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* USA Today reporter who covers business automotive news…
An automotive site selection expert when I asked whether Illinois has a shot at Toyota-Mazda plant: “No one’s going to locate there."
— Nathan Bomey (@NathanBomey) August 16, 2017
posted by Rich Miller
Friday, Aug 18, 17 @ 9:18 am
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Bloomington Mitsubishi facility, and a qualified experienced work force. Guess that doesn’t matter
Comment by Almost the weekend Friday, Aug 18, 17 @ 9:21 am
Guess they haven’t heard about our great Rivian deal, have they. Of course, Rivian’s more in the business of car storage right now than car production…
https://tinyurl.com/y8n5ysdy
Comment by Anon221 Friday, Aug 18, 17 @ 9:22 am
===An automotive site selection expert when I asked whether Illinois has a shot at Toyota-Mazda plant: “No one’s going to locate there.”===
… with a governor that bad mouths Illinois at every turn… that doesn’t help in getting them to come here too…
I never understood why a sitting governor would bad-mouth their state while still being seated as governor.
You’re the governor. You’re undermining yourself.
Comment by Oswego Willy Friday, Aug 18, 17 @ 9:24 am
Term limits would fix that opinion right away.
Comment by don the legend Friday, Aug 18, 17 @ 9:26 am
From the expert: https://twitter.com/NathanBomey/status/897883501646802944
Comment by MacombMike Friday, Aug 18, 17 @ 9:28 am
Sad commentary on Illinois hostile environment for business.
Even sadder Democrats resist every proposed reform to attract and retain employers
Comment by Anonymous Friday, Aug 18, 17 @ 9:32 am
To the point just made by the gentleman from Oswego, Rauner bad-mouthed Illinois when asked about this specific project. To wit:
“We should be an economic power, but unfortunately years of mismanagement, red tape and tax increases have hurt the state’s business climate,” Rauner spokeswoman Laurel Patrick said in an email. “… We need fewer regulations, lower workers’ compensation costs and lower property taxes in order to attract more jobs to our state.”
Way to roll out the red carpet.
Comment by SAP Friday, Aug 18, 17 @ 9:32 am
I disagree with Mr. Bomey’s take on our geography hurting our changes. If anything our geography is ideal. An area like Effingham or Mt. Vernon or Minooka/Shorewood or anywhere in the Metro East - all areas with intersecting interstate systems - are ideal for car plants. He is spot on, though, when it comes to his other “hot takes” on the matter.
Comment by Curl of the Burl Friday, Aug 18, 17 @ 9:36 am
Ford is investing $1.1B to expand its South Side area plants.
C-U’s own multi-billion auto parts baron Shahid Khan is building a new plant on the South Side.
Real private investment trumps twitter snark or Rivian boondoggles every time.
Comment by wordslinger Friday, Aug 18, 17 @ 9:37 am
Guessing OH and IN are strong contenders due to their proximity to an existing Toyota plant in Georgetown, KY.
Comment by City Zen Friday, Aug 18, 17 @ 9:37 am
- SAP -
First, thanks. Second, your tip-in to truly make the point is important.
There’s a continued narrative that to Rauner and his Administration to get turnaround agenda items, and they are more important than talking up Illinois.
It’s imperative to the Raunerite Agenda to bad-mouth Illinois, at the cost of the state’s economics.
That’s Rauner in a nutshell.
Comment by Oswego Willy Friday, Aug 18, 17 @ 9:38 am
Its more than just “Rauner bad”. They were saying the same thing before Rauner was governor. It is taxes and fees and over regulation, and the fact that several other states incentivize much more aggressively and better than Illinois.
Comment by Tequila Mockingbird Friday, Aug 18, 17 @ 9:40 am
“You’re the governor. You’re undermining yourself.”
It’s all part of the plan.
Comment by Nick Name Friday, Aug 18, 17 @ 9:41 am
I honestly think they could do a deal with Rivian and buy them out. It might be cheaper to retro-fit than to try and build from scratch a new 1000 acre complex. The infrastructure is already there. The workforce is already there or can be easily trained up. With EDGE back, some incentives are already there. Rivian, to my knowledge, hasn’t gotten any credits yet, and they are making money on the VWs. With Rivian’s sketchy background, it might be the best money-maker for them.
