GM gets tax breaks from Flint for new Volt engine plant
As we stated a few months ago, automakers always get tax credits from cities in an effort to get them to build new plants or retool existing plants. As we know, the upcoming Chevy Volt is likely to be assembled in the Detroit-Hamtramck assembly plant where the Buick Lucerne and Cadillac DTS are currently built. As you may expect, those two models might not last too much longer, so the Volt is very important to the Detroit factory. The engine for the Volt, though, is expected to be built in a new facility which will be located near the existing Flint Engine South and Flint Truck plants, also in Michigan. Fortunately for the city, some three-hundred jobs will be saved. That engine will be a 1.4-liter four cylinder and should also make an appearance under the hood of the next Chevy compact, the Cruze, in turbocharged form. The total sum which GM will invest is $359 million and the plant will cover some 530,000 square-feet.
[Source: The Detroit News]
Reader Comments (Page 1 of 1)
Tim 7:52PM (8/27/2008)
Tax breaks... GOOD! We're over taxed as it is.
Tax money... BAD! No taxpayer funds should go private industry unless the gov't is BUYING goods or services for public use. To give taxpayer money directly to a for profit company is considered pandering and/or buying campaign contributions using taxpayer money.
These corrupt politicians often "rewarded" with jobs as high-paid lobbiests for the very firms they gave PUBLIC money to. Can you say 'conflict of interest"?
Such activity should be rewarded with impeachment followed by a long prison term because it short-circuits the benefits of free market competition by giving ONE company or technology an advantage. This is one reason why we're in the current mess.
To be fair, EQUAL tax breaks should also be given to ALL competitors within that Standard Industry Code and same geographic region on a state by state basis.
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why not the LS2LS7? 8:10PM (8/27/2008)
Life isn't fair. boo-hoo.
Jankdc 12:08AM (8/28/2008)
I am tired of corporate socialism.
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Paul Sallmen 5:03AM (8/28/2008)
I agree. GM is the master of corporate welfare. Doesn't seem to help them though - still losing billions. Frankly, I see no need for taxpayers kowtowing to their demands. Just offer low corporate tax rates to all companies and let the market figure it out. It's very romantic to help GM because they've been around for 100 years, but we're not doing them any favours by bailing them out. That's the job of their CEO, NOT taxpayers! Besides, places like Detroit (Michigan, USA), Windsor and Oshawa (Ontario, Canada) need to diversify their economies anyway.
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alex 7:32AM (8/28/2008)
you guys are idiots. the michigan economy is so bad right now that they are giving tax breaks to anyone who will set up shop in the state. this isn't some favoritism towards GM, it's a state that is losing thousands of jobs trying to make itself more competitive
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Justin 9:20AM (8/28/2008)
Flint is glad to have any industry after the closure of Buick City. Before some of you make stupid comments, go to Flint take a look around and realize that any business is good for Flint.
KDM 9:20AM (8/28/2008)
It’s about time you can’t keep giving foreign companies tax free tax break and expect domestic companies to foot the tax bill…
Toyota officials said the Japanese car maker received an incentive package from Mississippi worth $296 million…
Toyota qualified for more than $400 million in state and local tax breaks in Chattanooga, according to calculations. While Mr. Kisber declined to cite a number, he nodded when asked if state and local incentives were upward of that amount…..
If you keep giving the country away to foreign investors you will be left with nothing…
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UH2L 10:39AM (8/28/2008)
As KDM said, the Japanese get tons of tax incentives from states. For our governments to support foreign companies this way is much worse than doing it for domestic companies. But if the idea is to bring jobs and more money into the economy, then it probably means less expense than handing out welfare and losing tax revenue from local businesses that close down. And when's the last time a Japanese or German company gave and American company a tax break to build a new facility? Perhaps it has happened, but I haven't heard of it.
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Ben 12:43PM (8/29/2008)
Hmmm... GM spent a good wad of tax support a while back and developed the EV-1, needing help to meet potential government mandates, the month CARB eased requirements they canned the program, shut down the Lansing and Flint, Michigan program and proceeded to make all the billions of dollars of profit they could from SUV's. Now with the threat from vehicles with much higher mileage and pure electric vehicles they want financial Help!? Hmmm, how about reducing their CEO's staggering salaries first and making their employee benefits more cooperative - not to mention eliminating the bottom 20% of their worst fuel fuel efficient vehicles before they get one dime more of government subsidies? Probably not possible or kind - but a thought.
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