3 is Mexico, %4 (I think) foreign assembled in US.
- Wordslinger - Monday, Jul 27, 15 @ 9:48 pm:
AA, RNUG’s story did prompt me to take a look at where they have manufacturing and assembly plants.
Mercedes first manufacturing plant outside Germany was in Argentina in 1951 (insert joke here).
Assembly plants all over the world, but a lot of manufacturing of all classes, including some S, in Mexico from locally sourced parts.
- Chicago60609 - Tuesday, Jul 28, 15 @ 8:43 am:
Even posters care only about politics, apparently. Over 1,200 Illinois residents are going to lose their livelihoods, and it is only sport here to assign blame.