Executive Summary

Automobile plants have been closing at an alarming rate across the United States. This affects government entities at the local, state and federal level with loss of property and income taxes.  Private business and governments can create partnerships to capitalize on repurposing these plants while creating jobs – this action would benefit many from unemployed workers, the abandoned buildings and towns, to failing government budgets.  Revitalized plants could create property and income taxes from the new business and employees.   

Discussion

A business closing affects the whole community: unemployment rates increase, town populations may decrease as people move to find work, businesses suffer with less patrons and schools may lose pupils.  Government entities lose both property and income taxes.  Depleted businesses can also affect the aesthetics of the community. 

In a recent study by the Center for Automotive Research showed that “since 1979, 447 automaker and automaker-captive plants have been in operation across the country.  Nearly 60 percent – 267 total – have closed and only 180 remain in operation at present” (Bridgeman, et. al.).   Looking specifically at the closed plants, “48% (128) have been at least partially repurposed or are in the process of transitioning to a new purpose” (Business Journal).  This leaves significant room – or specifically 139 plants - for the United State Congress, and state or local governments to respond.   

Recent examples of repurposing closed automobile plants include the following examples:

G.M. converting the closed assembly plant in Spring Hill, Tennessee to produce Chevrolet Equinox vehicles (“Ex-Saturn Plant to Reopen”).

A new company, V-Vehicle, planning to manufacture environmentally friendly cars at the former Guide Corporation (headlight manufacture) Monroe, Louisiana plant (Fox News).

The Ford transmission plant in Batavia, Ohio now houses three tenants - the University of Cincinnati and also two manufacturing companies – collectively employing 150 workers (“Developers Revive Closed Auto Plants”). 

Government entities should provide incentives to companies wanting to repurpose the vacant plants. Revitalizing the plants will produce jobs, bring families to the community, spur business and grow schools. Local, state and federal government entities will see increased bottom lines with the collection of more property and income taxes. 

Sources:

Brugeman, Valerie Sathe; Hill, Kim; and Cregger, Joshua.  (November 2011).  Center for Automotive Research “Repurposing Former Automotive Manufacturing Sites: A report on closed auto manufacturing facilities in the United States, and what communities have done to repurpose the sites.” Accessed online Dec. 9, 2011 at http://www.cargroup.org/pdfs/repurpose.pdf.

Bunkley, Nick.  (Dec. 7, 2011).  “Developers Revive Closed Auto Plants.” New York Times.  Accessed online Dec. 9, 2011 at http://www.nytimes.com/2011/12/08/business/developers-revive-closed-auto-plants.html.

Bunkley, Nick.  (Nov. 21, 2011) “Ex-Saturn Plant to Reopen, And G.M. to Add 700 Jobs.”  New York Times.   Accessed online Dec. 9, 2011 at http://www.nytimes.com/2011/11/22/business/saturn-plant-to-reopen-with-700-jobs.html.

Business Journal Daily.  (Dec. 9, 2011)  “Williams Joins Automotive Research Center to Release Study on Repurposing Plants.  Access online Dec. 9, 2011 at http://business-journal.com/williams-joins-automotive-research-center-to-release-study-on-repurposing-p-p20568-1.htm.

 Fox News.  (June 18, 2009) “’All-American Car’ Company to Build Factory in Louisiana.  Accessed online Dec. 9, 2011 at http://www.foxnews.com/story/0,2933,526992,00.html.