Comments on: Volt Birth Watch 53: GM Wants More Tax Breaks

By: menno

menno — Tue, 03 Jun 2008 16:31:25 +0000

All GM needs to do is build a new factory in one of the Michigan tax-break enterprise zones, and they can automatically get tax relief. Surely for such an advanced and unconventional car as the proposed Volt, a new plant is not outside the realm of possibility?

I don’t think there are any restrictions on these zones, either. Bring the jobs in, get the tax relief.

I had a list at one point. I think Jackson Michigan has a zone. That’s close to Ann Arbor, GM’s big transmission plant in Ypsilanti (which could tool up for electric drivetrain parts?) and would be close enough to bring in some of the laid off workers.

So, why is GM any different than Hyundai getting money out of Alabama, or Kia getting money out of Georgia, or Mercedes, or BMW, or Toyota or Honda or Nissan getting money out of the states they built plants in?

It seems to be the way the game is played. Not that I personally LIKE corporate welfare with our tax dollars….

By: Captain Tungsten (of GM)

Captain Tungsten (of GM) — Tue, 03 Jun 2008 15:19:17 +0000

They are just playing by the rules of the game. Every OEM, US, Europe or Asian, extracts tax breaks and other concessions in exchange for locating their plants. All of them. Standard business practice these days.

By: Wulv

Wulv — Tue, 03 Jun 2008 14:59:37 +0000

Hey it worked for Ontario right? The government gave them what was it $225 million to stay and look how well that turned out, o… wait a sec…

By: Alex Rodriguez

Alex Rodriguez — Tue, 03 Jun 2008 14:53:53 +0000

Frank Williams :
June 3rd, 2008 at 10:12 am

GM already has manufacturing facilities there. Basically, they’re saying “if you want to keep these jobs here, pay us.”

This too is very shocking. I have never in my life heard of a corporation doing this. I thought this was America???

By: John Horner

John Horner — Tue, 03 Jun 2008 14:37:42 +0000

How a money loosing company like GM justifies borrowing money to pay dividends is beyond me. I’m a part owner in a small corporation, and we only pay ourselves dividends when there are profits in excess of what the business can put to good use.

By: driving course

driving course — Tue, 03 Jun 2008 14:29:35 +0000

Odds on GM will get them.

By: detroit1701

detroit1701 — Tue, 03 Jun 2008 14:29:01 +0000

The Prius had for some years the benefit of a massive tax credit (on federal taxes, no less). Believe me, Michigan would be more than happy to pay some extra $$ to capture the Volt production. If the drivetrain is a success, that can only mean good things for the state.

By: mel23

mel23 — Tue, 03 Jun 2008 14:27:18 +0000

Kill the dividend than we’ll talk.

By: GS650G

GS650G — Tue, 03 Jun 2008 14:17:30 +0000

Get Jeff Daniels on the phone, have him remind GM that “it’s Michigan, where you have the upper hand.”

By: Frank Williams

Frank Williams — Tue, 03 Jun 2008 14:12:11 +0000

Alex Rodriguez A U.S. Corporation looking for tax breaks from the state where it wants to locate manufacturing facilities?

GM already has manufacturing facilities there. Basically, they're saying "if you want to keep these jobs here, pay us."

By: psarhjinian

psarhjinian — Tue, 03 Jun 2008 13:31:17 +0000

I agree. This is pretty much par for the course, though usually it’s the government shamelessly slobbering over the company and not the reverse.

By: Alex Rodriguez

Alex Rodriguez — Tue, 03 Jun 2008 13:25:33 +0000

A U.S. Corporation looking for tax breaks from the state where it wants to locate manufacturing facilities?

What is this world coming to? The end is near, I tell you.