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Foxconn to use Kenosha AMC site? (Fixed)

by David Zatz on

Asian manufacturer Foxconn, best known for their production of Apple goods, may build a new plant in the United States to make flat-panel displays. Reuters claimed that President Trump is to make a joint statement with Foxconn, boasting of “billions of dollars in investments.”

Foxconn claimed it would invest $10 billion, creating 3,000 jobs, to make computer and TV screens. [Note: the Trump administration says it may create up to 13,000 jobs. The official announcement did indeed list just 3,000]

According to the White House, Trump himself chose the site in Kenosha. Originally a Jeffery plant, it built Nash and AMC cars as well before Chrysler purchased AMC and switched the plant to engine production. It closed in 2010.

Reuters seemed skeptical, noting that Foxconn has made other announcements in the past that did not come to anything, and that there may be resistance to a government subsidy of up to $3 billion. That subsidy means that taxpayers will pay $1 million per job — or $66,667 per year for 15 years, likely more than Foxconn’s cost for labor.

(Corrected) One of Apple’s suppliers, not Foxconn, started making Mac Pros in the United States in 2013; Apple CEO Tim Cook has spoken numerous times about “in-shoring” production by its offshore suppliers. Apple started approaching its largest suppliers, Foxconn and Pegatron, about moving production to the United States in mid-to-late 2016. Though this would normally not be relevant, numerous stories on the Kenosha deal also noted Apple’s plans (and some implied that the new plant would make parts for Apple).

David Zatz founded Allpar in 1998 (based on a site he had begun in 1993-94), after years of writing reviews for retail trades. He has been quoted by the New York Times, the Daily Telegraph, the Detroit News, and USA Today. Before making Allpar a full-time career, he was a consultant in organizational psychology. You can reach him by using our contact form (much preferred) or by calling (313) 766-2304


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