General Motors Archives

Missouri Senate deadlocks on governor’s General Motors bill

May 14, 2019 By Alisa Nelson

The state Senate went into total stall mode Monday afternoon to block an incentives package for General Motors from making it to the floor. During this final week of the legislative session, the delay tactics have sidelined many other bills awaiting action.

Governor Mike Parson addresses firefighters during the Missouri State Firefighters Day in Jefferson City on March 6, 2019 (file photo by Bill Greenblatt/UPI}

Members of Governor Mike Parson’s own party who live near the GM plant in Wentzville do not see eye to eye with him about legislation aimed at a potential expansion there. The six-member Conservative Caucus led the way with Sen. Bill Eigel, R-Weldon Spring, encouraging his fellow Republicans to find compromise on the $50 million tax credit bill. He’s not crazy about providing tax credits earlier in a business expansion and financial aid for people pursuing high demand jobs.

“In conversations directly with General Motors, in conversations that some of my colleagues have had, that neither of those provisions are necessary for us to put our best foot forward when it comes to the possible expansion in Wentzville. I want to make sure that we’re not passing anything that I philosophically have a lot of problems with that aren’t actually required to get this through,” says Eigel.

During floor debate, Lake St. Louis Sen. Bob Onder says he would support $50 million in tax credits, but not the other two components. Senate President Dave Schatz, R-Sullivan, says GM wants the whole package – not just the $50 million. Onder does not buy Schatz’s remark. He says he talked to local officials in the Wentzville area.

State Senator Bob Onder

“They told me that it’s not as black and white as the governor has been making it. The governor has been making it sound like the GM deal doesn’t happen unless his whole Christmas tree package is approved,” says Onder. “It’s clear that that’s not the case.”

Sen. Eric Burlison, R-Springfield, questions what GM has a problem with.

“I’m still kind of waiting to hear what is the hang-up,” asks Burlison. “If we are at a place where we have a bill that meets the needs of General Motors and the outlier issues are the issues that have controversy and have had controversy for months, then what is it that we really care about? Do we really care about getting this issue resolved, getting this bill done for GM? Is that the real care? Or, it makes you wonder has the real desire all along been these outlier issues? Maybe the tail is wagging the dog – I don’t know.”

The Conservative Caucus had a glimmer of hope when the Missouri House took the unprecedented move of passing a scaled-down version of the package with $50 million in tax credits. Missouri Senate Republican leadership didn’t budge and refused to accept the alternative bill – sending the chamber back into a standoff.

The Conservative Caucus does not appear to be growing tired.

Missouri Senate President Pro Tem Dave Schatz (R-Sullivan) speaks to Capitol reporters on February 21, 2019 (photo courtesy of Senate Communications)

“We’re not in a place yet where we can say that there’s a path forward but we’re taking a look at that,” says Eigel. “It’s kind of a take it or leave it choice right now and right now we’re leaving it.”

Senate Democrats are sitting back and watching Republicans squabble in hopes of other controversial measures not passing.

Under the Missouri Constitution, the Legislature must adjourn its regular session by 6 p.m. on Friday.

Missouri House hits the gas on incentives plan for GM expansion

May 10, 2019 By Alisa Nelson

In roughly 3.5 hours, the Missouri House passed Thursday night a proposed incentives package geared toward landing a possible $1 billion expansion at GM’s plant in Wentzville. The chamber voted 92-51 in favor of the plan, with a few Republicans from the St. Louis region voting against the measure.

Reps. Tony Lovasco, R-O’Fallon, Justin Hill, R-Lake St. Louis, and Phil Christofanelli, R-St.Peters, voted against the bill. All of them represent St. Charles County and have districts near the plant.

Missouri House (Photo courtesy of Tim Bommel, House Communications)

The package would give $5 million per year in tax credits over 10 years to carmakers that invest at least $750 million in plant upgrades and would provide tax credits earlier in a business expansion. It would also provide financial aid for people seeking high demand fields and workforce training improvements for major expansions.

