Back in 2009, OEM supplier Caparo Vehicle Components pledged to put $10.5 million back into its two plants in Novi, Michigan. That move was so warmly received by the state of Michigan that the company was awarded $1 million in tax credits over five years. The company got its credits in 2010, reports The Detroit News, and may have collected a credit in 2011, as well, although the Michigan Economic Development Corporation reports the proper paperwork was not filed with the state. Caparo had been trying to sell the company when a buyer backed out, forcing this latest move.
Just two years in, instead of securing nearly 400 jobs, the move by Caparo to permanently cease operations in Michigan will hit 270 workers. Caparo makes components like stampings and welded assemblies for automakers and suppliers. In addition to the closing plants in Novi, Caparo also has a much smaller operation in San Luis Potosi, Mexico, and while the MEDC is saying the tax credit didn't cost Michigan any money, there are still going to be workers out of jobs. Even so, Caparo will reportedly not be liable to repay the value of the credits.

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    • 1 Second Ago
      The Other Bob
      • 3 Years Ago
      "Even so, Caparo will reportedly not be liable to repay the value of the credits. " These are not refundable credits. If they did not have tax liability and create the job, there would be no credit, therefore there is nothing to repay. With the jobs going away, the credits will go away.
      • 3 Years Ago
      Somehow, in some way, it is probably Obama's fault....
        • 3 Years Ago
        Hey, you took Obamas excuse from Obama (everything is Bush's fault)
      • 2 Years Ago
      What is really frustrating is that we have contacted the state of MI asking if they could direct these laid off workers our way because we are looking for tool & die makers, production workers etc. MI said, "No Way are we going to tell MI workers about IA jobs, we'd rather pay unemployment and keep people in our state vs help them find jobs and have them move to a tool & die shop in Dubuque, IA" Unbelievable!
      • 3 Years Ago
      Someone needs to explain the word "credit" to Dan Roth. You don't "collect" tax credits. It's a tax waiver, not a check.
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