In a few short weeks, General Motors is expected to finalize the
whoring out sale of HUMMER LLC to China-based Sichuan Tengzhong Heavy Industrial Machinery Co. If the deal receives the required approval from the Chinese regulatory commission, Sichuan has earmarked $9.4 million to fund the construction of a new U.S. headquarters to be built in either Detroit or the Detroit suburb of Auburn Hills. When the final location is selected and the facility is opened for business, the Michigan Economic Growth Authority estimates it will create some 300 jobs for the community and in return for the anticipated economic stimulation, Michigan is preparing to greet Sichuan with the mother of all welcome wagons.
Although an official decision has yet to be made, Michigan board members have confirmed that they are very seriously considering issuing a hefty tax credit for Hummer’s new HQ. If approved, the credit would pay Sichuan $20.6 million over the next 10 years and considerably reduce the staggering costs Sichuan will incur while equipping Detroit employees with the necessary assault weapons.
UPDATE 9/22/09 2:42PM: The Michigan Economic Growth Authority has approved the $20.6 million tax credit.