Uff-dah! It's been a long road, but after many months of consideration, a Norwegian automaker apparently has chosen Elkhart as the site for its new electric car production site--a $43.5 million dollar investment that the company says will create 415 much-needed jobs in the recession-battered area.
According to a report by The Elkhart Truth, the Elkhart City Council was to meet Monday evening to vote on a proposed tax abatement package to assist Think, which had also considered production sites in Michigan and Oregon for the production facility.
A press conference is slated for Tuesday, including the economic development body for the county and Indiana Governor Mitch Daniels, is expected to make the official announcement. Coming nearly a year after President Barack Obama visited this northern Indiana county to unveil his economic stimulus plans--choosing the area to illustrate the depth of the economic crisis--Elkhart will have a moment in the spotlight for a positive development.
Think is to become the third electric vehicle manufacturer in the area. Navistar International Corp. plans to build all-electric delivery trucks starting next year with help from a $39 million federal grant. And Startup Electric Motors Corp. intends to make electric-hybrid drive trains to be installed in various vehicles, starting with a joint venture with Gulf Stream that would make light-duty electric trucks.
Elkhart has the manufacturing base, transport links and workers to do the job--thanks to the once-thriving recreational vehicle industry. Now the town needs only learn the toast to ring in some good fortune. As the Norwegians say: Skal!
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In the lead sentence, I think the author meant "electric" car, not "electronic" car.
Congrats to Elkhart on landing Think production. As manufacturers struggle to keep foreign-built products affordable for Americans, I hope we see many more of these investments in US-based production.
I would like more information on these electronic cars. Like when will they be for sale to the public and some mileage info.
I'd be the first in line to buy one.
Jim
Well, this would be a much needed boost to a recession ravaged place.
The recession and layoffs started when gas was $4.00 a gallon a couple years ago, then Katrina hit and they needed instant housing for those people, so some people went back to work for awhile, then the economy took a nose dived and plants went dark all over northern indiana. And there still closed for the most part. The units that were sent to New Orleans were rejected by the new tenants because they could get a slick lawyer to complain about the smell of the adhesives used to but the unit together with. So all of a sudden you have a bunch of people being given a free place to live and they want to sue the company. And at the same time many of the trailers and doublewide sent down there were stored in large field before they were to be distributed, and many of them were torched and destroyed before anybody even had them to live in. The companies never recoverd from the lawsuits, and the insurance refused to pay to cover many of the burned unit. So this new car company comes into an area of very skilled workers who have pride in the workmanship and know full and well what it takes to put in a full days work. The University of Notre Dame is just 20 miles west of Elkhart and i'm sure they'll be involved somewhere along the line in there research and technology departments. They need to get a battery manufacturer to come to the area also. I've been to the Electric Motor Car Company, very cool set up there. And they're also just really starting out. All the Amish around the area have solar panels and windmills churning out 24 volt of power for there personal needs. And they also have cell phones, but don't tell anybody.
The Amish with cell phones? They must very different from the ones in Pennsylvania. Hell, maybe they have them too, it's been a while since I've been there.
This is for "sweaver209" #2.1 - Tue Jan 5, 2010 7:20 PM EST.
Please check "there", "they're", and "their" in an English dictionary.
The Amish use solar panels to charge the batteries in their carriages for powering the tail lights. It is not that they will not use technology, they will use rational and sane technology that does not harm the earth.
Total BS. Like Elkhart would be getting all these jobs without the presidential, and MSNBC, attention. If I was out of work I'd be pissed. How about Detroit, they could use some jobs too?
Where is your anger directed? Blame the big 3 for the 30+ yrs of horrendous decisions/management that lead to where Detroit is.
"A press conference is slated for Tuesday,"...."Elkhart will have a moment in the spotlight for a positive development"
Good news if you need a job, and live in Elkhart. But yes Ray, you can bet these companies are getting some absolutely amazing deals and tax breaks so that Obama's pet project can create some headlines.
P.S. These are the same types of provisions and tax breaks that many communities are trying now to rescind from companies in order to fund their local governments.....be careful Elkhart, you may get jobs but if the deals are too sweet you'll be paying back your wages in taxes because the employers aren't paying any.
