Subaru Says Reluctant to Further Invest in US Because of Pay Competition from McDonald’s
Subaru Says Reluctant to Further Invest in US Because of Pay Competition from McDonald’s

By Naveen Athrappully

Japanese automotive firm Subaru is reluctant to invest in manufacturing electric vehicles in the United States due to the high wage inflation, CEO Tomomi Nakamura said on Wednesday.

“In Indiana, part-time workers at McDonald’s earn $20 to $25 per hour, which is in competition with what temporary workers make at our plant,” Nakamura said while speaking at the company’s quarterly earnings announcement on Nov. 2, according to Automotive News.

“If we were to build a new plant, it would be very difficult to hire new people for that. Labor costs are rising now. It is quite challenging for us to secure workers for our Indiana plant, including those of suppliers,” the Subaru CEO said.

The company owns an automobile assembly plant in Indiana called the Subaru Indiana Automotive (SIA, which manufactures half of all Subaru vehicles sold in North America. The facility was founded in 1987, and employed 5,900 employees as of 2020.

The Inflation Reduction Act has a provision wherein electric car manufacturers can receive federal tax credits of $7,500 per vehicle, provided that specific conditions are met, including processing or extracting a certain percentage of critical battery materials within the United States or a country with which the United States has a free trade agreement.

Nakamura revealed that the company plans to stick with assembling electric vehicles at a facility that will be built in Japan. Complying with U.S. guidelines to qualify for the $7,500 tax credit would be tough at present, he added. Subaru is studying how the firm can qualify for tax credits in the United States.

Wage Growth and Inflation, Minimum Wage

Though the Subaru CEO considers U.S. wages to be relatively high, the fact is that workers’ earnings have not kept up with inflation.

An October report by the Federal Reserve Bank of Dallas calculated that 53.4 percent of American workers saw real wages—referring to inflation-adjusted wages—decline between second quarter 2021 and second quarter 2022.

For 53.4 percent of workers, the median decline in real wage growth was found to be 8.6 percent. The only other periods during the past 25 years when the real wage decline was more severe than in second quarter 2022 were those in 2008 and 2015.

Meanwhile, the Biden administration has been pushing to hike the minimum wage across the country to $15 per hour. However, the government has not been successful in raising the minimum wage, which was last revised in 2009, and at present is $7.28 per hour.

A 2020 study warned that raising the federal minimum wage to $15 per hour can potentially lead to the loss of around two million jobs in the United States.

“The arts, entertainment, and recreation, and accommodation and food services sectors will account for half of these job losses. Workers aged 16–24 will see the highest proportion of job losses, and the majority of jobs lost will be those held by women,” the study said.

Affiliate News Feeds

  • Reuters
  • Washington Examiner
  • The Federalist
  • The Epoch Times
  • The Guardian
  • The Gateway Pundit
  • Judicial Watch

By Naveen Athrappully NASA announced on Tuesday that it intends to cancel the development of its GeoCarb mission, which was proposed to be a low-cost satellite aimed at monitoring greenhouse gas… [...]

By Bryan Jung The rate of job cuts in the United States soared 127 percent in November, amid a wave of layoffs in the tech industry. The American employers announced 76,835 cuts… [...]

By Jennifer Margulis and Joe Wang What medicine should you take? How should you treat any given illness? What preventative measures are most effective for you? Which vaccines do you need? These… [...]

A former professor at the University of California San Diego said she gave all of her students "A" grades and no homework in a recently unearthed video. [...]

A key Senate vote over whether to provide paid sick leave for rail workers is highlighting a divide within the GOP, a party that has increasingly tried to position itself… [...]

Transmission infrastructure will need to double or triple to accommodate the growth. [...]

Anyone still wearing a face mask to protect himself from Covid probably has no intention of ever shedding it now. [...]

Anyone who actually watched 'Wednesday' can see that the 'racism' accusations are ridiculous and performative. [...]

Chuck DeVore's historical fiction book 'Crisis of the House Never United: A Novel of Early America' demonstrates not only why procedure and patience matter, but also the genius of the… [...]

The head of the largest oil and natural gas trade association warned that failure to replenish the U.S. Strategic Petroleum Reserve (SPR) could trigger another oil crisis in the coming… [...]

This episode will premiere on Friday, Dec. 2 at 8 p.m. ET. In this episode of Kash’s Corner, we discuss the impending release of the Jan. 6 committee’s final report.… [...]

New York’s quest to replace the troubled Rikers Island jail complex with smaller facilities across the five boroughs could lead to either hazardous overcrowding or the release of dangerous detainees,… [...]

Health Security Agency issues rare alert over rise in cases, urging people to seek immediate medical help if they see symptomsQ&A: what are the symptoms and how can strep A… [...]

Exclusive: Labour says ministers have been told repeatedly that people with prepayment meters are not getting enough supportCase studies: ‘I can’t afford to heat my son’s room’Up to half a… [...]

Group G match at Stadium 974 kicks off at 7pm GMTCameroon v Brazil – follow live with Scott MurrayShare your thoughts with Will via email or on TwitterThe national anthems… [...]

Joe Biden’s gender fluid “pup handler” DOE employee Sam Brinton was charged with felony theft for stealing a woman’s luggage last month at MSP airport in Minnesota. According to Alpha… [...]

By Wayne Allyn Root Let me start with a disclaimer. I’m a Jew. Not just any Jew. Ancestery.com tested my DNA and reported I’m 99.9% Eastern European Jewish ancestry. That’s… [...]

The Department of Homeland Security has issued a National Terrorism Advisory System Bulletin in advance of the holidays. The United States remains in a heightened threat environment. Lone offenders and… [...]

From Fox News: The Secret Service will not say why they changed their position regarding a government watchdog’s records request into Hunter Biden’s gun investigation records. Government watchdog Judicial Watch… [...]

(Washington, DC) – Judicial Watch announced today that the United States Secret Service has repeatedly changed its position about whether it is in possession of records related to the investigation… [...]

The Biden administration is giving a nonprofit partially funded by leftwing billionaire George Soros’s Open Society Foundations (OSF) $12 million to strengthen labor rights and empower workers in three Latin… [...]

USNN2020

USNN World News (USNN) USNN World News Corporation is a media company consisting of a series of sites specializing in the collection, publication and distribution of public opinion information, local,...