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Noodle

Banned
Aug 22, 2018
3,427
The project's awkward limbo phase has been political as well. Walker lost the gubernatorial election to Democrat Tony Evers, who criticized the deal during the campaign but stopped short of saying he'd scrap it, instead promising to hold Foxconn accountable.

But before leaving office, Walker undermined Evers' power over the project by signing a bill that moved the Foxconn liaison out of the governor's administration and into the state's economic development corporation, WEDC, and prevented Evers from appointing a new WEDC CEO until September.

GOP managed to insert themselves into the fuckery.
 

FeliciaFelix

Member
Oct 27, 2017
1,778
I wish the village president at least got a bribe out of it, but I bet the fucker did it for a photo OP with Trump and maybe a MAGA hat.
 

Wraith

Member
Jun 28, 2018
8,892
The Foxconn factory in Wisconsin will only create 1,500 jobs when it starts production next May, Gov. Tony Evers told CNBC yesterday. That's the same number Foxconn has been saying since it shifted plans for the factory a few months ago, and far short of the 13,000 jobs that were promised when President Trump broke ground a year ago. Evers has been negotiating with Foxconn since he replaced former Wisconsin governor Scott Walker, and he says he now has "clarity" on Foxconn's plans.
While Foxconn initially disputed The Verge's reports of the buildings being empty, it has now been 89 days since the company promised a statement or correction regarding the plans for the innovation centers.
 

Rebel1

Member
Oct 25, 2017
3,234
tumblr_m7v194vjCY1qkwym7.gif
 

Odrion

Banned
Oct 27, 2017
1,148
No one in this picture should escape this embarrassment.

29dcTrump-sub-articleLarge.jpg


Now we'll see if the media and Dems do their jobs correctly. If Republicans can still trot out the Solyndra "scandal" for ammunition against green energy and Obama, then I think Dems can be smart enough to use this in many many ways.
you are living in a fantasy world buddy
 

Christian

Member
Oct 25, 2017
9,636
LOL, where's that one guy that said they would eventually fulfill the 13,000 job promise and no way they'd let set a huge and modern campus sit mostly empty?
 

DJ_Lae

Member
Oct 27, 2017
6,870
Edmonton
There's no way they would have (or could have) created the original 13,000 jobs.

$4.5 billion well spent. And I don't even know if that's including future incentives/tax breaks.
 

Wraith

Member
Jun 28, 2018
8,892
LOL, where's that one guy that said they would eventually fulfill the 13,000 job promise and no way they'd let set a huge and modern campus sit mostly empty?
I assume the Walker/Foxconn defense force's spin is: "Well now that a pro-tax anti-job Democrat got elected, it obviously makes no sense to try build that factory there! We're lucky they're even willing to bring 1500 jobs into this socialist hellscape," etc. (Because obviously a multinational corporation makes multi-billion dollar investments that can be totally upended every 2-4 years based on local election results.)
 

AaronD

Member
Dec 1, 2017
3,261
They'll end up creating around 350 jobs. They're building an accessory plant that will be mostly automated. I think in the article they mention the parking lot is for 500 cars. Wisconsin is for suckers.
 

Wraith

Member
Jun 28, 2018
8,892
The report, which was conducted by Tim Bartik of the Upjohn Institute for Employment Research, finds that the smaller facility raises the already unusually high cost per job even further. If the subsidy levels in the current contract are kept, each Foxconn job would cost taxpayers about $290,000, Bartik found, compared to $172,000 if Foxconn built the original $10 billion, 13,000-job facility. For comparison, Bartik estimated the subsidies Virginia offered Amazon for its second headquarters amounted to between $10,000 and $13,000 per job.

"The most important conclusion of this analysis is that it is difficult to come up with plausible assumptions under which a revised Foxconn incentive contract, which offers similar credit rates to the original contract, has benefits exceeding costs," Bartik wrote. "The incentives are so costly per job that it is hard to see how likely benefits will offset these costs."
 

DrROBschiz

Member
Oct 25, 2017
16,494
Dear Municipalities of the United States

STOP CUTTING SWEETHEART DEALS WITH CORPORATE ENTITIES

Fucking tell them to go dodge taxes like everyone else
 

Wraith

Member
Jun 28, 2018
8,892
A pretty long article on how local homeowners have been affected by the Foxconn project, including those who fought/are fighting eminent domain threats.

