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GM keeps Ohio, Valley 'Cruze'-ing
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Valley residents
overjoyed by car’s arrival -
Big Lordstown
announcement today -
LORDSTOWN GM/
State assistance -
GM's revival to
benefit Valley -
GM plans to invest
millions in Valley,
Lordstown -
GM engineer: Volt to
be ready on schedule -
GM to invest $445M
in Thailand plant - State OKs more funding
for GM plant expansion - New shift at GM
rolls out well;
CEO plans visit - GM posts $15.5B 2Q
loss, 3rd-worst in its history - GM to cut 15 percent
of salaried workers - Toyota outsells GM
in 1st half - Analysts expect GM
closingsto continue - GM cuts back
on NASCAR spending - GM retiree offers worker
incentive - GM tries to soften
the blow to retirees - Workers glimpse
GM's Chevy Cruze - EDITORIAL: Cruze to
fuel GM Lordstown’s
ongoing positive evolution - GM's CEO dismisses
bankruptcy rumors
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Stories
The state is providing more than $80 million in incentives to GM.
By DAVID SKOLNICK
VINDICATOR POLITICS WRITER
LORDSTOWN — The success of the General Motors complex here is not only central to the economy of the Mahoning Valley, but all of Ohio, state officials say.
Because of that, state officials have gone the extra mile when it comes to the Lordstown plant.
The state is providing more than $80 million in incentives to GM for the company to build the Chevrolet Cruze. Production on the next generation small car is to begin in mid-2010.
GM is to officially announce today a multimillion-dollar investment in its Lordstown complex and release photos of the Cruze.
On hand for the announcement is to be Rick Wagoner, the company’s chairman and chief executive officer; Cal Rapson, United Auto Workers international vice president of the GM Division; Gov. Ted Strickland and Lt. Gov. Lee Fisher.
“The governor believes that GM will continue to be a strong partner with the state,” said Keith Dailey, Strickland’s spokesman. The governor “will continue to do everything he can to support the company and its workers.”
While GM officials aren’t discussing how much money it is investing at the complex, the Ohio Department of Development wrote in a news release that it could be $317 million.
The state is providing $82.1 million in tax incentives to the company.
“Lordstown is central to Ohio’s economy even beyond the Mahoning Valley,” said Steve Schoeny, the DOD’s director of economic development operations.
The state is providing a 75 percent Job Retention Tax Credit to cover the current work force that is expected to save GM about $77.7 million.
Also, the state is giving a 75 percent Job Creation Tax Credit aimed at new hires that is expected to save the company about $4.4 million.
The incentives are refundable tax credits against what the company pays in corporate income taxes.
If GM pays $100 in income tax withholding on a worker at the Lordstown complex, the company would receive a $75 credit toward its other state tax obligations.
GM recently hired about 1,000 employees for a third shift at the plant, including more than 250 former Delphi Packard workers.
One of the keys to keeping and expanding the automotive company’s operations in Lordstown is economic incentives from the state, Schoeny said. There is strong competition among states for automotive plants, he said.
Ohio started talking with GM more than a year ago on what it would take to have the company build its next product line in Lordstown, Schoeny said.
In June, the talks took a positive turn and were finalized shortly thereafter, he said.
During his speech today, Fisher will discuss “how much we appreciate our partnership with GM.”
State legislators from the Mahoning Valley say they are thrilled at the commitment made to keep GM at Lordstown.
“I’m delighted that the governor and lieutenant governor have taken very seriously the need to use all of their powers to keep the best GM facility in Lordstown,” said state Rep. Tom Letson of Warren, D-64th. “They are well aware of the importance of the facility to the Valley.”
State Sen. Capri Cafaro of Liberty, D-32nd, said the state tax incentives were “an integral piece of the puzzle” that led to GM’s decision to expand in Lordstown. “GM Lordstown is part of the backbone of the regional economy.”
U.S. Rep. Tim Ryan of Niles, D-17th, said the GM expansion is “absolutely huge” for the Mahoning Valley, adding, “This hopefully sends a message to other companies that we are the place to be for business.”
This isn’t the first time the state has stepped forward to keep the GM plant in Lordstown.
Back in summer 2002, the future of the GM plant in Lordstown was uncertain. The company had announced it was eliminating the production of the Chevrolet Cavalier and the Pontiac Sunfire, the two cars made exclusively in Lordstown, by 2004.
The state provided an incentive package of about $63 million, then the largest ever given by Ohio to a company, to GM to build its new small-car line, the Cobalt, in Lordstown. That package helped GM make the decision to keep the Lordstown plant open, and invest about $550 million in the complex.
skolnick@vindy.com