Twenty years ago, if you'd told me this was going to happen, I would have laughed out loud. This is a ribbon-cutting ceremony that took place in Georgia yesterday. It's the beginning of a Kia assembly plant.
It's an upside-down auto world in which we're living these days. Ford, GM and Chrysler are cutting back shifts and closing plants in North America, and at the same time, they're opening facilities in China, in Thailand, in India, in Korea, in Romania, and in yesterday's news, in Uzbekistan (I'll admit, I had to look that one up on a map).
And while the domestics are moving overseas, here at home we've got Toyota and Honda expanding in Ontario, Hyundai in Alabama, BMW in North Carolina, Nissan in Tennessee, and Mitsubishi in the improbably-named town of Normal, Illinois.
You really have to sit back and wonder where everything's going, and where it's going to end. It's obvious that labor costs are playing a part in this, although I'd imagine even the poorer workers in the South (because no one's building these plants in rich cities) are making more than workers at plants in Thailand and India, which tells me tariffs are part of this too. And I would expect that eventually these plants will start to outsource some of their production materials, just as the Big Three have done. The domestic auto plant in the city where I live used to build its cars almost from scratch. Now many components are coming in already built up, from independent companies that make the parts for the price the automaker's willing to pay.
And while we all want a car that doesn't cost much, there's a flip side to all of this. Maybe unionized auto workers do make too much. But at the same time, many of them pay as much in taxes as someone greeting customers at the local big-box store takes home in a year. When it comes to the quality of municipal services, I'd rather have a tax base of overpaid auto workers than a tax base made up solely of "would you like fries with that?". Think about who pays for your police, fire, schools, health care and social programs next time you complain about wages.
These days, I don't know what to think. Every new ground-breaking ceremony gives me hope, and every idled plant and reduced shift makes me worry. I'm guessing that a few decades ago, the people who made television sets in Canada and the U.S. wondered what was going to happen to their industry. I don't think I have to tell you how that went.