FTZs Key to Japanese Automaker Production in U.S.

A splashy and informative new report from the Japan Automobile Manufacturers Association arrived in the NAFTZ office this week. Titled “Creating Economic Growth and Jobs in America,” the report describes the impressive scope of manufacturing activity in the United States by Japanese-brand auto companies. The report notes that two-thirds of the Japanese name-plate cars sold in the United States are made in North America, including 2.4 million vehicles produced in the United States in 2011. And many of those JAMA-member plants are located in U.S. Foreign-Trade Zones. Japanese-owned auto plants operating in FTZs include Honda in Ohio (FTZ no. 46B and 46D); Nissan in Tennessee (FTZ no. 78A) and Mississippi (FTZ no. 158D); Subaru in Indiana (FTZ no. 72H); and Toyota in Kentucky (FTZ no. 29E) and West Virginia (FTZ no. 229A). Like other global automakers who operate in FTZs, such as BMW, Mercedes-Benz, and Hyundai, JAMA members are utilizing the program to save money, boost their competitiveness, and create well-paying jobs in the United States. For an overview of the global auto industry and the FTZ program, see p. 4 of NAFTZ’s 2012 study, “The Impact of Foreign-Trade Zones on the 50 States and Puerto Rico.”

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