Winner or Looser: Volkswagen Plant Comes to Chattnooga

Running Head : AUTO IND

Automobile Industry in Focus Automobile Industry in Focus

The automotive industry of the US remains the largest in the world with the industry representation of 10 per cent (fDiMagazine , 2004 ) of the 240bn annually (fDiMagazine , 2004 , the industry provides jobs to 6 .6 million people . In US , incentives from the government and the communities play a major role in creation of more jobs in the sector and make the companies more competitive in the global race of the multinational companies to become the market leader . This will

br justify the incentives being provided to the companies in exchange of new jobs and earnings . Also the will frame the pros and cons , the benefits and costs to the society and the point where offering incentives no longer makes sense

Incentives to the Industry and its Effects

As an objective to remain globally competitive and reduce the cost of production , the domestic companies of the US started shifting their business to lower-cost labor regions or invested in technologies that reduced the need for expensive labor in the country . These actions by the companies brought widespread reductions in jobs and earnings within states and municipalities throughout the US . Great efforts were undertaken by business outreach programs and public officials to head off relocations and closures in advance . Therefore in the past several years , the public officials and communities in the automotive dominated states have begun...