With Friends Like These, Who Needs $50b?

with friends like these who needs 50b

The same suits who said GM's GMT900 SUVs were going to be the bomb have watched SUV sales implode. And so they've cut back on GMT900 SUV production as fast as they can; which hasn't been very fast 'cause how can it be what with the UAW and all. Meanwhile, the communities that depend on GMT900 production for jobs and tax revenue are saying, what the Hell are we going to do now? The answer is, of course, nothing. There's nothing they can do. But politicians have got to be seen to be doing something. So Lt. Gov. Lee Fisher of Ohio heard of GM's cutbacks in Moraine (1000 jobs lightly toasted) and did the right thing — at least as far as getting re-elected is concerned. Fisher offered GM $56m worth of tax credits and grants to "encourage" The General to crank-out SUVs that nobody wants to buy. "The proposed assistance announced Wednesday consists of a $54 million job retention tax credit," The Chicago Trib reports. "And a $2 million 'rapid outreach' grant." Rapid outreach? Is that like "rapid reach-around' without the "around?" Anyway, fat chance. Pony-up $25b to $50b like the feds and then we'll talk. The Trib says "a message seeking comment was left for GM." Can you imagine the response? "GM is fully committed to its Ohio work force. Sorry about the no-sales-due-to-gas-prices thing, but it's not our fault. Thanks for the offer. We'll get back to you on that. Expect to hear from us sometime around, say, never."

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  • SupaMan SupaMan on Aug 28, 2008
    So Lt. Gov. Lee Fisher of Ohio heard of GM's cutbacks in Moraine (1000 jobs lightly toasted) and did the right thing — at least as far as getting re-elected is concerned. Fisher offered GM $56m worth of tax credits and grants to "encourage" The General to crank-out SUVs that nobody wants to buy. Anything to get re-elected I suppose. But this just takes the cake: GMT900 sales are waaaay down and to get re-elected, this guy wants help the workers by making them crank out more? GM showed rare common sense in this case.

  • DetroitIronUAW DetroitIronUAW on Aug 28, 2008

    There's nothing unusual about this. We had a superstar politician roll through Michigan during the primaries. He promised we'd get all our automotive jobs back if we just vote for him. He had a plan and everything. Oh really?

  • on Aug 28, 2008

    The Moraine plant is not UAW and they don't build the GMT900 models. Other than that a very accurate story.

  • Picard234 Picard234 on Aug 29, 2008

    Hmmm, seems to me this news story has been edited!

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