Wednesday, May 27, 2015

GM Plans $1.2 Billion Investment In Upgrades To Truck Assembly Facility In Fort Wayne

It's a massive investment that Allen County officials say will cement GM's long-term commitment to the Fort Wayne area, but it won't create any long-term jobs. Yesterday, Gov. Mike Pence joined Allen County officials and GM representatives to announce the company's plan to invest $1.2 million in upgrades to its truck assembly facility in Fort Wayne. The project includes installing state-of-the-art vehicle painting and pretreatment technology. Construction work on the project is expected to create hundreds of short-term jobs, but GM officials conceded no long-term jobs are expected to be created as a result of the project.

According to the Journal-Gazette, Allen Co. officials last year approved $15 million in property tax abatements over a 10-year period for a prospective $1 billion upgrade to the facility. Although the Pence administration supposedly worked closely with GM officials in cementing the deal, no details were provided at yesterday's announcement on any state incentives that are being offered. If GM qualifies for a new tax credit created by the General Assembly this year, state incentives could easily total in the tens of millions of dollars, and that may be why state officials were mum on the size of the state contribution to the deal.

It was recently announced that Indianapolis' Rolls Royce operations would qualify for a $17 million incentive for agreeing to spend a half billion dollars in upgrades to its facility on Tibbs Avenue that won't create a single job. That so-called refundable tax credit allows major companies to reduce their Indiana corporate tax liability to less than zero and actually recover a refund from the state to make up the difference. The Journal-Gazette notes that Pence voted against a government bailout out of GM while he was a member of Congress. Pence credited the local workforce for GM's decision to invest here. 


Anonymous said...

Pence is just a fake conservative just like Mitch Daniels is! But in Pence's cause he is not malevolent like Daniels he is just an idiot!

Eric Morris said...

We must suspend the free market in order to save it from those Commie cheaters in China.