Let me see now......a foreign auto company is coming to the USA to set up a factory and employ over 400 Americans and revitalize a depressed part of the economy, and perhaps our President's influence had something to do with it.
And this is a bad thing?
What am I missing here?
StlRay is correct. Lets flip the script and pretend we are in another city in another country in the position of wooing a multinational. This should ring a bell as it happens every day.
what do they look for? low labor costs, minimal environmental standards, tax abatements and other incentives.
what does the city get?
does wealth trickle into the community? nope, its sucked out by the executives and the board of directors.
is knowledge transferred to the locals? nope, engineers and executives are brought in from the multinational's home country and knowledge remains in-house.
bottom line? the company is leveraging this as a PR event and looking for a cheap labor source. if the city want's to negotiate guess what? they go to the next city willing to accept lower standards.
welcome to the world of global capitalism's race-to-the-bottom!!!
Well paying the wages of 400+ Americans vs paying the wages of 400+ Asians... That is good, wherever the city is.
If the companies were looking for low labor costs, minimal environmental standards, tax abatements and other incentives. They would have gone just as easily to China or other asian countries... just like 100's of US companies have done or are doing. I don't agree with the training, European companies are very VERY dedicated in training it's personnel.
I have worked in the manufacturing environment for 13+ years and that is what I have seen. I'm glad that there are companies willing to invest in US labor... now we need to see how to bring all those US companies back home.
akashalives,
earning pennies a day is not a good thing whether its 1 person or 10,000.
The very things you claim would be found in other countries are found here, right now! Corporate libertarians have whittled away our rights, our consumer protections, our environmental standards, and our unions. So, you see the the US is the new 3rd world. That is why we are still in the running.
(Think lead poising in children's products and ask yourself how these products made it to market in the first place???)
What we need to do is punish US corporations for taking labor overseas instead of employing our own citizens.
The rising tide does not lift all boats, it smashes them.
Lots of areas could use help and if it were not for greedy and stupid management they would be doing fine. It is up to the people to help revitalize their areaa. Go to the SBA, submit a business plan and get going producing something.
so what's you point Stl Ray? there are 415 jobs at stake - does it matter if they are in Indiana, Michigan or Oregon? And I'm quite sure this company checked with MSNBC before they decided to invest 43.5 million...
and maybe you didn't notice Stl - but a ton of money went towards the auto companies in Michigan to keep the workers who are working on the job.
interesting how someone can spin 415 new jobs into a "bad thing".......
Elkhart Shmelkhart- what is this place, the center of the universe? It's not like it's the only city with recession troubles out there
so they should reject the jobs because the company won't put a factory in every hurting community in the COUNTRY? you have no sense of perspective. or reality.
It isn't as if Elkhart needed to be the focus of MSNBC. Their economy was based on campers, RVs, etc. They were hit as hard as anywhere else. It's great to see they landed something this big. Also, the fact that this is part of a transition from the good old days of driving aimlessly down the highways to transportation that can give us that feeling again... that's just beautiful.
Elkhart shmelkhart! How would you like it if someone said that about your town, you jerk. It's not the city with recession troubles, it's the people that live there. Families trying to get by just like in every other city here in the U.S. and around the globe. I can't believe someone would besmirch good fortune. Not the attitude to have in this day and age. Even if you are down on your luck, you should not be jealous of others good fortune.
I never 'besmirch'ed anyone- I'm just sick of hearing about Elkhart. If they or any other city have good fortune then more power to 'em. As far as the "jerk" comment- name calling is never justified so I don't know where you get off with that. I'm entitled to express my opinion as anyone else is. If you don't like it, go somewhere else.
without a doubt
"I'm sick of hearing about Elkhart" - here's a simple solution - don't go to the "Elkhart Project" site! - as you say "if you don't like it - go somewhere else"!
b dune
This has nothing to do with you so if you don't like it- go somewhere else yourself and stop trolling about trying to create arguments
withoutadoubt
and what exactly does it have to do with you? guess you havn't heard but you don't decide who gets to post....
and I did choose to get informed on this topic - have roots in that area - so I choose to read it -
as for you - the intial statement stands - quit your whining and stick to reading articles you enjoy then you won't need to complain - I'm sure they will be articles with lots of pictures and the print in large letters.
wowie aren't we insultive!
