Michigan’s Ford Motor Company Subsidy

From the BBC via CrooksAndLiars.com, it turns out that the state of Michigan is throwing some pretty serious cash at Ford:

BBC NEWS | Business | Michigan secures Ford investment

US state Michigan has agreed to give Ford Motor $300m (£155m) to keep open six of its factories in the state.

The move, which amounts to subsidies of about $23,000 per worker, could help safeguard 13,000 jobs in the state.

In return, Ford has vowed to invest $866m to upgrade the ancient equipment in the plants.

The firm had threatened to go to other neighbouring states, such as Minnesota and Indiana, which had also been prepared to offer subsidies.

Did anyone in Michigan notice that Ford is planning on closing plants in Minnesota? Why not just call Ford’s bluff on this one?

Or, thinking a bit longer term, why not help Ford invest in building cars people want to buy rather than helping Ford crank out cars that have a hard time competing against more efficient models built by foreign competitors?

One thought on “Michigan’s Ford Motor Company Subsidy”

  1. Well, until the condo bust of 06-07, that riverside plant was beginning to be work more as a real estate development…but maybe now it again retains more value (albeit short-term until the real estate market improves in 5 years) as a manufacturing plant.

    Given Ford and GM’s complete lack of vision though, I would say any gov’t subsidies are just ‘good money chasing bad’, a gap-filling, slow-the freefall of Ford attempt to slow the massive unemployment that looms. A better idea would be to let Ford / GM go away and find a company with a visionary transportation idea to take over that place.

    Oops, my mistake, I keep forgetting how short-sighted politicians think and right now all they think about is how much money Ford / GM give their (both) parties to keep them from changing things in a progressive visionary manner.

    So, since Toyota and Honda are the only car companies using their heads, America should just accept yet another defeat and buy their cars.

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