GM Lordstown plant in 2017
General Motors violated the terms of two Ohio state economic development agreements when it closed down the Lordstown Assembly last year. As a result, the state can require that GM repay the $60.3 million worth of tax breaks it was handed under the agreement – but it turns out that Ohio has a different plan for GM.
According to the Herald Star, GM and Ohio may be in talks about potentially waving the $60.3 million – so long as the Detroit-based automaker commits to making further investments in the state.
“They have many plants here. We hope they continue to invest here,” Ohio governor Mike DeWine said this week. “They employ many workers here, so while they do owe us money because they did not carry out all of the terms of what they said they were going to do, we’re looking for an avenue where by we can encourage more investment in Ohio.”
Earlier this week, the Ohio Tax Credit Authority tossed out a recommendation seeking full repayment of the tax incentives from GM. The state now plans to work closely with GM to secure further investment, though it’s not entirely clear what kind of operations or facilities may in the cards for Ohio.
We think it’s the right thing to do,” DeWine also said. “We don’t know what that will be, but we hope it will be a win-win. A win for the people of the state of Ohio who are going to see more jobs created and a win for General Motors.”
That said, if the two can’t come to an agreement, Ohio can still go after GM for the money.
“If we can’t get an agreement, then we can’t get an agreement,” he added. “We’ll have plenty of time to go after them in regard to the money. It would be best if we could work something out and we’re going to try to do that.”
The Herald Star reports GM was first awarded the tax credits in 2009, receiving $14.2 million in exchange for job creation at the Lordstown Assembly plant and another $46.1 million for job retention. GM laid off 4,500 workers when it closed Lordstown Assembly and canned the Chevrolet Cruze compact car.
GM has also made other recent investments in Ohio, namely a large new battery plant it is currently building in conjunction with its supplier, LG Chem.
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My first questions is, where in the world did you ever find someone in finance with common sense ? Actually negotiate for the benefit of the people.
WOW. My compliment to you Ohio. Keep up the good work.
GM needs to retool, reopen and rehire all the employees back
Sounds like a deal is brewing. GM is probably looking for a vehicle and parts to make in the Lordstown plant with Lordstown motors.
Well for the first time in a long time we really have a good governor here in Ohio.
He may look like a nerdy collage professor but he really is one of the few political people that just tries to do what is best.
He handled the GM shut down well as he knew that it was a dying plant to start with and with so much GM investment in Ohio better deals could be worked out in time.
Lordstown was a older large plant that really was on borrowed time. Everyone here knew it but it is hard to lose jobs no matter what.
Now with the Battery plant and possibly more to come things should balance out here. Ohio has the second most GM facilities only behind MI so the state hold favor with GM.
If the EV program takes off the Battery plant could be of much more employment value than an out dated old plant that may not have lived on even if the Cruze had survived.
Lordstown motors is not going to do much unless GM takes it over. The fleet sales are just not working out yet and the plant is just way more than they need.
I think DeWine left much to be desired for his coronavirus response, but in terms of the economy, I agree with you. Our state's economy was booming prior to the shutdowns, and a lot of that is due to great state and local planning.
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