GM collected $17 million from Tennessee for jobs, then left

Report shows Nov 2008 GM took $17M in grants from Tennessee to develop jobs and train workers at the Spring Hill plant. Less than 1 year later GM moved those jobs out of state.


'Tennessean' Watchdog Report

As General Motors teetered on the brink of collapse nearly three years ago, it was able to tap an unexpected source of cash: the state of Tennessee.

The automotive giant received nearly $17 million — most of it in the week after executives disclosed the cash crisis that ultimately led to a federal bailout. The grants made GM the biggest single recipient of cash for job training from the Tennessee Department of Economic and Community Development, a database obtained by The Tennessean shows.

Part of the FastTrack incentive package that helped Tennessee bring production of the Chevy Traverse to GM’s Spring Hill plant, the grants were meant to train thousands of new workers who would hold down high-paying jobs for decades. But most of those jobs are no longer in Tennessee, as GM shifted production of the Traverse to Lansing, Mich., in 2009.

The outcome of the Traverse project in Spring Hill points out that there are few certainties behind the state’s efforts to spark economic development through incentive programs. While the announcement of investments generates optimism and headlines, downturns in the economy, business decisions and other factors can later sap projects of the touted benefits.

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http://www.tennessean.com/article/20110731/NEWS0201/307310092/2275/...