Comment by Anon221 Friday, Aug 18, 17 @ 9:43 am
Oh boy, the “blame it all on Rauner” folks just can’t stop themselves. This diminished level of sustained and new investment started before Rauner and won’t get fixed until the Dems (yes I hold them responsible) decided that whats’ best for Illinois comes before what’s best for them and their union donations. Yes a day may come again when the states around us turn back to greater union governmental regulation but until then we will lose more jobs and more revenue. But since the Dems keep getting re-elected why should they care.
Comment by NeverPoliticallyCorrect Friday, Aug 18, 17 @ 9:44 am
If only Illinois got Subaru instead of Mitsubishi. Sure didn’t look that way in the 90’s though.
Comment by City Zen Friday, Aug 18, 17 @ 9:44 am
221 - good points about Rivian. I have always been skeptical of them. And yes - the EDGE credits would go a long way.
The plant would not need to be union, either. Continental Tire’s workers have rebuffed every attempt by the UAW to unionize.
Comment by Curl of the Burl Friday, Aug 18, 17 @ 9:48 am
Yes, if only Pat Quinn were governor today, businesses would be competing for the right - nay, the privilege! - of locating to this economic paradise.
Comment by JB13 Friday, Aug 18, 17 @ 9:55 am
Spin it anyway you want, but our tax structure, labor work rules, and uncertain financial situation make Illinois a terrible choice for new plants. the EDGE credits which may or may not be extended are transitory and uncertain to CFO types. Cash and capital expenditures on plants will be deployed where the owners/shareholders can reap the best ROI. News flash to our pols neither Rauner nor MJM can stop that.
Comment by Texas Red Friday, Aug 18, 17 @ 9:55 am
Somebody better mention that to Fiat, which just spent a chunk of change retooling their Rockford plant.
Comment by Dirty Red Friday, Aug 18, 17 @ 9:56 am
Its workers comp. I know someone who has a single employee working for his LLC. He has to pay $14,000+ annually in workers comp cost and has never had to file a single claim. He has to also deal with audits even though there has never been a claim. Hard to make a profit that way. Can only imagine what the cost and hassle is for a large factory.
Comment by Reality Friday, Aug 18, 17 @ 9:56 am
I’m so tired of these unnamed sources. Let me guess, has Nathan Bomey been “hearing” things from people?
Comment by Jocko Friday, Aug 18, 17 @ 10:00 am
The comments section in this blog are getting pretty surreal these days. Does this mean that if the Governor engaged in rampant boosterism the problems that would prevent an automobile manufacturing company from relocating or starting up a new factory in Illinois would just magically vanish?
Sheesh.
Comment by Louis G. Atsaves Friday, Aug 18, 17 @ 10:02 am
Lest we forget - I recall our Governor saying that he had hundreds of companies that would relocate to Illinois if only the GA would pass his TurnAroundAgenda.
Remember that “Job creators are excited about Term Limits”?
Comment by illini Friday, Aug 18, 17 @ 10:09 am
Companies like a state with economic stability. At every turn, when there is an opportunity to start paying down some of our debt, the Governor balks at the idea. His recent refusal to issue bonds to pay down unpaid bills which would save 2 million dollars a day in interest is just the latest example.
Vendors who have signed contracts with this administration are wondering if the state has any intention of ever paying them for the services they have provided as the Governor has shown that he is in no hurry what so ever to do so.
Things were bad when Rauner assumed office but across the board he has made things worse. I’m not surprised in the least that a large company would be reluctant to locate here. I’m convinced that it’s not going to get any better until we get some new leadership.
Comment by The Dude Abides Friday, Aug 18, 17 @ 10:09 am
Folks, Illinois has one of the worst business climates in the nation and apparently our government is trying to achieve the highest tax burden. We are not California, where some people don’t care and will pay anything to live there. Illinois is generally NOT nice. We have to make the state competitive or the state will continue to decline.
