© The Rooster Crows March 11 2023
Billions handed out to foreign EV companies while Americans Suffer. This time a German company planting its feet in South Carolina.
Scout Motors is a subsidiary of the German multinational automotive manufacturer headquartered in Wolfsburg, Lower Saxony, Germany who had a net income of $15.4 Billion in 2021. The brand Scout will be produced in South Carolina at the cost of all citizens but especially those living in the State and County giving Scout a $1.3 Billion package plus added benefits.
In order to attract a foreign owned $2 billion electric vehicle plant to Blythewood, South Carolina agreed spend $1.3 billion. The Scout Motors also will be given $400 million for site construction as a part of the $1.3 billion package. The deal even includes $16 Million in property acquisition (eminent domain) to connect to the railroad.
The state incentives come on top of:
- property tax break and other incentives offered by Richland County. (The company’s property would be assessed at a tax rate of 4%. Per the state Department of Revenue, manufacturing property in South Carolina is typically assessed at rates up to 10.5%. )
- The county incentives also include stipends for employees’ child care,
- The company also will be able get a further 50% tax break through making investments in infrastructure, a setup known as an infrastructure tax credit.
- Receive job development credits, which are awarded for the amount of investment the company will carry out and number of jobs it creates.
During the Obama administration, federal subsidies were being launched to promote electric vehicle expansion. Today, grant and loan programs are in place to promote manufacturing from state and federal programs to expand the availability of charging stations. Individuals can also get a $7,500 tax credit for purchasing a new electric vehicle or a $4,000 credit for a used one with more than $12, 000 credit for EVs made with Union workers.
Federal subsidies for electric vehicles increased to more than $750 Million in 2014. The Obama administration alone pledged $2.4 billion dollars in grants to support the manufacturing and development of electric cars and batteries. In 2021, government approved about US$2 billion in incentives. Michigan passed a US$1.5 billion bill in December 2021 that expanded state incentives, including for EV production.
Since 2002 the EV pioneer Tesla has received the most subsidies at US$2.5 billion. As of Feb 2022:
- Ford was next highest at US$1.5 billion, followed by
- GM at $1.1 billion.
- Fourth on the list is the start-up electric truck company Rivian, which is now set to received more than US$400 million from Georgia to build a new plant in the southern state…. As of Feb 2022.
As the top business owners such as Jeff Bezos, Elon Musk, and Ken Griffin warn of a coming recession in 2023 and layoffs become noticable by Tesla, General Motors, Walmart, and Goldman Sachs, our government Spends our money on the luxury ride of the rich.
Rooster Crows 