http://money.cnn.com/2008/09/25/news...ion=2008092511

okay according to the article GM putting up an almost 400 million dollar plant. yet they got a plant outside Dayton they(General Motors) looking to close in the matter of a year.
also they are closing the factory in Wisconsin. so why the hell put up a new motor plant when you got an old plant. yes you'll have to "re-tool" it and put new machinery in it, but to me why not use what you got instead of letting a old building sit?

 

I guess they think they have excess money to spend.

 

Greater depreciation expense associated with a new plant versus re-tooling an old one.

 

yes you might get a tax credit but you still gotta front the 400 million. and for a company that's cash strapped it's not wise i believe.

 

Good will in Detroit too. Flint has been a fucking battle zone since the plants closed there.

 

Nope....they just got a bunch of cheap $$$ from joe taxpayer.

 

We are paying through the nose to bail out all these companies. Anyone else want a free handout while we're at it?

 

Not only write-off to building a new plant ... but it might also mean more tax breaks from the state taking in those jobs as well as the "lower tier" pay scale by moving the plant far away enough from the old plant so union employees won't try to "bump" people via seniority (ie union employees take the severance package).