Comment by Ron Friday, Aug 18, 17 @ 10:12 am
Jocko - perhaps those “unnamed sources” in the auto industry are just like anyone in politics or sports and are not authorized to speak on behalf of their employer(s)?
Also - not to get into a debate about Mr. Bomey but his works seem pretty solid:
http://detroitresurrected.com/index.php/articles.
Comment by Curl of the Burl Friday, Aug 18, 17 @ 10:16 am
Ron, I have to respectfully disagree. Illinois is very “nice.” True, it lacks mountains and oceans, but the quality of life, either urban or rural, can be quite high.
Comment by Jibba Friday, Aug 18, 17 @ 10:27 am
===Does this mean that if the Governor engaged in rampant boosterism the problems that would prevent an automobile manufacturing company from relocating or starting up a new factory in Illinois would just magically vanish?===
- Louis G Atsaves -, lol
Counselor, you think a sitting governor bad-mouthing the state he’s been governor of fir well over 2 years, nearly three helps?
If I’m a company, and a goner it continues to bad-mouth his/her state, why would I go there.
Further…
“If things are so awful with Rauner governor now… What’s going to change in a Raunet second term?”
lol
Hysterical - Louis G Atsaves -
Comment by Oswego Willy Friday, Aug 18, 17 @ 10:28 am
===their union donations.===
lol… those pesky unions.
Collective Bargaing, Prevailing Wage…
People make too much money.
Thanks for this. Speaks volumes. It’s about hurting people. That’s Rauner.
Comment by Oswego Willy Friday, Aug 18, 17 @ 10:30 am
The reason any business would invest or not invest will be the return they can expect. The state already has high corporate taxes and high personal taxes without a commensurate level of services from the state. The state’s budget structure ensures that there is no way to reduce taxes and they are most likely going to rise in the coming decades. Eventually someone will not get paid - permanently. Probably not the pension, probably not the GO, maybe some vendors.
Comment by Mike Royko Friday, Aug 18, 17 @ 10:31 am
And about climate, those sorts of assessments tend to be less than quantitative and rely more on feelings. A state that pays its bills, has a plan for improvement, and generally functions can overcome other impediments if the logistics, infrastructure, and markets are favorable, which ours generally are.
Comment by Jibba Friday, Aug 18, 17 @ 10:33 am
TR, I guess that’s why Ford is expanding in Illinois for $1.1B, Fiat retooled Belvidere for $350M and Flex N Gate is building another Illinois plant.
Comment by wordslinger Friday, Aug 18, 17 @ 10:37 am
Ladies and gentlemen. This is more about the state of Illinois than Rauner. Service industry jobs might be ok. But folks, its tough to compete in this state against the global economy.
Comment by blue dog dem Friday, Aug 18, 17 @ 10:40 am
Most of us agree that Illinois could improve its business climate. I have yet to hear a justification for the top elected official in the state to discourage potential new businesses from considering Illinois.
Comment by SAP Friday, Aug 18, 17 @ 10:53 am
==TR, I guess that’s why Ford is expanding in Illinois for $1.1B==
All of Chicago’s automotive eggs are in the Ford Explorer basket. Let’s hope low gas prices continue.
Comment by City Zen Friday, Aug 18, 17 @ 10:57 am
== Companies like a state with economic stability. At every turn, when there is an opportunity to start paying down some of our debt, the Governor balks at the idea. … ==
and
== A state that pays its bills, has a plan for improvement, and generally functions can overcome other impediments if the logistics, infrastructure, and markets are favorable, which ours generally are. ==
Yes, Illinois has problems but also has some advantages. The problems can be partially reduced by actions that are within the Governor’s power. But all his actions to date have been negative: running up debt, not reducing it, bad mouthing the state instead of championing it, etc.
Stepping back and looking at it objectively, he’s acting like a CEO who is trashing his own company in the hopes of taking it into bankruptcy, shedding the debt, buying the company’s assets from the stockholders cheaply, and taking it private … with future plans to profit from going public again at a later date. In other words, Rauner is treating the state just like the distressed companies he used to buy up and bust out.
