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.
