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Tenn. governor says GM wanted $250 million for plant

By ASSOCIATED PRESS   Wednesday, July 1, 2009 - 9:31 p.m.
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NASHVILLE, Tenn. — Tennessee Gov. Phil Bredesen said Wednesday that Tennessee wouldn’t have met General Motors’ cash requirements to build a small car at its Spring Hill plant even if the state’s finances were in better shape.

GM last week selected a facility near Detroit to assemble small and compact cars over two other finalists in Tennessee and Janesville.

Bredesen told The Associated Press after a groundbreaking ceremony for a highway project in Nashville that GM had wanted "north of $250 million" in upfront money to select Spring Hill.

"That that was not even remotely in the range of something we could do at this time — or would really even do on this project even if times were good," the Democratic governor said.

Bredesen said the state offered about $20 million in training and education money in addition to long-term tax breaks.

"GM made it clear when we were talking with them that they didn’t care much about those things, what they really cared about was how much cash you could put up on the front end," he said.

GM’s choice of the Orion Township, Mich., site leaves the future of about 2,500 employees at the Spring Hill plant uncertain when it stops making the Chevrolet Traverse around Thanksgiving.




reader COMMENTS (37)
JozeMozes
Jul 4, 2009 at 1:29 p.m.
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angry_again, your name says it all.
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Think before you post your patriotic rants and question anothers. Naive'
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My post made no sense to you as you are incapable of complex thought. I do not need to report numbers, facts or charts. Read the news and their supporting documentation for the last 20 years.
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916WI, don't ask for an apology from such a close minded person. You won't get one you commie car driving unpatriotic person you. I and MANY other Americans agree with your vehicle choices. I simply chose to never drive an import as so many others have and have suffered the recalls and issues over the years for doing so while my neighbor has enjoyed his Accord and Crv I have suffered with Ford but watched them become better over the years and for that competition I am grateful.

916WI
Jul 3, 2009 at 7:44 p.m.
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Angry....your rants don't make any sense and aren't worth taking the time to read:) Did you read my posts? I did buy a couple of American cars--they were junk and I moved to the Japanese(not Jap) cars and have been happy since. So basically I'm a traitor because I don't wish to spend thousands of dollars on what I perceive to be junk? You have had good luck with their cars, whereas I haven't--so I moved on. Last time I checked this was a capitalist country which has become as great as it has because of free enterprise and the innovation that is fostered by it. I pay my taxes, which subsidized saving the mess that GM has become, so I think I've done my part. Please apologize when you get a chance, as your label was uncalled for.......

angry_again
Jul 3, 2009 at 5:09 p.m.
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JozeMozes,
Nothing you said made any sense what so ever. Think before you post. You stated no fact, no sources or numbers, and the opinion wasnt worth the time to read.
I am a patriot and love my country, I will fight and die for what it stands for! Would you? or would you be one of the i'm not going because it don't fit my schedule people? I am just sick of those who wont stand up for our country or people. My point is do what is best for America in this crucial time. It's like JFK said "Ask not what your country can do for you, ask what You can do for your country." Right now is the time our country needs us to do for it.

JozeMozes
Jul 2, 2009 at 6:12 p.m.
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angry_again, I have never purchased a new or used import. Clear on that?
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It is you the traitor calling others out. It is their right to purchase as they choose. Remember that. It is GM's fault for whining about "skewed" publications claiming the superiority of certain brands.
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I can tell you with 100% certainty that Honda sets the bar for ALL others with Toyota and Hyundai fighting for 2nd and Ford making WONDERFUL strides.
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GM and Chrysler have a long way to go. That is not to say they do not have some good models. Models are a far cry from being a quality conscious manufacturer.
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Incidentally has anyone ever noticed that Japanese imports use many more European,American and Japanese components and assemblies then their American counterparts?
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I am by no means an expert but go to a few trade shows and have noticed this over the years. I would venture to say if true that it is no wonder American brands are suffering. Assembly is only one aspect of a quality vehicle.
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Purchasing from vendors to save a buck in lesser developed countries is fraught with peril. Ask anyone in fabrication, construction or machining.
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Their metallurgy, machining and molding is so EuroAmerican 1930's.

progressive6
Jul 2, 2009 at 5:58 p.m.
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angry-again, your apology is accepted :)

angry_again
Jul 2, 2009 at 5:46 p.m.
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progressive6, I misread your posting. Please disregard my adding you to the list of traitors in this discussion.

angry_again
Jul 2, 2009 at 5:38 p.m.
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916WI,
wiscchick,
progressive6,
Your all traitors to your country, U.S. built cars are great quality, no less than any foreign equivalent. Where do you think the Japs and Chinese etc. COPIED their cars from? Where do you think all the safety features ALL originated? The U.S. has always led the way in safety. I have owned many, many American cars and they have no more problems than the foreign ones.
You just keep telling yourself you are in the right for not supporting American companies until there are no more to support. Anti American people like you are the reason for most of this mess to begin with, with the help of politicians.
To hell with free trade.. Jack the import tariffs up again so we can still make an honest living and have some U.S. owned manufacturing. That is the only thing that will fix the economy. Period.
Instead of spending your money on that foreign car, buy an American one, if it has a problem take it to the dealer, it's under warranty anyway and let the dealer mechanic get some work. And don't brag about your foreign goods, it makes you look even worse.
In times like these we all should try and buy as much local goods as possible and frown upon anyone who doesn’t, they don’t care about American jobs unless its theirs, they want a cheap car and could care less if the people who made it get paid nothing and have no health benefits and drive us all out of work.
BTW saying "God bless the USA" ten times don't help when you don't do your part to make it work.

helge1939
Jul 2, 2009 at 4:58 p.m.
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How much did WI offer ?