The General Motors factory, which opened in 1983, has about 4,600 workers. The average annual salary of employees at the plant is about $81,000.

According to documents provided by the Governor’s Office, the upgrades to the factory would not immediately create new jobs but would ensure that production remains in Wentzville long term. The documents also say GM has 178 suppliers throughout Missouri with the broader economic impact of the current site supporting more than 12,200 jobs statewide.

The district of Rep. Tony Lovasco, R-O’Fallon, is adjacent to the plant. He called the entire GM process “incredibly frustrating”.

State Rep. Dean Plocher (right) on the Missouri House floor in January 2017 (photo courtesy of Tim Bommel at House Communications)

“We are not only expected to vote on something last minute with little input, but in a lot of cases with little knowledge of what was even being negotiated. This was dropped very late. So that bothers me on principle,” Lovasco said. “We have lots of big employers in this state. Why would any of them not come to us next session and ask us for a package? This is big companies that have lobbyists coming to us with the threat of destroying a bunch of jobs if they don’t get freebies from us.”

Rep. Dean Plocher, R-Des Peres, said the bill would encourage Missouri’s economic growth.

“The Ford plant closed. The Chrysler plant is closed,” he said. “This is an opportunity to increase a company’s presence in a community that has grown exponentially in the last 19 years.”

Wentzville is one of Missouri’s fastest-growing cities. Its current population is about 40,000. The city’s website says the city’s population skyrocketed from 6,896 in 2000 to 29,070 in the 2010 census.

An amendment from House Minority Leader Crystal Quade, D-Springfield, would have tied incentives given to the promise of maintaining 100% of the current workforce. Rep. Rachel Proudie, D-Ferguson, supported Quade’s amendment.

Rep. Nick Schroer, R-O’Fallon (Photo courtesy of Tim Bommel, House Communications)

“We’ve done a lot of quid pro quo in this body,” Proudie said. “I don’t trust anybody to give away $50 million. I want $50 million of Missouri’s money to stay in Missouri.”

Debate grew tense at times between bill sponsor, Rep. Nick Schroer, R-O’Fallon, and fellow Republican Justin Hill of Lake St. Louis. Hill agreed with Quade’s approach.

“Do you like this amendment seeing that it’s pretty conservative,” asked Hill.

“No, it’s very poorly-worded and I’m amazed that you would read this and think that this is conservative. It’s unrealistic,” says Schroer.

“Is it not conservative to put accountability measures on this so that they (GM) have to give us jobs for this $50 million handout,” asked Hill.

“There are accountability measures in here,” said Schroer. “The agency must promulgate rules on retention. We want the retention of jobs.”

“What’s wrong with putting it in statute,” asked Hill. “It’s our job to make sure our people’s money doesn’t get wasted.”

Schroer called it a poison pill amendment and said the state is not writing a $50 million check.

“Keep in mind this is not only about GM, this is about the hard-working people of Missouri – not only keeping their jobs but bringing more jobs here, making sure that we don’t have to ship off our citizens to California or waste other opportunities because we have to ship people off to other states that have good workforce development programs on these new technologies like Amazon has in St. Peters,” he said.

Quade’s amendment was ultimately voted down.

Another amendment from Rep. Dirk Deaton, R-Noel, would have banned legal permanent residents from acquiring benefits from the program. He said the state should be too restrictive.

Rep. David Wood, R-Versailles, pointed out Missouri’s two military bases with large numbers of soldiers serving overseas who could return with spouses from outside of the U.S.

“They’re just as American as you and I when they chose to marry that spouse and move to this country,” said Wood. “Our system precludes them from becoming a U.S. citizen immediately. So why are we punishing them for the three, five years, or whatever it takes to get that U.S. citizenship from a program that could benefit them or benefit the state?”

“Perhaps we should work together to change the immigration law,” asked Deaton.

“I don’t think we have the ability to change immigration law,” said Wood.

