We should have known that when the federal government gets into the auto business, they would resort to their old tactic…extortion. As with the federal income tax, it’s pay up or suffer the consequences.
SPRING HILL, Tenn. – The news that General Motors wants hundreds of millions of dollars from the state up front to bring production of its new small car to Spring Hill has only further increased anxiety among the plant’s 2,500 workers.
Workers at the plant they’re hopeful the automaker will select its plant to build the new small car, but it’s looking less likely.
Governor Phil Bredesen on Thursday, upon returned from a meeting with GM officials in Washington, said the automaker requested cash upfront to utilize Spring Hill’s plant to build the new small car.
He said GM doesn’t care about tax credits and only wants to know how large a check the state is willing to write upfront.
“This is for them right now,” he said. “[It’s] all about frontend money.”
The governor has said this is not a year the state can “spare” a couple hundred million dollars.
On Friday, Jim Smith, interim city administer for the city of Spring Hill, said while the news is “discouraging”, “it’s part of the process and we have to wade through it.”
The GM plant is an economic engine in the Spring Hill community and helps support Maury County through property taxes and spending at local businesses.
The governor isn’t taking Tennessee out of the running for the new car he just has to figure out how to convince GM to build it here.
“I was real pleased with Governor Bredesen’s stance on it,” said local business owner Daniel Hartsfield. “He is trying to keep GM from holding the state hostage. The plant should be here.”
The Spring Hill plant will go idle in November when production of the Chevrolet Traverse shifts to a plant in Michigan.
It is not known how long it will remain that way.
source: WKRN Nashville