Comment by RNUG Friday, Aug 18, 17 @ 11:12 am
But, but……gov has dozens of business deciders ready to move here, if only we had term limits and fair maps….
Comment by Langhorne Friday, Aug 18, 17 @ 11:13 am
Jibba, you may think the state is nice. I actually agree. But, most people don’t. No one is moving here because of weather or scenery. California can have the massive income tax rates because it’s worth it to some people. Illinois can’t do that. No one is dying to live here.
Comment by Ron Friday, Aug 18, 17 @ 11:18 am
Oswego/ you are nothing if not a die hard denialist. Sure why not make a billion dollar plus investment in a heavily unionized state with the highest RE taxes, second highest sales taxes, worst unfunded pensions, crumbling infrastructure and awful fiscal climate. Yea Toyota won’t look at Illinois because it has a governor trying to put they some reforms neither the Dems nor unions support. You are a total refusenik in terms of facing reality
Comment by Sue Friday, Aug 18, 17 @ 11:32 am
Aw - Sue - lol
All those words,
Rauner wants people to make less money.
Rauner wants to end prevailing wage and collective bargaining.
It’s just true. Trades included.
Comment by Oswego Willy Friday, Aug 18, 17 @ 11:40 am
Oswego- with the pro labor policies Illinois is stuck with compared to its neighbors on every boarder- people are already making less money because of the lack of job growth. Did you notice in the Trib today- as national unemployment declined last month it ticked up here. Say what you want but Unions running govt policy is not good for anyone but union leaders
Comment by Sue Friday, Aug 18, 17 @ 11:48 am
Chicago is a Boom Town.
Comment by DeseDemDose Friday, Aug 18, 17 @ 11:50 am
So willy,
The reality of prevailing wage is this.
I have to sell my guy at 20 an hour to make 5points.
But the state contract required prevailing wage be paid.
SO now I have to pay my guy 35 an hour, because prevailing is 25 plus his bennies at 10 more.
SO i bid that deal at 35 an hour, and it goes to an IN contractor as he came in at 20,.
Yep prevailing wage is wonderful to promote new business to come to IL.
And i made zero.
hello?
Comment by sharkette Friday, Aug 18, 17 @ 11:50 am
Or beyter yet. will and all pro union..
those unfunded pension, will be bust.
And when you turn 50 and go to apply.
The insurance underwritten policy will pay pennies on the dollar.
Add to it the investment losses as rates are 2, or 3 or 8, but the market will correct and that pension we all paid.
is worthless.
Amalgamated Clothiers, GCIU are 2 I can think of.
Oh yea, Motown too..
State of Illness is next. It is not mathematical possible to not be next.
Fair wages produce more business and more growth for all. Inflated wages, do not
Comment by sharkette Friday, Aug 18, 17 @ 11:56 am
OW, keep you head buried deep in the sand.
Comment by Ron Friday, Aug 18, 17 @ 12:02 pm
Don’t feed the troll, no matter the tone.
Comment by Oswego Willy Friday, Aug 18, 17 @ 12:03 pm
===State of Illness is next.===
States can’t go bankrupt.
Comment by Oswego Willy Friday, Aug 18, 17 @ 12:04 pm
Illinois does not operate in a vacuum. It has to compete nationally and globally. We clearly can’t compete as things stand now. But why change? Illinois hasn’t even recovered from the last recession as the rest of the country booms.
Comment by Ron Friday, Aug 18, 17 @ 12:05 pm
Yep, things are just fine in ol’ Illinois. Only West Virginia is losing population at a faster rate. No need to change anything other than increase our taxes. That will certainly encourage people to stay.
Comment by Ron Friday, Aug 18, 17 @ 12:10 pm
Let’s protect unions workers at the cost of everyone else. I mean, 15% of the workforce is more important than 85%, right?
Comment by Ron Friday, Aug 18, 17 @ 12:12 pm
Bomey is a reporter, not an automotive expert.
