Foxconn May Not Build $10B Wisconsin Plant

[MaxFly]

Announced at a White House ceremony in 2017, the 20-million square foot campus marked the largest greenfield investment by a foreign-based company in U.S. history and was praised by President Donald Trump as proof of his ability to revive American manufacturing.

Foxconn, which received controversial state and local incentives for the project, initially planned to manufacture advanced large screen displays for TVs and other consumer and professional products at the facility, which is under construction. It later said it would build smaller LCD screens instead.

Now, those plans may be scaled back or even shelved, Louis Woo, special assistant to Foxconn Chief Executive Terry Gou, told Reuters. He said the company was still evaluating options for Wisconsin, but cited the steep cost of making advanced TV screens in the United States, where labor expenses are comparatively high...

Rather than manufacturing LCD panels in the United States, Woo said it would be more profitable to make them in greater China and Japan, ship them to Mexico for final assembly, and import the finished product to the United States.


I'm shocked... (https://www.nbcnews.com/business/business-news/foxconn-may-not-build-10b-wisconsin-plant-trump-touted-n964411?cid=public-rss_20190130)


Heavily criticized in some quarters, the Foxconn project was championed by former Wisconsin Governor Scott Walker, a Republican who helped secure around $4 billion in tax breaks and other incentives before leaving office. Critics of the deal, including a number of Democrats, called it a corporate giveaway that would never result in the promised manufacturing jobs and posed serious environmental risks.

[Facepalm]

Can't get a wall built, can't even get a manufacturing plant built. SAD.


Foxconn initially planned to hire roughly 5,200 people by 2020, but it’s reportedly not on track to reach that figure. The company hired just 178 people of its stated goal of 260 hires last year


. “Foxconn has no tax liability in Wisconsin because Republicans have essentially eliminated corporate taxes [for Foxconn]. All of the incentives, they’re not really tax credits, they’re cash payments,” Hintz said. “Not only do we not obtain the revenue, we pay the company.”

Hintz insists that he wasn’t always so down on the project. But once he saw the “realities of the deal” and the political posturing that Foxconn was engaging in, he didn’t want to “throw money at the company.”

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“They located the facility in a swing state for Donald Trump and in Paul Ryan’s home district. Foxconnn all along for them it was, I think, about maintaining favorable trade relationships.”

“The public in Wisconsin has been duped. I think Republicans made a reckless decision. The rationale for Foxconn—it was always worth it for them if they could maintain open markets in the U.S. for what they produce,” said Hintz.

Art of the deal got fleeced. Damn shame.

[highwhey]

is this #Winning? :roll:

[Facepalm]

is this #Winning? :roll:
I'm waiting for all those coal mining jobs to come back any day now....whoops. https://www.bloomberg.com/amp/news/articles/2018-08-21/trump-promised-to-bring-back-coal-it-s-declining-again#referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s

[rufuspaul]

Too bad this sort of thing only happens to Republicans.

https://money.cnn.com/2012/10/22/news/economy/obama-energy-bankruptcies/index.html



President Obama is getting hammered for funding renewable energy companies that have since gone belly up.


