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Where Is Bill Oreilly When You Really Need Him?.GM Gets Billions In Taxpayer Bailouts and Still Gets Millions More In Tax Breaks From A Broke State In Order To ‘Save 1,200′ Jobs. Its Better Politics than Economics.

Posted By Centrist on June 26, 2009

The Centrist read this story about GM ’selecting’ an existing plant site in Orion Twp, MI to build a news small car. This will preserve about 1,200 jobs.

 It has been widely reported in the news that the Gov of Tennesse didnt want any part of a selection process in which GM was reportedly asking for $200m in up front cash as part of the site selection process. (story here)

General Motors may make a decision by month’s end on which of three idled plants will build a new small car for the automaker, but Gov. Phil Bredesen said it will take $200 million or more for Spring Hill’s factory to stay in the game — and Tennessee doesn’t have that kind of cash.

This is for them all about front-end money," Bredesen said Thursday, a day after meeting privately with GM officials in Washington along with Tennessee congressional leaders. GM also has met with a congressional delegation from Michigan, and the Detroit Free Press reported that several of that state’s lawmakers said they’d consider providing incentives to win GM’s small car project.

"They don’t care about tax credits and those other kinds of things," Bredesen said at an impromptu news conference. "It certainly was a new look for me at how they’re approaching this thing, which is absolutely, ‘Tell me how big of a check you’re going to write.’ "


The state of Michigan offered incentives to GM but will not disclose the what the package is.

But the GM deal would come at a steep price as state and local officials have dangled millions in tax breaks to win the work.

Liz Boyd, a spokeswoman for Gov. Jennifer Granholm, would not confirm GM’s selection of the Orion plant and has declined to describe the economic incentives the state offered GM.

The Centrist and millions of taxpaying Americans who are the ‘owners’ of the New GM WANT TO KNOW THE TAXPAYER INCENTIVES that were provided to a government owned company. Its a real simple question of transparency of taxpayer dollars. So will somebody at the New GM or the auto task force answer the question ‘What Was Incentive Package for A Company Already Receiving Billions from the taxpayers’.

Michigan leads the nation in unemployment so preserving 1,200 union jobs is laudable. Not providing transparency to taxpayers who are footing the bill for a taxpayer owned company is laughable. Somebody please provide some answers as to where our money is going.


The Centrist


Via Detnews.com

June 27, 2009

General Motors Corp. chose its Orion Township plant over factories in Tennessee and Wisconsin to build a new small car, preserving about 1,200 jobs, sources familiar with the situation said Thursday.

The plan must be approved by GM’s board of directors, which could happen as early as today.

The production of the new car will save jobs that otherwise might have been lost to layoffs in a state hard hit by manufacturing cuts. As part of the project, GM is likely to retool its stamping plant in Pontiac to make parts for the new car that will be based on the Chevrolet Spark, saving several hundred more jobs.

GM spokesman Tom Pyden said GM was nearing an announcement and it could come as early as today, but the automaker has yet to talk to officials from the three states that were considered.

The Orion Township plant employs about 3,400 hourly and salaried workers, who make the Pontiac G6 and Chevrolet Malibu.

But with GM’s decision to phase out the Pontiac brand by next year, the plant will have the capacity to produce another vehicle.

The new production would be a coup for Orion Township and Michigan, helping to offset job losses at seven factories in the state that GM intends to close in coming months as it restructures. It would also mean Michigan has snagged two major development projects.

General Electric Co. is expected to announce today plans to build a training and development facility in Van Buren Township that will employ as many as 1,200 workers.

GM’s selection of a small car production site has been the subject of intense lobbying from elected officials in Michigan, Tennessee and Wisconsin. GM officials met with congressional delegations in each state this month.

"General Motors selecting Michigan for the site for production of a new small vehicle would be phenomenal news for Michigan workers and for the state," said U.S. Sen. Carl Levin, D-Detroit.

"A whole lot of us have worked 24/7 in recent weeks to push for this result."

But the GM deal would come at a steep price as state and local officials have dangled millions in tax breaks to win the work.

Liz Boyd, a spokeswoman for Gov. Jennifer Granholm, would not confirm GM’s selection of the Orion plant and has declined to describe the economic incentives the state offered GM.

"The governor has said from Day One we are going to be aggressive going after this project and the jobs it will create," she said.

"We are hopeful they will choose Michigan."

Orion Township officials recently sweetened an offer to GM that includes a 100 percent tax break on new machinery and equipment for up to 25 years — more than double what was offered earlier this month, township Supervisor Matthew Gibb told The Detroit News.

GM could end up saving as much as $100 million in taxes, depending on the type of equipment installed in the plant and the type of production.

"We’d be overjoyed" by an announcement, Gibb said. "It would prove that when a community looks at the importance of the people and ancillary benefits of the plant and is willing to sacrifice some tax revenue, that progress can be made. We went to the mat."

The township also has offered a 50 percent tax break if GM expands the plant, which was scheduled to be shut down later this year as part of the bankrupt automaker’s broad restructuring plan.

Orion Township, 39 miles north of Detroit, is willing to forgive millions in future tax revenue in hopes of preserving the $2.7 million GM pays annually in local taxes.

GM has said its production goal is 160,000 vehicles annually.

"(The) news is a credit to Michigan’s workers and management," said U.S. Rep. Mike Rogers, R-Brighton.

"Their record of quality and accomplishment won them this opportunity."

On June 1, the same day GM filed Chapter 11 bankruptcy, the automaker unveiled a list of 14 plants that will be closed in coming months as part of its court-ordered restructuring. Michigan stood to lose an estimated 8,900 jobs at GM facilities slated to close.

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