By on June 3, 2008

wagoner.jpgNot only does GM want the U.S. taxpayer and the Chinese government to subsidize development and sale of the Volt, now they're reaching into Michigan taxpayers' pockets to subsidize the production. GM insists they want to produce their electric-gas wundercar in Detroit to show how much they support the city and state– but only if the city and state support them by giving them tax breaks. The Detroit News reports GM met with the Detroit City Council yesterday to discuss their plans for the Volt. But no one will say just what kind of extortion "tax incentives" they demanded are seeking. With the magical year 2010 just a short time away, it seems to me they need to stop their fund-raising activities and get on with aligning their webbed-footed waterfowl. That is, if they really do plan on getting the Volt to the market in 2010. Otherwise, they can just keep on playing "poor poor pitiful me" and blame production delays on the government. 

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12 Comments on “Volt Birth Watch 53: GM Wants More Tax Breaks...”

  • avatar
    Alex Rodriguez

    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.

  • avatar

    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.

  • avatar

    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."

  • avatar

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

  • avatar

    Kill the dividend than we’ll talk.

  • avatar

    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.

  • avatar

    Odds on GM will get them.

  • avatar
    John Horner

    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.

  • avatar
    Alex Rodriguez

    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???

  • avatar

    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…

  • avatar
    Captain Tungsten

    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.

  • avatar

    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….

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