General Motors may go bankrupt due to debts

General Motors may go bankrupt due to debts

June 17, 2020 0 By autotimesnews

It is all about tax benefits that the state wants to return.

According to the latest data from ProPublica, the plant in Lordstown no longer belongs to the automotive giant General Motors. The beginning of the proceedings became known back in March of this year, when the Ohio state authorities sent a letter to GM’s leadership demanding reimbursement of $ 60 million in subsidies.

A few years ago, GM and the Ohio state agreed on substantial tax incentives for the automaker in exchange for a factory in Lordstown that would provide local people with work until at least 2027. However, in the spring of 2019, GM stopped production of the Chevrolet Cruze model, which was assembled at the enterprise, literally closing it. Later, the Lordstown Motors website was sold.

It is reported that the authorities have not yet made a final decision on GM, this issue will be discussed at the upcoming meeting of representatives of the two parties, which is scheduled for the second half of July. In the meantime, the auto giant asks the Ohio authorities not to demand a return on investment from it, because this will undermine the company’s economy and ruin it.