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Old GM Plants May Be Taken Over By Tesla

General Motors plans to shut down five North American factories; four are in the United States.  Tesla has just announced it may be interested in purchasing these.

Advocates of the free market are cautioning the government to not incentivize Tesla to do this. 

The concern is if Michigan provides subsidies to Tesla, these might just get piled up on top of subsidies already provided General Motors for jobs that are being cut by the company. 

The plant shutting down has had a huge public outcry. 

But despite this, the economy is in a good place.  In Michigan, during the first quarter of this year, the state lost 172,000 jobs but now has gained 215,000.

Michael La Faive, senior director of the Morey Fiscal Policy Initiative at the Michigan-based, free-market Mackinac Center said, “A storyline with Michigan subsidizing Tesla to occupy the factories would also be intriguing and ironic. Because in 2007, Michigan approved a tax credit for Tesla and in 2014, the state passed a law that prevented the company from directly selling to customers in Michigan.”

Many want Michigan to not intervene again and not incentivize yet another company to pick up after GM. 


Ryan Augsburger, vice president of Public Policy Services at the Ohio Manufacturers’Association said, “Government leaders need to continually work to improve a state or country’s economic competitiveness in today’s fiercely competitive global environment.  We believe Ohio’s leaders are focused on the importance of protecting all manufacturing, and especially the transportation manufacturing sectors. We know dialogue has been open between state leaders and affected manufacturing leaders and we remain hopeful.”

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