Latest example of Gov. Whitmer’s flawed strategy to transition Michigan to EVs, using billions in state subsidies
By Victor Skinner
A Michigan electric vehicle battery company that pocketed $900,000 from taxpayers six years ago will keep the cash without penalty as it moves production and 188 jobs to South Carolina. It’s the latest example of Gov. Gretchen Whitmer’s flawed attempt to force Michigan residents into transitioning from internal combustion engine vehicles to electric-battery operated cars and trucks in which billions of taxpayer dollars have been used to subsidize a nascent industry. Akasol. Inc., a subsidiary of BorgWarner, will lay off a total of 188 workers when it closes two separate plants in Hazel Park and Warren on April 14, to shift production of lithium-ion batteries south to enable the company to “grow above market,” the company said in a statement to the Detroit Free Press.
“Consistent with those efforts, we have decided to shift all battery production from our Hazel Park and Warren, Michigan, locations to our existing plant in Seneca, South Carolina,” the statement read. “We believe in our battery product portfolio and the opportunity for continued growth as customers increasingly require innovative e-mobility solutions.”
Akasol was approved in 2019 for a $2.24 million Michigan Business Development Program grant to build a $40 million manufacturing facility and create 224 jobs, but the taxpayer funding was later amended to $900,000 when the plan was scaled down to 90 jobs, MLive reports. Akasol fulfilled its agreement by maintaining the 90 jobs through 2023, which means the company can keep the incentives while it abandons its Michigan operations. Company officials refused to discuss whether it will offer jobs to the Michigan workers in plans to lay off.
Read the full article at The Midwesterner
