General Motors recently announced three possible production sites for a U.S.-built small car, but that list could be down to two as one state struggles to find sufficient funding. GM has asked Tennessee for $200 million in tax incentives in order to reopen its Spring Hill plant, but the Volunteer state says such a large payoff is not in the budget.
Like most states, Tennessee is struggling to make ends meet and simply doesn’t have the financial wherewithal to put $200 million towards the reopening of the Spring Hill plant. “Frankly, the numbers that they were talking about are well outside of what I think we can do with the budget situation that we have,” Tennessee Gov. Phil Bredesen told The Tennessean. “This is not a year in which I’ve got a spare couple of hundred million dollars from the rainy day fund to use for something like this, so we’re going to have to do some serious thinking about how we respond to their request.”
GM’s Spring Hill plant opened in 1990 as a Saturn plant. The Spring Hill facility produced Saturn vehicles until it was shuttered in 2007. After a year-long shutdown, the plant reopened to produce the Chevrolet Traverse crossover, but was idled as part of GM’s recent bankruptcy plan.
GM’s Orion, Michigan plant is also in the running for the forthcoming U.S.-built small car and may now be the frontrunner. Michigan’s state officials are reportedly working on an incentives package to convince GM to keep the Orion plant open.
06/12, 2:51 PM
posted by:
bigs4610
Why retool a plant that makes a vehicle that just came out?
Leave Spring Hill the site for the Traverse production
and retool Orion, since thats where Pontiac’s were made. and you axed them
makes more sense to me
06/12, 2:58 PM
posted by:
Madcapp
Somebody tell me whiy GM beligerently refused to make desireable cars for the last 35+ years.
06/12, 3:21 PM
posted by:
JakeK66
JohnnyC, it’s a BIG night tonight! I honestly see this game as one of the biggest in years – and potentially impact the league for years to come if the Pens come out winning – they could become a reincarnation of the 80’s Oilers. No one is giving them a shot, but it;s one game – ANYTHING can happen!
06/12, 3:26 PM
posted by:
bigs4610
@Madcapp
you’re blind, and dumb
06/12, 3:55 PM
posted by:
Dwide Schrude
That’s right Jake, anything can happen. My fingers are crossed for the Pens.
06/12, 3:59 PM
posted by:
johnnycanuck
She’s unanimous then. It’s the Pen’s night.
06/12, 4:27 PM
posted by:
bigs4610
negative.
Wings win either 3-0 or 5-2 for a final score
06/12, 4:38 PM
posted by:
johnnycanuck
4-3 Pens. Overtime is a distinct possibility. Be sure those wobbly pops are well stocked!
06/12, 7:26 PM
posted by:
Mutant@DCX
200 million is chump change, pony it up yourself gm. Add it to the $100 biilion IOU.
Hey guys, stick to predicting the auto industry. Wings win 2nite.
06/12, 9:01 PM
posted by:
Payton Byrd
As a resident of Tennessee I say SCREW GM. Nissan just moved their N.A. Headquarters only 30 miles away in Franklin and I can see GM being able to sell the facility to Nissan at a bargain price. And Nissan has been far easier to work with than GM was. Also, VW loves Tennessee as well and I could see them purchasing this facility.
06/12, 10:14 PM
posted by:
carstuff
Payton, Nissan got $200 million in tax breaks to move there.
“Based on $197.6 million in tax breaks and other incentives Nissan is getting from the state of Tennessee and local governments, it’s required to employ 1,275 at the new headquarters, which means it likely will be hiring replacements for those staying behind.”
06/14, 1:57 PM
posted by:
teahead
So the rednecks in TN will give huge tax breaks to foreign car companies, but not GM?
Sounds like another ploy to destroy GM to destroy the UAW.
06/15, 1:08 AM
posted by:
Blakkarr
The turn-down is not big shock to me. Isn’t Tennessee the staet that wants to pony up $500M to VW for ONE plant?
06/15, 10:55 AM
posted by:
shaver
Who do they think they are the San Diego Chargers?
06/15, 7:10 PM
posted by:
Fleming in Tennessee
Every state has given multi-millions to every Jap company for plant location, but scream when an American Company asks for help! Who asked the American Auto Industry for help during World War II?