Ohio has ordered General Motors to repay $ 28 million in tax credits after failing to comply with the terms of the 30-year agreement, closing its Lordstown plant after 10 years.
GM has also been ordered to invest an additional $ 12 million in community development in the state, which has long struggled to regain its former manufacturing blackmail.
In 2008, when gas prices soared, GM received more than $ 60 million in tax credits for agreeing to keep 3,700 employees at the plant by 2028 under the retention tax credit program and for agreeing to create 200 new ones. jobs under the tax credit program to create jobs if it continues to work until 2037 to develop the economical Chevy Cruze.
“The company has not kept its commitment to keep jobs,”
If Ohio had ordered the repayment of all $ 60.3 million in tax credits, it would have been one of the largest tax credits in US history.
Presidential candidate Donald Trump traveled to the region in 2016 and told protesters, “Don’t move, don’t sell your house,” because jobs that have left Ohio are “all coming back” if elected.
But in 2018, the company announced amid declining sales that it would discontinue Cruze production at the Lordstown plant and discontinue operations, along with those of four other plants in North America.
This year, construction of a joint venture battery plant began on the site of the former facility, with the promise of creating 1,100 new jobs. And a new company called Lordstown Motors, working on a financing deal with GM, has begun producing an electric pickup truck called Endurance, also in the former territory.
Trump traveled to Cleveland on Tuesday to take part in the first presidential debate. He posed Monday with the endurance of the White House’s southern clearing and misleadingly admitted that he had helped bring in the new factories.
“This is a lie. I’m amazed that people would even believe anything [Trump] says at this point, “said Dave Green, the former head of the local car workers’ union, by phone.
“He came into our community and told everyone what they wanted to hear, and did nothing,” Green said. “Now he attributes something to himself that he put squash on all the time.”
Sen. Sherod Brown of Ohio told reporters that he had introduced the new business and that Trump had not moved a finger.
“We asked Trump to help. He didn’t do anything,” Brown told reporters afterwards, Cleveland.com reported. “While we welcome Lordstown Motors and the battery plant, it’s nowhere near what it should be, and nothing close to what it would be if the president stepped up three and four years ago.”
Brown said other officials’ claims that the new plants would effectively replace jobs lost when the plant closed do not take into account all the jobs lost in the local supply chain that previously served the plant.
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 Mahoneing Valley.”
But he said keeping the electric battery plant was “good news for the future of the car industry.”
Attorney General Dave Yost praised the news, saying it was good “to hear that GM will pay the financial incentives offered to it.”
“I thank Governor DeWine and his team for staying on top of these business relationships and holding them accountable,” he said.
GM did not respond to a request for comment.
Christian Pena contributed.