Foreign Companies in US 6-7-25

Foreign auto manufacturing companies can own land and buildings in the United States. However, there are some limitations and regulations, particularly related to agricultural land. While not all states have absolute prohibitions, many restrict foreign ownership of agricultural land. Foreign entities are also subject to disclosure requirements under the Agricultural Foreign Investment Disclosure Act (AFIDA) when acquiring or holding interests in agricultural land.  

Here's a more detailed look:

General Ownership: Foreign manufacturers can generally own land and buildings in the US for their business operations, such as manufacturing plants and offices. 

Agricultural Land Restrictions: Approximately 26 states have restrictions on foreign ownership of agricultural land, either prohibiting it outright or limiting it. 

Disclosure Requirements: The AFIDA requires foreign entities to disclose to the USDA when they acquire or hold interests in agricultural land. 

State-Level Regulations: Some states have enacted laws restricting foreign ownership of land, including both agricultural and other types of real property. 

Examples: Several European automakers, including Volkswagen, BMW, and Mercedes, own and operate manufacturing facilities in US states like South Carolina, Alabama, and Tennessee. 

https://www.google.com/search?q=can+foreign+auto+manufacturing+companys+own+their+own+land+and+buildings+in+the+us

Comments

The low 15% US tax and 100% Depreciation on equipment for “US Approved” Foreign Auto Manufacturers gives them the incentive to relocate Auto Plants in the US. This would include Auto Plants headquartered in Japan and South Korea and other “US Friendly” nations. This makes sense for countries with high US market shares like Toyota, Honda and Nissan in Japan and Hyundai and KIA in South Korea. Relocating Plants to the US shortens the supply chain to the Dealers and encourages more auto parts manufacturing to occur near their US-based plants.

The US Market share for Japan is Toyota at 15%, Honda at 8.8% and Nissan at 5.8%. The US Market share for South Koreas is Hyundai at 11% and KIA at 5%.

Comments

In the 1980s, Japanese companies bought large high-rise office buildings in the US. The appreciation of the value of these buildings stopped and retreated. The Japanese sold these building back to US companies at a discount. In the 1990s, the price of single family homes retreated and later resumed the rise in prices.

Norb Leahy, Dunwoody GA Tea Party Leader