Ohio Tells GM It Wants $60 Million In Subsidies Back For Shuttered Lordstown Plant

The Lordstown automotive plant may no longer be owned by General Motors but the automaker could get in trouble, according to a new report. The Truth About Cars, quoting ProPublica, says the state of Ohio sent GM a letter in March this year asking for repayment of more than $60 million in subsidies.

Several years ago, the two sides agreed on sizable tax breaks in exchange for the manufacturer operating the factory until at least 2027. GM discontinued the Cruze sedan that was assembled there in the spring of 2019, leaving the plant with no actual production. GM later sold the site to a company called Lordstown Motors, which promised to build electric trucks.

carloslassiter - 6/17/2020 12:20:07 PM

+2 Boost

That's not a good phone call to get.

CANADIANCOMMENTS - 6/17/2020 2:53:59 PM

+3 Boost

A law should be passed that no future tax dollar revenue stream be ever given away just to attract a plant or a stadium etc. Tax payer dollars should go for roads and schools and such. Let the business case justify itself for the venture without looking for a handout.

vdiv - 6/17/2020 6:51:00 PM

+2 Boost

No trickle-down dollar multiplier Reaganomics for you!

CANADIANCOMMENTS - 6/17/2020 7:10:26 PM

+2 Boost

No sir. I have a minor in Economics. Even University students know trickle down anything is pure bunk.

MDarringer - 6/17/2020 8:13:59 PM

0 Boost

Socialism and sound economic practice are mutually exclusive.

CANADIANCOMMENTS - 6/17/2020 10:32:23 PM

+2 Boost

As a commenter from a nation that will soon be $30 Trillion dollars in debt that is also said to be staunchly capitalist, I think you may have your facts confused. I suspect much of the US will see the world the way the rest of us do after November.

MDarringer - 6/17/2020 4:23:16 PM

-1 Boost

Ohio gave Mary money, but Mary botched the game. The money needs to go back.

carloslassiter - 6/17/2020 6:49:58 PM

+2 Boost

GM will claim that Lordstown Motors bought the deal, including all the liabilities.

MDarringer - 6/17/2020 8:30:13 PM

0 Boost

Mary the gender token isn't smart enough to think of that angle.