Airbus, the primary rival of Boeing (NYSE: BA), will open a plant in Alabama. It may have made the decision to counter American politicians’ belief that Airbus works in the interests of its European owners. In part, that means keeping manufacturing jobs in Europe. Members of Congress have attacked the company because, while Boeing employees tens of thousands of people in the United States, Airbus has nearly none.
There may be another explanation. Like Japanese car companies, Airbus may have discovered it is economical to make some parts of its planes in the U.S. Labor is usually cheap in the deep South. States are willing to provide rich subsidies, often in the form of tax breaks. Airbus might not care about perceptions at all. It may just want to increase its profits.
Douglas A. McIntyre
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
