A World Class Industry: Honda in Alabama and the Rise of the Foreign-Owned Auto Sector

Abstract

This article provides the first in-depth historical case study of Honda’s assembly plant in Lincoln, Alabama. Established in 1999, the plant became one of the biggest auto factories in the US, employing over 4,500 workers. Drawing on a wide range of sources, including rare interviews with top company and state officials, it argues that the establishment of the plant did not just reflect financial subsidies, the prevailing view in the press (and limited academic literature). Other factors were crucial, including site location, the availability of a willing and qualified workforce, and union avoidance. The personal intervention of state leaders, especially Governor Don Siegelman, is also uncovered here. In a broader context, the article illuminates the globalization of the car industry. In 2018 foreign-owned companies accounted for half of US auto production, and Alabama was a leading producer. Despite this, the burgeoning sector has been overlooked by scholars compared to domestically-owned carmakers. Honda in Alabama has been particularly neglected, yet its story is significant and distinctive. A highly successful plant, Honda Manufacturing of Alabama had one of the highest levels of domestic content in the country, along with more American managers than Honda’s better-known factory in Marysville, Ohio, and a more diverse work force.