ya know, I had this big nasty retort all planned but... no, not worth it. What I exchanged with pablocruz above was between us and your two cents worth is nothing more than an invitation to a fight. Well, sorry, but I'm not going to stoop down to that. Try some anger management, meditation or something to help you relax a little. Have a nice day. Oh and if you're going to retort again to my retort, I can save you some keystrokes because you just made my ignore list.
withoutadoubt
even though I made your "ignore list" - you'll peak anyways...next time you come on a vine realize your comments are open to everyone to respond to - if you want a private conversation, send a letter.
your whining is perfect - I'm sure when you played at the school yard if things didn't go your way you probably took the ball and went home....
so much for 'ignore' working- looks like I'm stuck
b dune- that's a weak, lame analogy. But since you brought it up, more accurately you sound like the school yard bully who has to pick on others to feel better about yourself. The same types grow up trolling online, looking to stir up troubles. Does being rude & insulting to me make you feel better about yourself? Fine, if so go ahead.
No one mentioned the tax break that the city is looking into. While other cities around the country are looking at ways to reduce the tax breaks, Elkhart is going to give one. Now lets see, what does tax money pay for? Everything. How much tax will the city get from 415 families?
The article did mention it- its called abatement. That is on property taxes. Newsflash, they werent getting any taxes from undeveloped land or abandoned factories. In addition to commercial property taxes, the families that would have lost their homes can now pay their own property taxes. Not to mention go out and buy things on which they pay sales tax on. Not to mention create demand for which other companies will have to hire people to fulfil the demand. I am a liberal democrat and even I can see the common sense in abating those taxes for Think. Think big picture.
john - like you theory - guess no one should build any new plants - afterall, what could 415 families with incomes provide any community - 415 workers at $40,000 ( just a number to use for reference) = 10.6 million dollars - better they stay unemployed - less paperwork that way.
and John - don't you think the other towns in Michigan and Oregon offered tax relief in some form or another?
LeeAnn - great explanation - pretty sure though John will not see or even look at the "big picture"
Why should US grant money (never to be repaid) from MiddleClass FamilyTaxes go to a FOREIGN COMPANY ? Every Penny should come out of the pockets of the fools who ran GM's EV-1 electric vehicle into oblivion in 1990 and squandered a 20 year headstart and walked away with 100's of millions of $'s in compensation. Then they should all be sterilized to remove that kind of stupidity, greed and evil from the human gene pool. And what is Ford & GM doing now ? NOTHING ! We have better batteries in our laptops than our cars. Why ?
Why are you people complaining about a foreign company bringing jobs to America? You should be complaining about domestic companies sending our jobs overseas. I just don't get it.
Yeah, he is right, Elkhart might not have gotten the project had it not been for the extra media coverage. Big deal. It was smart of Think to capitalize on it. They have a new brand, new product etc. They need all of the free PR they can get. 415 jobs is huge in that community. If you want something for yourself, the best way to get it is to be happy for your brother when he gets it.
Way to go Think!
Regarding those complaining: it is one of the consequences of handouts in any form, whether it be tax breaks or outright subsidies (at least at the Federal or State level). Seems to be human nature to raise a stink about it, i.e. so-and-so is getting a handout, I should get one, too. (Sort of like the current uproar over Nebraska getting a tax exception in exchange for its senator's vote for the health care bill.)
Here's the problem as I see it.. I am happy for the jobs coming to Elkhart, but intsead of offering foreigners to invest in OUR COUNTRY, let's tax the crap out of US COMPANIES for making their products in overseas markets so the jobs return back home, so what does them mean. Instead of going to Walmart, Kmart or Target for a 5 dollar (made in CHINA) towel that same towel costs 15 bucks and is made by a US worker in the US. The purchaser pays a sales tax, the employee pays payroll tax and the manufacturer pays a tax, the whole community is better off. I am sick and tired of buying products made in CHINA and other Asian countries, the products are cheap and don't last. I for one am willing to pay for higher priced goods built in America. People wake up...We fought against the Chinese in the Korean War and they are a communist society..