916WI
Jul 2, 2009 at 3:43 p.m.
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Pubs....I'd rather take my chances with a tax increase over buying another American car--it would probably be cheaper to be hit with a larger tax bill as opposed to paying the repair bills on another American car:)

progressive6
Jul 2, 2009 at 1:09 p.m.
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God Bless The USA, Support Our Troops and the chant USA,USA,USA, is seen and heard a lot lately on these blogs and around town. Lots of Patriotism. Yet, when it comes to buying cars and trucks from the Detroit three, It's a different story. You then hear, nobody's going to tell me where to spend my money, if I want to buy a car or truck from an Asian, Korean or European company, that's my right. Further more you hear, American car companies make junk. God Bless The USA, Support Our Troops, USA, USA, USA! What's wrong with this picture?

pubsrus
Jul 2, 2009 at 12:53 p.m.
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wiscchick--don't biatch then when you can't find a job or unemployment numbers go through the roof. somebody is going to pay for the unemployed, uninsured, and working poor. so don't complain when the feds cut funds to the state who inturn cut funds to county and local governments who will then raise taxes. it is coming and has been for a long, long, time.

dukeman
Jul 2, 2009 at 12:52 p.m.
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Seems logical that if we the American taxpayers are bailing out GM with our American $$'s, stipulations should of been put into place that "all" foreign made GM products be brought back and made in states. I know its more compicated than it appears, but only makes sense.

momof5
Jul 2, 2009 at 12:19 p.m.
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I cannot believe that Michigan has that sort of cash lying around.... Stupid move on GM's part. I don't mind how the Spark looks. But, I don't think that is here GM should be placing their efforts. How about worrying about rebadging the G8 as the new Impala??!

Now....if they offered a Spark equivalent to the "twins" in Transformers, I'd be all of it! Gold tooth and all :)

wiscchick
Jul 2, 2009 at 12:18 p.m.
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I, too, used to buy American. I owned three Chevrolet cars (two Cavaliers and a Malibu). The Cavaliers were in the shop on average 2-3 times a year; the Malibu was in for service TWICE IN THE FIRST MONTH. I have now owned a Toyota (11 years) and a Honda (3 years). The only thing that went on the Toyota (outside of the tires, which finally needed replacing around 65k miles) was a light bulb which burned out in the taillight. Got that replaced at Hesser in under 5 minutes. Have yet to do anything with the Honda. Once an American company can compete with that, I'll buy American again.

garyprimer
Jul 2, 2009 at 10:19 a.m.
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GM is acting like a bunch of thugs demanding money from poor and unemployed people. Who do they think will buy the crappy little car that they are going to build? The other car companies are so far ahead of them in this field that it isn't even close and I can hardly wait to see what they will come up with for a sticker price.

Zoom
Jul 2, 2009 at 10:11 a.m.
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$779M tax credit package from the Michigan Economic Growth Authority.
$100M 25-year, 100 percent tax abatement from the municipality of Orion Township.
$136.5m in retraining money from Oakland County.

Zoom
Jul 2, 2009 at 10:07 a.m.
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"Do you think MI gave them "north of 250 million"?"

Michigan, through various local and state authorities, gave GM about $1B in tax and other incentives, some of it spread over 25 years, for the new car manufacturing.

916WI
Jul 2, 2009 at 9:44 a.m.
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Pubs......I guess I have to give you that "pure and utter bs" because that is the reason. I've owned 4 American cars--3 manufactured by GM and had problems with ALL of them. Gasket leaks, parts that would just fall off, etc.....Always maintained well and not abused--2 were sports cars that were stored during the winter.......I bought a "beater" Honda with 130K on it to drive during the winter, expecting it to last just the winter. That car lasted 3 years before I sold it for what I paid for it without having to put a dime in it. Eventually ended up selling off the American cars and have had 4 foreign cars since, all with the same zero problem track record. I don't think I'll ever switch back........I realize that the American manufacturers have probably made improvements in quality in an effort to compete with the Japanese, but I'm not going to risk it again.......Would I like to support an American company--yes. Do I want to risk spending $25K on a nightmare? Not so much.......

oldtimer
Jul 2, 2009 at 9:42 a.m.
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GM will never never be the company they were, in fact I dont think they will make it now. I retired from GM and my next car will be a FORD. GM was losing control of their business 20 years ago, they quit running it like a business.

