Ohio is ordering General Motors to repay $ 28 million in tax deductions after failing to meet the terms of the 30-year deal by closing its Lordstown facility after 10 years.
GM has also been ordered to invest an additional $ 12 million for community development in the state, which has long struggled to regain its former production sponge.
In 2008, when gas prices rose sharply, GM received more than $ 60 million in tax deductions for agreeing to keep 3,700 employees at the factory through 2028 under the Job Retention Tax Credit Program and for agreeing to create 200 new jobs under Job Creation The Tax Credit program. if it maintained operations through 2037 to develop the fuel-efficient Chevy Cruze.
“The company did not uphold its commitment to maintain the job,”
If Ohio had ordered the repayment of all $ 60.3 million tax deductions, it would have been one of the largest tax credit repayments in U.S. history.
Presidential candidate Donald Trump traveled to the region in 2016, telling rally guests: “Do not move, do not sell your house,” because the jobs that had left Ohio, “all came back,” if elected.
But in 2018, amid declining sales, the company announced it would stop production of the Cruze at the Lordstown plant and close operations with those from four other North American factories.
Construction of a GM joint-venture battery cell plant began this year on the site of the former plant with the promise of creating 1,100 new jobs. And a new company called Lordstown Motors, which was working on a financing deal with GM, began producing an electric pickup truck called Endurance, also on earlier grounds.
Trump travels to Cleveland on Tuesday to appear in the first presidential debate. He put the endurance on the White House lawn on Monday and took the misleading credit for helping bring the new factories in.
“It’s a lie. I’m surprised people even want to believe something [Trump] says at this point, “said Dave Green, the former head of the local autoworkers union, by telephone.
“He came into our community and told everyone what they wanted to hear and did not do a damn thing,” Green said. “Now he takes credit for something he put the squash on all the time.”
Senator Sherrod Brown, D-Ohio, told reporters that he had brought in the new business and that Trump had not lifted “a finger.”
“We asked Trump to help. He did nothing,” Brown said in a call to reporters afterwards, Cleveland.com reported. “While we welcome Lordstown Motors and the battery system, it’s nowhere near what it should be, and nothing close to what it would have been if the president stepped down three and four years ago.”
Brown said claims by other representatives that the new plants would effectively replace the jobs lost by closing the plant do not take into account all the jobs lost in the local supply chain that previously operated the factory.
Ohio Gov. Mike DeWine said GM had a long history as an employer in the state and that the decision to close the plant was “terrible news for workers and their families in the Mahoning Valley.”
But he said maintaining an electric battery system was “good news for the future of the automotive industry.”
State Attorney Dave Yost praised the news, saying it was good “to hear that GM will repay the financial incentives it was offered.”
“Thank you to Governor DeWine and his team for staying on top of this business relationship and holding them accountable,” he said.
GM did not respond to a request for comment.
Christian Pena the contribution.