UPDATE: How much Federal taxpayer bailout money has GM received?

[Exterous]

Originally posted by: rudder
Michigan was chosen to build the new small GM car

Bad and good for Tennessee. I am glad to see GM go and hoping they will at least reimburse the taxpayers of Tennessee for paying unemployement for all the idled GM workers for 18 months and spending $35 million taxpayer dollars to teach GM employees how to build the Traverse. Let the taxpayers of Michigan deal with it now.

The bad is that there are a lot of GM suppliers in the state that will close shop.

The plant is one of GM's newest and most modern so maybe a viable company can come in a buy it. Volkswagen is building their plant in Chattanooga and Nissan just announced 1300 jobs at least will be created when they start building an all electric car in Smyrna, Tn.

Originally posted by: Pulsar

Secondly - these are not 'demands'. GM has several options on where to make this new vehicle. If X location > Y location > Z location, then it makes perfect sense that for Z location to = X location, you ADD something. This isn't a demand. It's simple business sense. They are giving Tennessee a chance. If Tennessee doesn't seize it, there are better locations to build that vehicle.

There's a big difference between blackmail - aka 'do this or ELSE', and common sense. Rudder sees this in one view - and it came across loud and clear in his post. I take issue with that viewpoint.

Bredesen had previously made critical remarks about the bankrupt automaker's demands for up-front payments from states in return for selecting among plants that are scheduled to go on standby later this year or are already closed.

Bredesen told reporters last week that his impression from meetings with GM officials was that the company wants a large cash payment and not long-term tax incentives.

"It certainly was a new look for me at how they are approaching this thing, which is absolutely: 'Tell me how big of a check you're going to write,' " Bredesen said at the press conference.

So maybe technically not blackmail.... but what would you call it? Pay to play?

If there are states willing to pay that sort of money why shouldn't GM take the offer? It's not like they don't need the cash. And - no offense - but I wouldn't take a politician's words as gospel so if he said they 'demanded' up front payments I have a grain of salt with which to take that. Nothing against your governor - just something I would do for any politician

 

[rudder]

Originally posted by: Exterous
If there are states willing to pay that sort of money why shouldn't GM take the offer? It's not like they don't need the cash. And - no offense - but I wouldn't take a politician's words as gospel so if he said they 'demanded' up front payments I have a grain of salt with which to take that. Nothing against your governor - just something I would do for any politician

Bredeson is not my favorite politician... but I believe him in this case. One... he is the type of governer who would pay the money. However he is also the type of governer that believes in a balanced budget (plus it is a law). Due to a billion dollar shortfall in this years budget it was cut 10% across the board. There was simply no spare cash for the $200 million demand in this years budget. GM is Michigan's money pit now.