The companies -- and what became of taxpayer money -- are as follows:
A123: The battery maker received a $249 million Department of Energy stimulus grant to build two factories in Michigan to manufacture batteries for electric cars.
The company drew down $132 million of that grant, and the factories are up and running, according to the DOE.
As part of A123's bankruptcy announced earlier this week, the factories were sold to Johnson Controls (JCI), which is expected to keep them open. Since the investment was a grant, the government got no money back. It's unclear whether Johnson will be eligible to draw down the remaining grant funds.
Abound Solar: The manufacturer of thin-film solar panels received a $400 million DOE stimulus loan guarantee to build two factories -- one outside Kokomo, Indiana and another outside of Denver.
Abound drew down $70 million of the grant to build the Denver factory. Abound declared bankruptcy in June amid strong competition and the collapsing price of solar panels.
Its assets are being auctioned off, and DOE is expected to lose to $40 to $60 million on the deal.
Beacon Power: The company received a $43 million DOE stimulus loan guarantee to build a facility in upstate New York that uses flywheels to store extra energy from the power grid, and then release it when needed. Such technology is seen as essential to integrate wind and solar into the grid, as those sources don't produce energy 24/7.
The company spent $39 million to build the project, which consists of wheels inside vacuum tubes that can spin at near perpetual motion. Beacon went bankrupt amid low prices for natural gas, which can be burned to produce electricity.
The flywheel plant was sold to a competitor, and DOE is slated to receive at least $27 million in the deal.
Ener1: A subsidiary of the company, EnerDel, received an $118.5 million grant to build two plants outside Indianapolis to manufacture batteries for electric cars and other uses.
Ener1 declared bankruptcy in January, and the company was bought by a Russian investor. The plants in Indianapolis continue to make batteries.
Solyndra: The manufacturer of advanced solar panels received a $535 million loan guarantee to build a factory outside of San Francisco.
Solyndra went bankrupt in 2011 amid falling prices for solar panels, and has since served as the poster child for well-meaning government policy gone bad.
Its assets are being auctioned off, and DOE is not expected to recover any meaningful amount of money.

[Facepalm]

Too bad this sort of thing only happens to Republicans.

https://money.cnn.com/2012/10/22/news/economy/obama-energy-bankruptcies/index.html


Didn't realize bankruptcies were the same thing.
Btw, How are those tax cuts coming along? https://www.pbs.org/newshour/economy/making-sense/did-trumps-tax-cuts-boost-hiring-most-companies-say-no


Did Trump’s tax cuts boost hiring? Most companies say no
By — Gretchen Frazee
Making Sen$e Jan 28, 2019 06:04 PM EST
The vast majority of American businesses haven't boosted hiring or investment as a result of the Republican tax law, according to a survey by the National Association for Business Economics.

Eighty-four percent of businesses said they didn't accelerate hiring because of the 2017 Tax Cuts and Jobs Act, which President Donald Trump hailed as "a bill for the middle class and a bill for jobs." Only 6 percent said they had more hires because of the law

That trickle down economics at work!

[rufuspaul]

Didn't realize bankruptcies were the same thing.
Btw, How are those tax cuts coming along? https://www.pbs.org/newshour/economy/making-sense/did-trumps-tax-cuts-boost-hiring-most-companies-say-no


That trickle down economics at work!


Nice defection. I for one have enjoyed the extra money in my pocket.

I know you're pissed about low unemployment and the stock market regaining steam. Must really make you sad.

[NumberSix]

Not a huge surprise. This is not the first time Foxconn was going to build an American plant and then backed out.

That being said, looks to me like they’re angling for an even bigger tax break.


Question. What would you prefer?

A) Foxconn builds a plant in America, but is allowed to use illegals that they can pay China-level low wages.

B) Foxconn continues to manufacture in China.

Honestly, I’d probably pick A.

[MaxFly]

Not a huge surprise. This is not the first time Foxconn was going to build an American plant and then backed out.


You're right. They've done it numerous times in other countries... approaching them with amazing numbers and asking for an RFP. After hands are shaken, contracts are signed and tax credits begin flowing to them, they slowly pare back their promises of huge factories and large estimates of employed workers and deliver a fraction of what those countries and communities were promised they would get. You know what's funny... before the Wisconsin deal was finalized, Foxconn's methods were clearly laid out by individuals who were wary of their track record and some of the logical and logistical inconsistencies in the Wisconsin deal.


That being said, looks to me like they’re angling for an even bigger tax break.

They have a fiduciary responsibility to get as much out of those communities while putting as little in as possible.


Question. What would you prefer?

A) Foxconn builds a plant in America, but is allowed to use illegals that they can pay China-level low wages.

B) Foxconn continues to manufacture in China.

