GM to reimburse Ohio $ 28 million in tax incentives

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Illustration from article titled GM to Refund Ohio $ 28 Million in Tax Incentives

Photo: Getty Images (Getty Images)

There were two GM-related press releases issued and an unforeseen White House event on Monday. A press release was from GM. The other more interesting press release was from the Ohio Development Services Agency. The White House event was, uh, we’ll get there.

I invite you first to read part of GM Press release:

General Motors today announced plans to invest $ 71 million in two Ohio manufacturing plants, including $ 39 million at its Toledo transmission plant and $ 32 million at its casting plant. Defiance. Work will begin immediately at both locations. These investments will allow GM to retain 240 well-paying manufacturing jobs in the United States.

GM was also sure to mention Lordstown:

Since 2009, GM has invested more than $ 3.3 billion in Ohio. Separately, GM and LG Chem have formed a joint venture – Ultium Cells LLC – and together are investing more than $ 2.3 billion to build a new state-of-the-art battery cell manufacturing plant in Lordstown that will create more than 1,100 new jobs. Construction of the facility is underway. The new battery cell manufacturing plant will play a critical role in GM’s commitment to a fully electric future.

[…]

Additionally, GM continued its commitment to the Lordstown community by working closely with Lordstown Motors Corp. since May 2019 to support the launch of its Endurance pickup. The acquisition of Lordstown Motors by DiamondPeak Holdings Corp. is expected to close in the fourth quarter and the company will be listed on the Nasdaq. GM is investing $ 75 million in the company, which includes the sale of the former Lordstown Assembly plant and production equipment.

G / O Media can get a commission

Which sounds good! With the exception of the Ohio Development Services Agency also wanted to talk about the Lordstown thing, in particular, on how GM now owes Ohio a small pile of money because of Lordstown:

General Motors will have to invest $ 12 million in the Mahoning Valley by the end of 2022 and repay $ 28 million in tax credits. In 2008, the company entered into tax credit agreements for the creation and maintenance of jobs which resulted in the issuance of $ 60.3 million in tax credits.

[…]

General Motors has been approved for a job retention tax credit in exchange for a commitment to retain 3,700 employees at Lordstown. The company has not kept its commitment to keep the jobs until 2028.

GM also received a job creation tax credit to create 200 new jobs at the Lordstown facility by 2010. The company exceeded its commitment by creating more than 800 jobs, but failed to maintain plant operations until 2037, as required by the agreement.

You can be sure that $ 28 million is a bargaining chip for a company that achieved an operating profit of $ 8.4 billion last year, but I’m happy for the state of Ohio.

Which brings us to the White House, where Trump lives part of the time. Probably because there is a presidential debate Tuesday in Cleveland, Moteurs Lordstown pay a visit.

Video of Trump and the truck:

Trump, you see, love trucks.

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