Wishful thinking....there was one reason why corporations moved their enterprises overseas, and to primarily third world countries to begin with, profits. Profit is the only thing companies and their shareholders care about, and the bigger the profits the better. No company in a position to establish a manufacturing/or production base overseas will stay in the USA to make a product that may sell at $50, but may cost them $30 in material and labor costs when the same product can be made in China, Thailand, or Mexico $10, materials and labor inclusive. Note the profit margin difference. Unless those other country somehow manage to rise to the level of the USA in terms of their cost of production and labor, think you'll ever see those jobs already gone from these shores return?
There's one over-riding reason sheeple go to Walmart: price. I don't know many people who can afford a 150% premium on that US-made towel. Those jobs are gone an' they ain't comin' back, to your home town...
And I don't see how taxing the US companies that sent the jobs overseas will help - they will pass the price on to the consumer and everyone pays more. If I can barely afford a $5 towel, how am I going to pay for the $15 towel?
Congrats to Elkhart - but please be careful not to give away the farm in tax incentives. That happens here in Chicago all the time.
~Dave
You are absolutely correct, when we lose something we must work twice as hard to get it back. For americans, that translates into a done deal.
Think PATRIOT act, and what we gave up for a little temporary 'safety'. We wont get those back without a serious fight. And for what? so i can stand in line with my shoes off or a christmas day bombing attempt??
Here is what i would do: Don't buy the towel.
Corporations must institute true cost pricing. We get this by not spending dollars at their business. The execs and board will have to give up some of their pay to keep prices low. We must break free of the bailout mentality and let it fail.
One thing I haven't heard mentioned is that people with good paying jobs don't need gov. assistance...food stamps, Medicaid, Aid for Dependant Children etc. Quite the contrary, the pay INTO the system
I am with Ferrosynthesis. Since when is a job created in America all of a sudden a bad thing. We hve lost over 10 million this year alone. Our government took what little tax money there was and squandered it on TARP and it didnt create any jobs. All good capitalists know that government doesnt create jobs, businesses do. Way to go Think. I hope a thousand Think companies set up shop in the USA.
Maybe I'm having a senior moment, but didn't THINK used to be owned by FORD?
Attention everyone! Think isn't hiring everyone tomorrow. We are only talking 100 jobs this year. The 415 employees won't happen for 3 years! Hopefully Elkhart will start making RV's again by then. Anything can happen in 3 years.
I attended the press conference today announcing THINK CITY's arrival. The city, state, and possibly the Fed are all giving incentive (tax breaks or stimulus funds) to help THINK get up and running. In return THINK has committed to purchase 70% of needed components for manufacturing their cars locally. This will have further reaching effects on the local economy than "just" 415 jobs. Indiana is quickly becoming a major manufacturing hub of electric vehicles, and Elkhart county is leading the way with three companies now.....THINK, Navistar, and Electric Motor Company. Another company is building vehicles in Central Indiana and other companies are getting on board to supply these companies. I don't see how tax incentives can be a bad thing to help create this growing economic momentum.
Keep the government out completely. Have not they causes enough destruction to our country. I would think they are quite guilty of treason. They are the root cause of the evil facing this nation now, not "capitalism".
The government did its part to bring about the failure of the 'Big 3,' did they? Which government are you speaking of, or should I say which administration? Do you mean the one in power now, or are you speaking collectively going back forty years?
Oh what happened to the hydrogen cars developed in the 60's?
how about the recent EV-1 which was promptly recalled and smashed?
http://en.wikipedia.org/wiki/General_Motors_EV1
Now watch the UAW march in and screw up the deal. Man, I hope they stay the heck away so the good people of Elkhart can get back to living again. The sad thing is: the profits will be going back to Europe. Meanwhile, American business owners just sit on their cash waiting for the sky to fall (again.) But I'm happy for the folks in Elkhart.
a $43.5 million dollar investment that the company says will create 415 much-needed jobs in the recession-battered area.
Think is to become the third electric vehicle manufacturer in the area. Navistar International Corp. plans to build all-electric delivery trucks starting next year with help from a $39 million federal grant.
Ok, 43.5 million dollars, 39 million in grants. Isn't that more like a 4.5 million dollar investment? Hell 415 jobs paid for by the other 50 states of the union producing something that on its own weight couldn't post a profit in a decade. That's a long term solution. Elkhart, Indiana the first welfare town in the US. (Not really the first, but competing to be the biggest by %)