Honestly, I’d probably pick A.

Neither is ideal, but certainly no company operating in the US would knowingly be allowed to treat and work their employees as poorly as Foxconn treats and works their Chinese employees. We've moved on from the days of Carnegie Steel.

[MaxFly]

I know you're pissed about low unemployment and the stock market regaining steam. Must really make you sad.

I thought we talked about you keeping my markets out your mouth. For real, you're like Konex with you magical jinxing abilities.

[rufuspaul]

I thought we talked about you keeping my markets out your mouth. For real, you're like Konex with you magical jinxing abilities.


:lol

You gotta admit it's been a good month.

[Facepalm]

Nice defection. I for one have enjoyed the extra money in my pocket.

I know you're pissed about low unemployment and the stock market regaining steam. Must really make you sad.
Thanks for proving my point. Honestly glad you are doing well. However, the stock market and extra money in your pocket does nothing for average Americans. You know, the people Trump was trying to sell his tax cut to corporations and the rich too

[rufuspaul]

Thanks for proving my point. Glad you are doing well (honestly). However, the stock market and extra money in your pocket does nothing for average Americans. You know, the people Trump was trying to sell his tax cut to corporations and the rich too

How can you argue with full employment and rising wages? Companies can't hire more people because they honestly can't find them. When unemployment is 4% or lower such is the case.

[Facepalm]

How can you argue with full employment and rising wages? Companies can't hire more people because they honestly can't find them. When unemployment is 4% or lower such is the case.
Not arguing that, my argument is that the economy would still be good without the corporate tax cut.

The middle class needed that cut, not the corporations. They have pretty much admitted they just took the profits with their tax breaks. Meanwhile our debt is exploding and not a peep from fiscal conservatives.

[MaxFly]

:lol

You gotta admit it's been a good month.

Following a pretty lackluster year.

[Jasper]

You have to go back in history of Wisconsin.
Tommy Thompson (governor at the time) as a republican seemed to be helping
Wisconsin's economy , by getting lots of cheap jobs for lower middle class, with lots and lots of companies promoted to COME TO Wisconsin .... land of no tax's for you..
Quite frankly it was NEVER profitable for the people , but great for the companies that got cheap labor and had their offices in Chicago and far beyond.

Democrats came in and said , wait a second , the cheap wage earners are paying some of the highest tax's in the lower 48, so we will tax the companies that got a free ride..... whomf- they pulled their companies out.

So here comes Walker - I have a great deal for Foxconn , I will give my diplomacy to you , Foxconn come , no tax's and I will spread the word that you are helping my state....
fofo - its called lining pockets and screwing the people again,
no wait :" you must not like republicans"
No shLt " Walker said some materials will be made by Wisconsin manufactures ... Wow , cheap labors get to work again , and main office is out of state"
Good deal :facepalm

Governor Ever : " I will tax you "
Foxconn : time to walk.

Great big business(.)
Even at our local level our governments are as stupid as federal goverment(.)

[Hawker]

Didn't realize bankruptcies were the same thing.
Btw, How are those tax cuts coming along? https://www.pbs.org/newshour/economy/making-sense/did-trumps-tax-cuts-boost-hiring-most-companies-say-no


That trickle down economics at work!

How much more would

[Hawker]

Not arguing that, my argument is that the economy would still be good without the corporate tax cut.

The middle class needed that cut, not the corporations. They have pretty much admitted they just took the profits with their tax breaks. Meanwhile our debt is exploding and not a peep from fiscal conservatives.

Cut spending. Record levels of tax revenue coming in. Tax revenue increased from last year. Numbers don

[scuzzy]

sheesh, all Trump's construction buddies that were promised big contracts are getting stiffed hard


not going to bode well for his next campaign

[MaxFly]

Reply All had a podcast episode (https://www.gimletmedia.com/reply-all/132-negative-mount-pleasant) taking a look at Mount Pleasant, the town where the factory is/was to be built, and all the drama leading up to the announcement of the deal as well as some of the repercussions soon thereafter.

