Taft offers financial incentives to Delphi

The governor thinks proposed incentives could help plants in jeopardy.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
Gov. Bob Taft told the chief executive of Delphi Corp. that he wants to provide financial incentives to help the troubled auto supply company.
Steve Miller was interested in the offer but said he must wrap up other issues before considering offers of governmental assistance, Taft said Thursday from Detroit.
During separate visits with officials from Delphi, Ford Motor Co. and DaimlerChrysler, the governor touted pending state legislation that would provide grants, loans and training money for large manufacturers and expand the state's job retention tax credit.
Miller told Taft that the reorganization of Delphi in bankruptcy court is "very early in the game" and that he isn't ready yet to talk about specific plants that are jeopardy of being closed.
Wages, health care
First, Delphi wants to address the wages and health care costs of its employees and retirees and resolve how its reorganization will be assisted by General Motors Corp., which used to be Delphi's parent company, Miller told Taft.
Delphi has 13,000 workers in Ohio, including about 5,000 at Warren-based Delphi Packard Electric Systems.
Taft said the pending state incentives could not save a money-losing plant on their own but could be a factor if Delphi has a "close call" on whether to keep a plant.
The Ohio Automotive Revitalization Tax Credit, which was proposed by House Speaker Jon Husted, would provide grants for auto companies that are making investments in Ohio, financing for pollution control equipment and job-training money.
The bill also would change tax credit regulations to include more of a company's investments, so the value of the tax credit would be higher.
Tax changes
Taft said he also talked to Miller about last year's tax changes in Ohio that eliminated taxes on machinery and equipment, which were designed to lower the tax bill of large manufacturers.
Taft said he also explained these proposals to officials from Ford and DaimlerChrysler.
He said is concerned about the presence of Ford in Ohio. Ford, which has about 15,000 employees in the state, is developing a cost-cutting plan which is expected to include plant closings and job cuts.
DaimlerChrysler, however, has been investing in its Jeep plant in Toledo.
Taft said he intends to meet with GM officials the next time he is in Detroit.
He isn't the only one meeting with auto industry executives this week as Detroit hosts the North American International Auto Show. Gov. Jennifer Granholm of Michigan met Wednesday with officials from Ford and pitched increased tax breaks and interstate highway improvements, the Detroit Free Press reported.