Submitted 1 year ago by L4s@lemmy.world [bot] to technology@lemmy.world
Foxconn’s promise to invest $10 billion in Wisconsin is now a distant memory | It’s now selling two mostly empty buildings in the state.::Foxconn is selling two buildings in Wisconsin, which have remained mostly empty since they were originally purchased for its plans to bring production to the US…
At least they aligned with the “con” part of their name 🤪
Thought you meant “conservatives” there.
This is the best summary I could come up with:
When Foxconn announced its plans to open facilities in Wisconsin back in 2017, it promised to invest $10 billion into bringing production to the US that was expected to lead to as many as 13,000 jobs.
Now, the Taiwanese supplier to tech giants like Apple is selling two properties in Eau Claire and Green Bay, purchased for almost $12 million in 2018.
Meanwhile, the portion Foxconn owns in a mixed-use property in Eau Claire has reportedly remained empty for years.
In 2021, however, Foxconn massively altered the scale of the project and told the local government that it would be investing $672 million instead of $10 billion like it intended.
Foxconn didn’t comment on its Eau Claire property, but it told WPR that it “will add to the vibrancy of the city’s downtown.”
Green Bay Mayor Eric Genrich posted on X that he hopes a sale “will lead to better utilization of a fantastic waterfront building.”
The original article contains 329 words, the summary contains 156 words. Saved 53%. I’m a bot and I’m open source!
Wooing Foxconn to set up shop in the US was always a head-scratcher. These are the kinds of jobs Americans were jealous Asians had, and wanted to reshore? Low-margin contract manufacturing? Really?
Actually yes. Though not the business owners really. Instead it was society and strategic planners. It is matter of supply security, not of profit maximization. Which is why incentives and penalties were involved.
Also presumably lacking the cheapest of cheap labor, production automation would be increased. In low cost production countries like China, they don’t always use hordes of cheap labour due to not being able to automate. Rather it is cheaper to use lot of wage slaves operating manual machines, than to pay for the more expensive specialized automated production machinery. Specially on short term. On long term the automated machines probably amortize themselves and then start to make gains over the wage slaving, but well that takes time and one thing quarter report stock market capitalism hates is having to wait for anything. They will take less profits overall over decade, if they can get more profits this quarter or this year.
Is it rational? Well no obviously rational business expecting to be around for decade would take the long term bigger profits. However companies are not managed by rational machines, but instead by these things called CEOs. CEOs, despite their claims, are often anything but rational. CEO’s with personal motives, CEO’s with emotional quirks, CEO’s with inbuilt expectations, CEO’s with in-built assumptions, often wrong assumptions, CEO’s with incentive packages that often are not really that thought through. Stock holders looking to incentivize short time stock gain over long term business profitability.
The latest deal between Foxconn and Wisconsin reduces the planned subsidies for the project, which ultimately could have cost taxpayers over $4 billion.** Foxconn is now eligible for $80 million in tax credits,** down from $2.85 billion. Governor Tony Evers said those credits are in line with those for which any company is eligible. They’re performance-based and will depend on whether Foxconn hits capital investment and employment targets.
Emphasis above is all mine. This is non-news. They talked about what could have been but the subsidy was based on actual invements being made and people being hired.
Foxconn created 1500 jobs (e.g. 10% of what they targeted) and only got 2.8% of the subsidy. Didn’t Michigan win?
Did everyone here forget that covid started in 2020? This article tries to knock on foxconn by suggesting that their “market fluctuations” claim is an excuse… DURING PEAK COVID.
One more fire the Trump win column! /s
Another major victory for the Republican party! Good job everyone!
Geek_King@lemmy.world 1 year ago
I remember arguing with a co-worker about how this deal was pure crap, and even if Foxconn deliveried all the jobs they said they would, it would take 40 years to recoup the cost of the tax breaks. Scott Walker screwed over that area of the state HARD, people had land ceased/forced out, huge costly changes to the infrastructure in that area where the factory was supposed to be.
Surprise surprise, the shitty deal turned out to be a shitty deal.
billy_bollocks@sh.itjust.works 1 year ago
Seized
just_change_it@lemmy.world 1 year ago
How much do you think the taxpayers are on the hook for from the deal? Just curious what you think.