Tenn. governor says GM wants large upfront payment

[Old Coot]

Tennessean/Associated Press

Gov. Phil Bredesen on Thursday expressed doubt about whether Tennessee can afford the financial demands from General Motors Corp. to select its Spring Hill plant to build a new small car.

The Democratic governor said it became clear in meetings with GM officials this week that the bankrupt automaker wants a large cash payment from Tennessee to pick Spring Hill over Orion, Mich., or Janesville, Wis.

Tennessee's incentive packages are usually heavy on long-term tax credits, training and infrastructure improvements. Bredesen said the state doesn't have "a lot of spare money available to make large upfront payments."

The governor wouldn't specify how much money GM was asking for, but said that hundreds of millions of dollars would be "the low end of the range."

http://www.tennessean.com/article/20090611/NEWS02/90611079/Bredesen+doubts+state+can+afford+to+keep+Spring+Hill+plant+