Property Bought — Then They Sued

The Jensens received a series of letters from the village seeking to buy their property. They ignored them, Cathy Jensen said, "so they assumed we agreed" to the sale.

Around April 2018, "We got a letter basically saying that they own our house now," Cathy Jensen said. "We own your house and we'll be very, you know, very generous and let you stay there rent-free until September 2019."

The Jensens are still living there. According to village documents, $569,300 is sitting in a bank account for the Jensens, but they do not plan to touch it. Doing so, they say, means giving up.

Instead, they have filed two lawsuits, one in federal court and one in Racine County Circuit Court. The Jensens argue they were offered far less than other property owners.

They also argue the village has no right to take the property to benefit a private business — Foxconn — or to take more than the .133 acres cited in the relocation order, according to a motion that seeks to consolidate the two cases in federal court.
Analyst Alberto Moel, who until recently covered the Asian flat panel display industry from Hong Kong for a research firm, Sanford C. Bernstein, said Foxconn has a pattern of delivering just a fraction of what it promises. He noted a proposed $1 billion manufacturing plant in Indonesia and a $30 million plant in Harrisburg, Pennsylvania, never materialized.

"But I don't think they went as far as physically changing the landscape," Moel said of the aborted projects. The Mount Pleasant project, he said, "obviously went to a further extent."

...

Moel, who wrote a 149-page research paper on Foxconn for investors in 2012, describes the company as secretive and a "black box."

He believes the Wisconsin project is a "snow job."
 
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Dyle

One Winged Slayer
The Fallen
Oct 25, 2017
29,945
It's very sad, I'll never understand why the local government put up with any of this, the benefits simply were never going to be there. And of course as this all falls apart all of the Walker appointees are leaving WEDC and kicking the can down the road
 

Wraith

Member
Jun 28, 2018
8,892
Documents obtained by The Verge show that Wisconsin officials have repeatedly — and with growing urgency — warned Foxconn that its current project has veered far from what was described in the original deal and that the contract must be amended if the company is to receive subsidies. Foxconn, however, has declined to amend the contract, and it indicated that it nevertheless intends to apply for tax credits.
The documents show it was Foxconn that first proposed amending the contract in a meeting on March 11th, 2019. Over the following months, various officials from the Wisconsin Economic Development Corporation (WEDC) and Gov. Tony Evers' administration urged Foxconn to formally apply to revise its contract to reflect whatever it is actually building, a process that would involve describing Foxconn's current plans, its expected costs, employment, and other basic details.

Foxconn never did.

Instead, a Foxconn representative wrote a brief letter asking the then-CEO of WEDC to make the current factory eligible for subsidies under the original contract. The company later claimed it has a right to apply for subsidies no matter what it builds in Wisconsin. Negotiations appear to have completely broken down in late November, after Foxconn director of US strategic initiatives Alan Yeung accused the Evers administration of being unfriendly to business, and saying that "discussions regarding immaterial matters are a misappropriation of our collective time and energy."
 

jeelybeans

Member
Oct 25, 2017
6,948
I hope Wisconsin voters remember this but I fear we'll be seeing another "blue wall collapse" in 2020.
 

Geist 6one7

Member
Oct 29, 2017
4,381
MASS
Imagine thinking someone would build an electronics factory in 2019 and not have robots putting the stuff together. Hopefully the citizens of WI remember this come next November.
 
OP
OP
Slayven

Slayven

Never read a comic in his life
Moderator
Oct 25, 2017
93,156
Imagine thinking someone would build an electronics factory in 2019 and not have robots putting the stuff together. Hopefully the citizens of WI remember this come next November.
I mean at this point it looks like not even the building is getting built let along bots installed
 

Sho_Nuff82

Member
Nov 14, 2017
18,441

"We were told that this was a work, not actual, ya know, work."

It's amazing how brazen this is. The initial announcement was done only to fluff the resumes of Walker and Trump. Foxconn had no intention of bringing 13000 jobs, but as long as the state was under GOP control no one would press too hard. Now that the local government has changed, they are whining about the inconvenience of having to have tangible results. I hope the state and the IRS tell them to get fucked.
 

