From BridgeMichigan's Paula Gardner, having truckloads of cash and no real vision adds up to circa one billion US dollars in hemming, hawing and broken promises…
The spending so far is roughly half of the $2 billion-plus Michigan has pledged since 2022 to five companies: Ford Motor Co., Gotion Inc., LG Energy Solution and Our Next Energy for battery factories, and General Motors Corp. for a battery factory and expanded EV production.
[Gov Gretchen] Whitmer announced the companies would invest $16 billion total and create 12,000 jobs. But all the projects are behind schedule and two have downsized, reducing best-case job expectations by 13%.
And records refute claims from state officials that companies won’t receive money unless they meet hiring goals. “[…]the money hasn’t gone out the door,” Quentin Messer Jr., CEO of the Michigan Economic Development Corp. and a member of Gov. Gretchen Whitmer’s cabinet, told Bridge in late May.
Bridge used the Freedom of Information Act to obtain records showing that Michigan has already given $51 million in loans and spent at least another $600 million on utility hookups and factory equipment, in addition to the land purchases for two of the five battery megadeals, Ford and Gotion. GM has received at least $468 million of the state’s combined $600 million incentive promise for a battery factory in Delta Township and an expanded EV factory at Orion Assembly in north Oakland County.
Originally expected to open this year, both remain under construction.
GM won’t say when either factory may run at full capacity.
Plunk your magic twanger, Froggy!
[email protected] ☆ [email protected] ☆ [email protected]