General Electric wants to produce new turboprops for larger aircrafts, and trying to reach a new market. But because of the end of the Export-Import bank of United States, ended up by the Congress, General Eletrics, after many warnings, prefer to build its turboprop anywhere...outside of the United States. They are going to improve the current facilities of GE in Brasil and in Winnipeg, Canada, while they look for where they could build their turboprop in Europe. One place quoted was Czech republic, because this country already holds facilities for smaller aircrafts. GE says it is a non-competitive behavior from the Congress to give up EXIM because Pratt&Whitney, one major contestant against GE, have export-import credits from the Canadian government. However, some member of the Congress said this program was more helping "corporate welfare" than Americans as a whole. What do you think of this move, after the previous sell of parts of GE's Transportation in Europe? As well, is the end of EXIM legitimate or not?
Excessive regulations, taxes, union pressures on employee wages and benefits, etc drive companies to move more and more operations overseas.
So you think that the end of the Export-Import bank is more of a "excessive regulation" than anything else? So it was in American's interest to keep it, not only for company welfare but to keep industries at home and not elsewhere? I don't know enough the Export-Import bank to talk about it in a relevant way. But I sometimes think that the tax avoidance is an abused reason for cutting cost. Some companies are trying to force some laws to pass for their interests and meanwhile I'm really unhappy when businesses goes overseas, I'm not sure it is for the US interest to listen always what companies want.
We're in the same situation here in the UK and although the government as tried to introduce incentives for new and existing companies to stay in the UK, a lot are still deciding to move their operations to cheaper countries and continents.
I think there are other reasons companies move things overseas and sell off certain assets - we have the highest corp tax rate in the civilized world, we have things like Dodd Frank and the ACA, very powerful unions, an EPA that overreaches, etc, etc.
We are having the same problem up here in Canada JR. Even though they are moving some operations to Canada, many of our operations are moving to the US or even to Mexico or other places. It's actually interesting to watch some places move production from Canada to the USA and other move from USA to Canada. Just shows you there is often a lot at play for these decioins, not just macro factors. But anyways, tonnes of our manufacturing up and moved because of unions. How can a company make money when it's employees make highly inflated wages and do lousy work because their is zero incentive to do good work. In fact in union environments hard work is discouraged, it makes the slobs look bad. I remember I worked at a food processing plant when I was a teenager. I was given a task that should take 4 hours. I did it in one hour, and got told if I wanted to keep my job then a 4 hour task cannot be done in less then 4 hours. What kind of non-sense is that? These are how these unions operate, I don't blame some operations for moving oversees when faced with this crap.
There is a large GE plant in Erie, PA my hometown. They have threatened for years to take the whole plant to Mexico. It would be very sad, as it is the last surviving large industry, in what was an industrial town. I think they have moved part of their operation there but they still keep a presence in PA and I hope they always will.
