16 June 2020

Nah Gah Nah Happen

When GM closed down its Lordstown, Ohio plant, it violated the incentive deal that it cut with the state, and so may have to repay $60,000,000.00 to state and local governments.

This won't happen of course, because holding corporations to the terms of their contracts isn't "Business Friendly," so they will let General Motors skate:
The state of Ohio has put General Motors on notice that it may be forced to repay more than $60 million in public subsidies as a result of the automaker closing its massive assembly plant last year in Lordstown.

The state’s collection effort, initially outlined in a letter to GM in March, has not been previously reported, and the automaker itself has not disclosed the potential liability to shareholders in its corporate filings.

State officials say the Lordstown shuttering, which made national headlines and drew the ire of President Donald Trump, violated the terms of two state economic development agreements that GM signed more than a decade ago, according to documents obtained by The Business Journal and ProPublica through public records requests. In return for tens of millions of dollars in tax breaks, the company had pledged to maintain operations at the Lordstown site until at least 2027.

“If the state were to claw back $60 million, that would be one of the biggest clawback events in U.S. history,” said Greg LeRoy, executive director of Good Jobs First, a national nonprofit that advocates for accountability in economic development. “This is very significant, very interesting that it would come from a Rust Belt state from a very pro-business administration.”
Ohio is not going to claw back even a fraction of the money, because they want to maintain their reputation as a, "Very pro-business administration," and in our race to the bottom political system, this will trump every other consideration.

I expect, at most, a couple of job developments centers, and perhaps the donation of some land for a city park.

GM will never be made to pay their debts.


Post a Comment