The badly embattled GM recently sold off its Hummer arm to Tengzhong, a Chinese motor company, and the first thought on everyone’s mind was, what would happen to the jobs in the area? Most thought that Tengzhong would pull Hummer’s operations overseas, or at the very least, out of state.
Well, those autoworkers are breathing a sigh of relief to discover that Tengzhong’s leaving things as is. The state of Michigan dumped fully twenty million dollars in state tax credits over the next ten years into Hummer, and expects Hummer to put in just over nine million dollars of investment into its new headquarters.
This is of course incredibly good news for Detroit, who badly needs any job it can get. Losing more of them would have come as a serious blow, but the cost is positively massive as the state itself is having budget problems of its own. Where they expect to make up such losses is a blank space at best.
Tags: Business, GM, HUMMER, state tax credits, tengzhong
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[...] last month we told you that GM was in talks with Tengzhong to finally sell off the dying HUMMER brand. Well, today, reports have surfaced that say the deal is officially going down for $150 [...]