Bomey, wrote a book on the Detroit bankruptcy not on the automobile industry.
Comment by Chicago 20 Friday, Aug 18, 17 @ 12:14 pm
Ron…I don’t know who”most people” are who dislike Illinois, but good thing pur tac rates are nowhere near Californiam. And most people are actually willing to talk about reforms, especially when they are accompanied by a reasonable analysis of their expected results. Unlike anything Rauner has proposed.
Comment by Jibba Friday, Aug 18, 17 @ 12:23 pm
Sue the reality is that Ford is investing $1.1B in its South Side plants.
That investment was negotiated by the UAW as part of its master contract.
Comment by wordslinger Friday, Aug 18, 17 @ 12:29 pm
Shall we place bets on whether Illinois lands the Toyota factory?
Comment by Ron Friday, Aug 18, 17 @ 12:36 pm
In addition to the assembly plants, we have, as word noted, supplier plants like Flex-N-Gate in Urbana and Chicago and Continental Tire in Mt. Vernon. The outlook is not as bad as you Pollyannas make it out to be.
Comment by Arthur Andersen Friday, Aug 18, 17 @ 12:45 pm
sharkette - In Illinois, wages prevail, not common sense.
Comment by City Zen Friday, Aug 18, 17 @ 12:55 pm
AA, clearly us Pollyannas can’t see that Illinois has not recovered the jobs lost from the recession and is losing people at a faster rate than anywhere in the nation but West Virginia.
Comment by Anonymous Friday, Aug 18, 17 @ 1:00 pm
Marion, Illinois has a large Aisin plant. Aisin is partially owned by Toyota and manufactures parts for automobiles at this location today. No one seems to be talking about Southern Illinois as a location for other production, but this 15-year-old plant has over 2,400 employees and is doing just fine. Abundant land and a progressive city government make Marion an attractive location for industry.
Comment by Anon Friday, Aug 18, 17 @ 1:57 pm
True, Illinois is less “competitive” than some other states. I, for one, am not clamoring for Illinois to race Indiana, Missouri, Wisconsin, and Kentucky any faster to the bottom, in terms of quality of life.
If you think Illinois’ property taxes, corporate taxes, and prevailing wage laws have more than a marginal effect on why larger businesses do or do not decide to locate here, then you really don’t know what you’re talking about. They want incentives, since most states trip over themselves to hand them out. They’re willing to sacrifice a little on the amount of incentives in exchange for stability and the aforementioned minor issues. But, the bottom line is tangible incentives. Workers comp (insurance) reform might have a small impact and so might long-term fiscal stability, but they are small potatoes in the pot of incentives.
Comment by Downstate43 Friday, Aug 18, 17 @ 2:17 pm
It would be great if Marion, IL got this plant. They won’t though.
Comment by Ron Friday, Aug 18, 17 @ 2:53 pm
I don’t really know how the quality of life in most of Illinois is better than WI or MO. KY sure, and IN is one of the worst places in the country.
Comment by Ron Friday, Aug 18, 17 @ 2:54 pm
@Ron
The governor of Missouri, Eric Greitens, unilaterally lowered the minimum wage in the state from $10(set to go to $11 on Jan. 1, 2018) to $7.70 in July.
That’s about $300 per week, $15,000 a year. Isn’t Illinois’ minimum wage low enough to ensure poverty for all that earn it?
Comment by dbk Friday, Aug 18, 17 @ 3:22 pm
==I, for one, am not clamoring for Illinois to race Indiana, Missouri, Wisconsin, and Kentucky any faster to the bottom, in terms of quality of life==
Rockford, Decatur, Danville, Effingham…how is their quality of life so much better compared to their counterparts in neighboring states?
Comment by City Zen Friday, Aug 18, 17 @ 3:34 pm
Why build an auto plant in a union state that’s surrounded by right to work states?
Comment by Steve Friday, Aug 18, 17 @ 4:03 pm
Just like I said, Bomey doesn’t have a clue.
Comment by Chicago 20 Thursday, Aug 24, 17 @ 8:19 pm