Jehuty

Member
Oct 25, 2017
130
Meh, living in Wisconsin, I can say most people don't believe in the whole Foxconn thing. Everyone in the main cities (Milwaukee, Madison) know its crap, Racine and Kenosha counties know its crap. Its mainly the Waukesha county crowd (Republican central) and some republicans in the barely any civilization part of the state (literally anything north of Milwaukee or Madison) that believe Foxconn will do anything substantial.

I don't want to jynx anything, but I have a hard time believing that Wisconsin will vote red next year. It really does seem like if some moderate gets the nod next year (Joe Biden), that he will win the state. Wisconsin isn't as red as people believe it to be.
 

Geist 6one7

Member
Oct 29, 2017
4,381
MASS
I mean at this point it looks like not even the building is getting built let along bots installed
But people actually thought they were gonna have 13,000 people making LCD's, especially on American wages? And Foxconn was gonna increase the number of their employees by over 8 times? The no factory thing seems like a better outcome for the state at this point re: subsidiaries.
 

Titik

Member
Oct 25, 2017
7,490
Uh this is why big states should never give subsidies. Let them fight for you, you don't fight over them. We have the workers, cultural, educational and actual real infrastructure for this type of shit.

I'm glad Los Angeles of all places isn't giving them subsidies anymore. I seem to remember that Lucas museum going to Chicago or some shit but they ended up going to LA anyway. Lol
 

Isilia

Member
Mar 11, 2019
5,807
US: PA
I feel I never see a good story come out of the "they will pay for themselves!" companies getting huge tax breaks. Strangely of course.
 

Wraith

Member
Jun 28, 2018
8,892
every bump is more depressing as this train wreck continues
I'm glad The Verge has kept following this story.

I know the wider tech community was clowning on The Verge after that one dumb PC build video, but I do generally like their tech coverage. (Hoping Verge and Polygon don't end up getting deadspun.)
 

Dyle

One Winged Slayer
The Fallen
Oct 25, 2017
29,945
Glad that the wheels continue to come off of this scam faster with every coming day, though I can't say I'm looking forward to what the state's GOP will say and do once Evers and Kaul take the gloves off and take up legal action against Foxconn
 

Futureman

Member
Oct 26, 2017
9,405
Meh, living in Wisconsin, I can say most people don't believe in the whole Foxconn thing. Everyone in the main cities (Milwaukee, Madison) know its crap, Racine and Kenosha counties know its crap. Its mainly the Waukesha county crowd (Republican central) and some republicans in the barely any civilization part of the state (literally anything north of Milwaukee or Madison) that believe Foxconn will do anything substantial.

I don't want to jynx anything, but I have a hard time believing that Wisconsin will vote red next year. It really does seem like if some moderate gets the nod next year (Joe Biden), that he will win the state. Wisconsin isn't as red as people believe it to be.

I really hope you are right. My first thought was that people are going to buy the bullshit that this deal is falling apart because of a Dem governor.
 

Kthulhu

Member
Oct 25, 2017
14,670
I'm glad The Verge has kept following this story.

I know the wider tech community was clowning on The Verge after that one dumb PC build video, but I do generally like their tech coverage. (Hoping Verge and Polygon don't end up getting deadspun.)

Most people know they put out good stuff pretty consistently. The wider tech audience would probably not be happy.
 

Mr. Wonderful

Member
Oct 27, 2017
2,296
I read this on Madison.com last Friday.

My question is - how is this not plain and simple violation of contract law?

You said you were going to do these things.
You didn't do them.
Therefore our contract is null and void.

Does anybody know the details?
 

Titik

Member
Oct 25, 2017
7,490
I read this on Madison.com last Friday.

My question is - how is this not plain and simple violation of contract law?

You said you were going to do these things.
You didn't do them.
Therefore our contract is null and void.

Does anybody know the details?
I won't be surprised if there was something added to the contract by Foxconn during the negotiations to be able to do this since this whole things sounds like it was done haphazardly and quickly to score publicity points by state and city officials.

It would be so funny if people weren't losing homes left and right unjustly.
 

Nesotenso

Member
Oct 26, 2017
2,073

I personally know someone who just got hired by Foxconn in WI. I am shocked by how they are going about hiring. The person I know had just one screening interview from the hiring manager and was offered a full time position. There was no on-site and no technical interview over the phone for an engineering position. Also this dude lied on his resume. The whole process seemed incredibly ineptly run. I am guessing they have been hiring people like this just to meet their quotas to qualify for subsidies. This whole scam is going to implode sooner or later.
 
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