[rufuspaul]

Following a pretty lackluster year.

True dat.

[Jasper]

sheesh, all Trump's construction buddies that were promised big contracts are getting stiffed hard


not going to bode well for his next campaign


Dude , he is already out.

[NumberSix]

Not arguing that, my argument is that the economy would still be good without the corporate tax cut.

The middle class needed that cut, not the corporations. They have pretty much admitted they just took the profits with their tax breaks. Meanwhile our debt is exploding and not a peep from fiscal conservatives.
How would you even know? I strongly doubt that you spend much of your time listening to conservative conversations.

Tax revenue went UP after the tax cut. The government doesn’t have a revenue problem. The government collects more than enough taxes. Literally trillions of dollars. The government’s problem is that they spend an obscene amount of money. You could literally cut half of the budget and barely anybody would even notice.

[bladefd]

Republicans trying to blame new Democrat governor for Foxconn pulling out lol..


The first shot was fired by GOP Rep. Sean Duffy of Wisconsin during an appearance on a Fox Business Network show hosted by Maria Bartiromo.

“Foxconn is under attack in our state because of our new governor,” Duffy declared.

“Wow, so you blame the new governor?” an apparently taken-aback Bartiromo replied.

Indeed, Duffy did. He stressed that Foxconn had not yet abandoned the project in Mt. Pleasant, Wisconsin, that received $4 billion in tax breaks secured by former Gov. Scott Walker, a Republican, and was touted by President Donald Trump as a manufacturing jobmaker.

“So again, this is still up in the air for us but if you are Foxconn, you have to consider the politics of our state and what’s changed in the last, you know, two months,” Duffy said.

Bartiromo questioned Duffy about Foxconn a day after a top company official pulled the rug out from under Trump and Walker by announcing to Reuters that it is rethinking plans for the factory employing 13,000 blue-collar workers. Instead, the company intends to hire mostly engineers and researchers in Wisconsin — and build advanced TV screens elsewhere — because it considers American labor too expensive.

“They haven't necessarily pulled out, but they’ve signaled that they will on the manufacturing side,” Duffy said of Foxconn. “They bought buildings. They have land to build their facilities, but what’s happened in Wisconsin, why is this decision made? Scott Walker lost. The guy that won, Tony Evers in Wisconsin, was bashing this deal from very beginning, so now you have an unfriendly government in Wisconsin who doesn't want Foxconn there.”

www.nbcnews.com/news/us-news/wisconsin-republicans-who-touted-foxconn-try-blame-democratic-governor-debacle-n965556

Goes on to say that the deal died because Evers tried to renegotiate it. Evers denied the claim that he tried to renegotiate the deal.. No evidence for that claim..

:biggums:


The new governor, like many Wisconsin Democrats, did indeed criticize the Foxconn project as a giveaway to a company that has a history of reneging on deals and as a political stunt by Walker to help him get reelected. Walker wound up losing to Evers.

But Evers spokeswoman Melissa Baldauff denied the governor made any attempt to amend the Foxconn deal.

“Claims made today that Gov. Evers has tried to renegotiate the Foxconn contract are false,” she said. “It is unfortunate that Republicans would rather try to make headlines with political finger-pointing than work with the governor to protect Wisconsin taxpayers.”

Mark Hogan, secretary and CEO of the Wisconsin Economic Development Corp., backed Evers.

[Jasper]

Watching Here and Now on PBS , they stated that Walker was well aware that Foxconn was not going to build screens , and that the 13,000 jobs was a farce.

Wisconsin has diverted 125 million bucks from DOT for roads for Foxconn , and
according to the speaker , Wisconsin has already invested in 1+ billion bucks on this company.....

THey stated it's on Evers watch , so some fact similarly company will be done , but not the 13,000 jobs processed by Walkers diversion ...