Tennessee taxpayers pay millions to GM after increased lobbying

Posted on January 26, 2012
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By Christopher Butler | Tennessee Watchdog

NASHVILLE – General Motors has billions of dollars in cash reserves, and one would think that the company is self-sufficient and can operate without a helping hand from taxpayers — but that is not the case, especially in Tennessee.

Taxpayers in the Volunteer State, as well as those in many other states, are giving millions of dollars to subsidize GM’s operations, all as a result of the company’s increased lobbying efforts at the state level.

Last month, for instance, officials with the Tennessee Department of Economic and Community Development (ECD) announced that state taxpayers would pay GM more than $1 million to help the company expand its production plant in Spring Hill.

GM officials admitted to Tennessee Watchdog that their aggressive lobbying efforts have paid off handsomely in Tennessee and elsewhere. They said they are now expanding their lobbying efforts, from Washington, D.C. to the states.

“We are increasing our activity with the states obviously, in the communities in which we operate. In doing this, we’ve invested more than $6 billion (throughout the states) during the last five years and brought 15,000 people back to work. So, the activity at the state level is important to us. Our lobbying is comparable to what our competitors are doing throughout the states,” said GM spokesman Greg Martin.

GM has already accepted a $50 billion bailout from the federal government (with the federal government taking a 61 percent share in the company), also as a result of lobbying. GM officials told Tennessee Watchdog that their lobbying efforts at the federal level will remain just as active as they are at the state level.

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