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GM Must Repay $28 Million to Ohio, Invest $12 Million in Lordstown Area for Closing Plant

Sept. 29, 2020
General Motors also announced it would invest a combined $71 million in two other Ohio plants.

The Ohio Tax Credit Authority announced September 28 that it would terminate tax credits issued to General Motors Co. in following the company’s decision in 2019 to close its Lordstown, Ohio assembly plant.

In 2008, General Motors entered into job creation and job retention tax credit agreements that yielded $60.3 million in tax credits, provided the company created at least 200 new jobs in Lordstown by 2010 and retained 3,700 employees there through 2028.

Since GM closed its Lordstown plant in 2019, though, the Ohio Tax Credit Authority ruled the Detroit-based automaker will be required to re-invest $12 million into the greater Mahoning Valley area and refund $28 million in tax credits to the state of Ohio.

General Motors closed its Lordstown, Ohio assembly plant last year after it caught national attention during the 2016 presidential campaign. The original facility was purchased by Lordstown Motors, an electric truck startup, which unveiled its Endurance pickup in August. GM has announced plans with LG Chem to build a factory nearby to research, develop and build high-density batteries for electric vehicles under the name Ultium Cells LLC.

In a statement, Ohio Governor Mike DeWine praised GM for its history of manufacturing in the state.

“GM has been a major employer in the state of Ohio for decades, investing in both the economy and our workforce. While the decision to close the Lordstown plant was terrible news for workers and their families in the Mahoning Valley, today’s announcement will bring relief as well as investment,” he said. “GM remains involved in auto production in Lordstown to produce batteries for electric vehicles, which is also good news for the future of the automotive industry.”

On the same day as the Ohio Tax Credit Agency’s announcement, General Motors announced it would invest $71 million in two of its other Ohio manufacturing plants, with $39 million going towards its Toledo transmission plant and $32 million for its Defiance casting plant.

“Through these investments, GM continues to strengthen its significant manufacturing presence in Ohio,” said GM VP of North American Manufacturing and Labor Relations Phil Kienle.

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