In September, Ford stunned Michigan when it announced plans to build two massive electric vehicle (EV) plants in the nation’s southeast instead of its midwestern back yard. Fearing the future of the automotive industry was leaving Detroit, the state’s political class swung into action.
Four months later, lawmakers responded by handing a staggering new subsidy deal to GM that they claimed would fortify the Motor City’s standing as the world’s auto capitol during industry electrification: In exchange for $1bn in tax incentives, the Detroit-based automaker promised $7bn in investment for new battery and EV plants that could create 4,000 new jobs.
