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Couple of points. Governments regularly dole out tax and other equivalent subsidies all the time to businesses. From these bail outs, to funding stadiums, to g
by Shivetya 8y ago
Couple of points.
Governments regularly dole out tax and other equivalent subsidies all the time to businesses. From these bail outs, to funding stadiums, to getting new jobs or headquarters.
This is all comes with risk and the risk should entirely be on the government making the deals. If they are making bad deals then hold them accountable. Part of this is making sure that all other taxation and such does not eventually price manufacturers out of your region.
With regards to the auto industry, the key word is industry. It is spread across multiple countries which means all must be taken into account when it comes to where vehicles are produced. This gets more important as the industry shifts the types of vehicles being made.
EV production will lead to the largest number of plant closures in the history of automotive production. The drive train savings alone in complexity will remove the need for engine and transmission plants as well as many plants which make the supporting hardware like pumps and more. The cascade effect on repair and maintenance shops will be even more hard felt.
edit: https://www.reuters.com/article/us-gm-restructuring/gm-to-cut-car-production-in-north-america-halt-some-models-source-idUSKCN1NV1NB https://www.reuters.com/article/us-gm-restructuring/gm-to-cu...
Appears they are dropping three plants and a few cars