Posted on 04/10/2015 7:48:26 AM PDT by Theoria
State and local officials in Ohio are proposing to fund a new factory for Fiat Chrysler Automobiles NV in Toledo, an unusual incentive that would require hundreds of millions in financing, according to people familiar with the plans.
The proposed plan is the latest attempt by public officials in the state to secure production of the iconic Jeep Wrangler, which has been built in Toledo for decades. Negotiations on the plan are continuing between officials and the auto maker, and other financing proposals are on the table, the people said.
Fiat Chrysler Chief Executive Sergio Marchionne has said the next generation Wrangler, due in 2017, likely would require either a new or significantly updated factory because the capacity of the current one is constrained. The costly overhaul is necessary to convert the Wrangler to an aluminum body, which Fiat Chrysler needs to lighten the vehicle and improve its fuel economy.
Building a new auto factory can cost between $200 million and $400 million, say industry experts, excluding tooling and other equipment required for production. The proposed new building’s cost could potentially be financed by government-backed programs, the people familiar with the plans said, allowing Fiat Chrysler to repay the money through a lease-to-own arrangement.
A spokeswoman for the Toledo mayor’s office and a spokesman for Ohio Gov. John Kasich declined to comment.
Toledo officials delivered their pitch to the U.S.-Italian auto maker in March, hoping to persuade Mr. Marchionne and other Fiat Chrysler officials not to move Wrangler production to another state. City officials also have assembled nearly 100 acres of land to offer Fiat Chrysler, but have worried that the land alone wasn’t enough.
(Excerpt) Read more at wsj.com ...
How in the hell are we ever going to free this country from the symbiotic relationship between Big Government and Big Crony Business?
Pretty wild how obamajamama just gave Fiat and the union Chrysler.
Some Candidate ought to start talking about ‘Welfare Reform’...Corporate Welfare Reform.
Another chink against Kasich.
We’re not. They’re joined at the wallet: OURS.
And they closed and razed the big Chrysler plant in Twinsburg.
Back in the 1970s as it became apparent the steel industry was downsizing for good and, with much fanfare, the Commonwealth of Pennsylvania built a state of the art automobile assembly facility near here. It lasted for a few years until the subsidies and tax incentives ran out.
Then it sat idle for a few years until the Commonwealth owners decided to bid out salvage rights. A company from China won. They took out everything of value right down to the steel staircases.
The shell of the building was still nice so, eventually, the Bob Casey Sr. administration decided it would be prudent to put the building back together so they could attract another company. Eventually, they did so and with a nice subsidy and tax break package, they attracted another big manufacturer.
Guess how long they stayed? If you guessed until the subsidies and tax breaks ran out, then go to the head of the class.
To the credit of the former Corbett administration, however, the Commonwealth sold the facility. There was only one tenant (a spin-off from the previous marquee tenant) operating a viable business at the time which occupied about 1/10th of the facility. The new owners, however, subdivided and managed to lease about 80% of the remainder to smaller businesses before Corbett left office. How long they will last remains to be seen.
More like parasitic infestation of the taxpayers!
Wife’s cousin worked there for 15+ years.
Knew it closed but didn’t realize it’s gone.
Middle class jobs are precious.
These days anybody promising them gets lots of gravy.
On a related note, I read that Mexico is getting back a lot of the auto component jobs that originally were in the US, went to Mexico, and then to China.
Apparently China has lost its cost advantage over Mexico.
” didn’t realize it’s gone.”
Pretty much an empty field. I’ll have to drive by soon, and see if there’s anything left.
My guess is they tried to sell or lease, got no takers, and tore it down to save on property tax.
I remember driving by they would have some cars on platforms out front for advertising.
Fiat-Chrysler has Jeep and Ram. No other general appeal vehicles except maybe minivan, which could be rolled into Ram. Shut down the rest of their crap and Jeep-Ram could do just fine without stealing.
“tore it down to save on property tax.”
Probably. And now they get to build a new one in the armpit of Ohio!
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