Ohio To GM: Where’s My Money?

The Lordstown auto plant may no longer be owned by General Motors, but the automaker may be in trouble, according to a new report. the Truth about cars, citing ProPublica, states that the state of Ohio sent GM a letter in March of this year requesting the repayment of more than $ 60 million in subsidies.

Several years ago, the two sides agreed to significant tax breaks in exchange for the builder operating the plant until at least 2027. GM abandoned the Cruze sedan that was assembled there in the spring of 2019, leaving the factory with no real production. GM then sold the site to a company called Lordstown Motors, which promised to build electric trucks.

“If the state were to recover $ 60 million, it would be one of the largest recovery events in US history,” said Greg LeRoy, executive director of Good Jobs First, a non-profit organization. “who monitors subsidies and promotes responsibility in economic development”. “It is very significant, very interesting that it comes from a state of Rust Belt of a very pro-business administration.”

Apparently, a final decision has not yet been made by Ohio officials and the matter will be discussed at a next meeting, which is scheduled to take place in the second half of July. In return, General Motors begs Ohio not to want to get its money back.

“Preserving money is of crucial importance to General Motors in order to support a vigorous exit from the global economic and health crisis,” General Motors replied to the Ohio letter through its director. American property tax, Troy D. Kennedy. “We respectfully ask for your assistance in helping us move toward full recovery by choosing not to require the repayment of all or a significant portion of the tax credits.”

GM spokesperson Dan Flores said ProPublica that the company “respectfully requests the State to take into account our conviction that a refund of tax credits would be incompatible with our significant manufacturing presence in Ohio and in the Mahoning Valley”.

Related Posts