“I agree with you on that,” said Deaton.

Likely in an effort to contain his anger, Rep. Kip Kendrick, D-Columbia, kept his testimony short. With a raised voiced, he called Deaton’s proposed provision mean-spirited and a “garbage amendment”.

Deaton later withdrew the amendment.

The measure heads to the Missouri Senate for consideration. The Legislature’s regular session ends next Friday.

Missouri unveils incentives plan to attract major GM expansion

May 8, 2019 By Alisa Nelson

The General Motors plant in Wentzville has about 4,600 employees, according to GM’s website (photo courtesy of GM website)

Governor Mike Parson, a Republican, has announced a proposed incentives package aimed at growing Missouri’s automotive industry, including a potential $1 billion expansion at GM’s plant in Wentzville. Elected officials have been working for the past few days on putting together the plan that includes:

• Missouri Works – Deal Closing Fund: Gives Missouri a negotiating tool to close deals with companies by granting tax credits earlier in a business expansion, and includes a clause requiring credits to be repaid if certain conditions are not met
• Automotive Economic Development Tools: Helps retain automotive jobs by granting $5 million in tax credits annually to automotive manufacturers that invest $500 million or more in plant upgrades and agree to retain current workers
• Missouri Fast Track: Fills workforce gaps through financial aid for adult learners pursuing education and training in high demand industries
• Missouri One Start: Improves Missouri’s workforce programs that help businesses recruit, onboard, and train large numbers of job applicants during major expansions

Last week, Senate President Dave Schatz, R-Sullivan, said additional road improvements in the Wentzville region are expected to be a part of the plan.

“Specifically, to traffic issues that revolve around Wentzville. So, there will be some of the cost share funds that are in the current budget right now that could be utilized to address some of those issues,” says Schatz.

The press release from the governor’s office did not mention the infrastructure improvements.

The GM plant, which opened in 1983, was outfitted so it can produce both vans and mid-size trucks on a single line. The union factory also has an on-site stamping facility that produces most of the parts used in production of the Chevy Express and GMC Savana vans. According to GM’s website, the General Motors plant in Wentzville has about 4,600 workers.

The Missouri Legislature will have to fast track the plan. The last day of the regular session is next Friday. Republican leadership in both chambers is confident the package will make it to the governor’s desk by the end of the session.

Sen. McCaskill says GM legal team’s actions ‘killed innocent customers’

July 18, 2014 By Mike Lear

Senator Claire McCaskill (D) has gone after General Motors’ legal team for its handling of reports of ignition switch problems on vehicles including the Chevrolet Cobalt, now linked to 13 fatal crashes including one in Missouri.

Senator Claire McCaskill (D) chairs a hearing by a Senate subcommittee on consumer protection.

GM’s legal staff dealt with lawsuits stemming from those failures for years while engineers and investigators were aware of safety concerns. McCaskill says those attorneys allowed a dangerous situation to continue, and asked why GM’s General Counsel Michael Millikin had not been fired.

“It is very clear that the culture of lawyering up and whack-a-mole to minimize liability in individual lawsuits killed innocent customers of General Motors,” says McCaskill in a hearing of the subcommittee on consumer protection, which she chairs.

GM CEO Mary Barra defends her general counsel.

“Senator McCaskill, I respectfully disagree,” says Barra. “I have made the promise to fix what happened in the company to make sure that we are dedicated to safety, that we’re dedicated to excellence … to do that I need the right team. Mike Millikin is a man of incredibly high integrity.”

McCaskill told Barra, “I think the failure of this legal department is stunning. You look around government. When something like this happens … you know what? [Former Veterans Administration Secretary Eric] Shinseki didn’t know about those problems with [veterans scheduling appointments at VA hospitals]. Nobody told him. He’s gone.”

More hearings involving GM officials are anticipated.

A fund set up by General Motors for restitution for victims of GM ignition switch failures and their families will begin processing claims August 1.