ekim8404
Jul 2, 2009 at 9:27 a.m.
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I don't think WI or TN was ever in the official running anyway. Do you think MI gave them "north of 250 million"? I don't think so, not as bad as it is for them right now. GM is a Detroit company, and Orion was closer to headquarters. My guess is they asked for a similar amount from WI, knowing full well neither TN or WI would come up with it.

pubsrus
Jul 2, 2009 at 9:07 a.m.
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916wi---that philosophy is exactly why we have the trade deficits we do with China and Japan. The United States has sold its soverignty to other countries for the love of money. We have assisted them in that endeavor.
My real question to you is why don't you want an "American" car? Don't give me that bogus argument that they don't make a quality car. That is pure and utter B>S. By buying "foreign" American "assembled" cars you allow the devaluation of our dollar, making our country for sale at a discount. While profits are sent abroad so the foreign country can come back to the U.S. and buy more of our nation. It is a vicious cycle we have been in for the last 30 years. Our country is well on its way to being a third world country within the next 50 years. I for one will not contribute to that and you shouldn't either.

rooster
Jul 2, 2009 at 9:01 a.m.
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more anti american sentiment.

Badgerlvr
Jul 2, 2009 at 8:53 a.m.
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$250 million...$50 million to build the car...$200 million in bonus's to the executives. Seems to make sense to me...NOT!

JozeMozes
Jul 2, 2009 at 8:52 a.m.
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hun2400 - Do you have any sources regarding the incentive packages Tennessee gave foreign auto companies?
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916WI - I hope this is the only short sighted response I read all day. Most of us would be perfectly happy purchasing cars built by our neighbors if the BRAND was as reliable as Honda or Toyota. Sure GM, GMC, Buick, Pontiac, Cadillac, Ford, Lincoln, Mercury, Chrysler has some very reliable automobiles on par with the Japanese but which?
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The American public is better informed then these companies ever gave them credit for and once your brand is labeled it is hard to change that social aspect REGARDLESS of advertising and gimmicks.
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200 million is a steep cliff given GM's track record even with assurances. Honda, Toyota or Ford possibly. GM? No thanks.

916WI
Jul 2, 2009 at 8:29 a.m.
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Hun......The ever increasing majority of us don't want American cars. I would have no problem buying a "foreign" car built in America by Americans.......

bobb1951
Jul 2, 2009 at 7:40 a.m.
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G.M.(GIMME MONEY)Held 3 states for ransom.No thoughts for workforce(s),communuties.Corporate greed at its finest.How soon before there is only empty USA plants,and all chevys built on foriegn shores?

hun2400
Jul 2, 2009 at 6:30 a.m.
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What amazes me is that Tenn. was willing to give the foreign car comapanies large amounts of money to build car plants there. Not so with American Car companies!?? Keep in mind money made from selling the foreign cars in the US go back to those foreign countries. We need to back our American workers and buy American regarding any product!!!

janesvillean
Jul 2, 2009 at midnight
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Well, I'm not sure what people wanted here. Are Wisconsin taxpayers ready to foot a $200 million invoice, with the budget in the red and taxes/user fees (as threads around here show) getting some people pretty ornery already?
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Somebody in another thread said that they thought it was whipsawing (fraudulent bidding, basically), and that may be true -- GM seemed to be asking for many times more than what Tenn. or Wis. could come up with, so you have to expect that they had soft-channel information on what Mich. was able to forward. It may seem unfair, but it's probably not that different from what goes on normally. And sports teams play this game pretty openly, everywhere.
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It's like when you buy a car. You're a lot better off if you know what the car is worth in advance, rather than letting the guy at the showroom tell you what he thinks is a good deal.

someoneme
Jul 1, 2009 at 11:48 p.m.
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I hope they never come back to this town.

miyata312
Jul 1, 2009 at 11:43 p.m.
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More than likely Sara, yep Doyle would had forked over $$$$.

Also wouldnt be surprised if GM shut the Michigan plant down a year after they start building the car to instead build it in Mexico.

SarahB1
Jul 1, 2009 at 11:23 p.m.
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Does this mean that Wisconsin was ready to lay down that amount of cash to reopen the plant here?

woodsman
Jul 1, 2009 at 11:21 p.m.
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Get real people,not going to be loyal to G.M. no more! Why because you think the whole world doesn't work the same way? Then you better give up on the Your Government,your state,your employer & the list could go on. As all thoughs rich folks would say,business as usual.

guzler12oz
Jul 1, 2009 at 10:54 p.m.
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I used to be pretty loyal to GM. I think I have a new loyalty..... anything but GM.

chelleandlou
Jul 1, 2009 at 10:53 p.m.
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First GM gets bail out money from the taxpayers, then file bankruptcy, and bribe the states for more money? Boy do they have nerve.

Placebo
Jul 1, 2009 at 9:52 p.m.
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What's that fishy smell. For Wisconsin to have cut off its nose to spite its face was not the answer. GM is looking for investors, this was a strong arm for up front cash, I wouldn't be surprised if they never build this car in MI.

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