Rich Miller

Rich Miller

Pritzker struggles to get auto manufacturing in gear

Spread the love

By Rich Miller

The Rockford Register-Star reported last week that the state of Illinois “has submitted what could be its best offer to keep the Belvidere Assembly Plant operating and save what could be thousands of jobs.”

Stellantis announced in December it would idle its Jeep Cherokee assembly plant in February. So, there appears to be a glimmer of hope that the state can finally notch a victory with a carmaker after years of trying.

Jalopnik recently reported that Virginia Gov. Glenn Youngkin told the Ford Motor Co. that he didn’t want their $3.5 billion electric vehicle battery plant which would employ 2,500 workers because the company had partnered with China.

RichMiller 1

Rich Miller

Ford already has a big assembly plant in Chicago. Maybe the state could capitalize on this Virginia thing?

But something else happened in December which highlighted why Illinois has had so much trouble closing deals with the automotive industry, even with a couple of lucrative subsidy laws passed within the last year or so.

Volkswagen filed a federal lawsuit in December that described a bill which overwhelmingly passed both Illinois legislative chambers and was signed into law in 2021 as, “crony capitalism at work: redistributive legislation that takes hundreds of millions of dollars from some (but not all) motor vehicle manufacturers and, for no public purpose, deposits that money directly into the pockets of politically favored Illinois [car] dealers.” The automaker claims the law is costing it an extra $10 million a year.

The bill in question (HB3940) was hotly opposed by automotive manufacturers. The law forces manufacturers to reimburse car dealers at a much higher rate (the auto industry says it’s a 50% higher rate) for warranty repairs. The bill came about after a labor dispute between dealerships and a mechanics union. They apparently decided to let the carmakers pay to resolve their monetary dispute, although the mechanics ended up on strike anyway because the dealers allegedly kept the new windfall initially instead of passing it through.

Just about every state legislator has multiple auto dealers in their districts and Democrats have been eagerly allying themselves ever closer with organized labor in past years, so the bill hit a sweet spot with both parties and cleared the House 85-24 and then passed the Senate without a single dissenting vote a few weeks later.

The manufacturers say the law is costing the industry $240 million a year. Yes, you read that right–$240 million per year. They claim Illinois has the highest warranty repair costs in the nation, by far.

The manufacturers were furious and remain so. Since the cost of doing business in a state is a main factor in deciding where to locate a new plant or keep a plant open, the law is not helping Illinois overcome automaker objections.

The subsidies the state can offer simply don’t compare with the gigantic annual cost of that 2021 law. Couple that with our high local property taxes (these electric vehicle plants take up huge amounts of space) and other costs and hurdles (Ohio, like Illinois, is not a “right to work” state, but has a new concierge system to quickly clear red tape), and you can see why the state hasn’t yet convinced a national or international corporation to construct an electric vehicle-related facility here.

It’s no secret that Illinois has reputational issues. People love to run Illinois down. It seems to be a major sport everywhere. When Gov. JB Pritzker recently appeared on CNBC while he was at the World Economic Forum in Davos, Switzerland, the first question he faced was how he would attract businesses when so many existing businesses want to leave Illinois.

That 2021 law merely added to the state’s reputational problems. Manufacturers say that the bipartisan eagerness to quickly throw them under the bus is something they hadn’t ever witnessed before here. The substance was bad enough, but the process was outrageous, they say. One industry lobbyist called the process a “radical departure” from the past. The whole thing has understandably given them quite a bit of pause.

Even so, a key labor leader says unions haven’t yet been approached to repeal or modify the law (manufacturers disagree) and an official with the governor’s office says they are unaware that this remains a big issue with carmakers.

I suppose we’ll see what happens with the Stellantis Belvidere plant in the coming days. If Pritzker does cut a deal and convinces the company to stay and even expand, he’ll have overcome some gargantuan hurdles.

Rich Miller also publishes Capitol Fax, a daily political newsletter, and CapitolFax.com.

1 Comment

  1. Kelly Smith on January 29, 2023 at 12:13 pm

    Pritzker will see to it if anything is going to benifit Illinois ,it will most definitely be to his advantage ,and he will have his paws in the pot for personal gain. His concern is Not for Illinois its for JB..



Local News

GSWNH_TabaraesAndMinaDuarte_012822

Tabares backs West Lawn Branch Library

Spread the love

Spread the love Twenty-third Ward Ald. Silvana Tabares (left) recently toured the renovated West Lawn Branch Library, 4020 W. 63rd St.,, with new branch manager Mina Duarte. Details about the renovation’s may be found in the West Lawn column in the January 28 Greater Southwest News-Herald.   –Supplied photo

GSWNH_ChuyStarbucks_012822

Chuy backs Starbucks unionization

Spread the love

Spread the love U.S. Rep Jesús “Chuy” García (D-4th), white mask, recently stood with those who support unionization of Starbucks workers, outside a shop in the city. Workers are attempting to organize under the banner of Chicago and Midwest Joint Board, Workers United, an affiliate of the Service Employees International Union. –Supplied photo

Sophomore Danni Scully of Nazareth is triple-teamed by Marist in a 53-42 victory in LaGrange Park on Jan. 19. Photo by Jeff Vorva

‘Grizzled’ sophomores help Naz beat Marist

Spread the love

Spread the loveBy Jeff Vorva Staff Writer Nazareth’s “grizzled veterans” have won 19 of their first 20 games. The Roadrunners’ were victorious in a big East Suburban Catholic Conference showdown with Marist, with two sophomores doing most of the damage in a 53-42 win in LaGrange Park on Jan. 19. Nazareth improved to 19-1, 4-0.…

Sandburg’s boys bowling team is headed to state for the first time since 2017 after winning its own sectional on Saturday. Photo courtesy of Carl Sandburg

Postseason Sports Report: Area stars ready for state bowling and dancing

Spread the love

Spread the loveBy Jeff Vorva Staff Writer The first two IHSA state tournaments for winter sports will take place this weekend, and an army of area athletes will be competing in both. The boys bowling and competitive dance championships will be held Friday and Saturday, with the bowlers heading to St. Clair Bowl in O’Fallon…

Stagg coach Marty Strus gets ready to talk to his players during Friday night’s game against Andrew. Photo by Jeff Vorva

Strus tops former coach in Stagg’s win over Sandburg

Spread the love

Spread the loveBy Jeff Vorva Staff writer Marty Strus has nothing but good things to say about his former high school coach, John Daniels. “He’s meant a ton to me,” Strus said of the coach he faced off against last week when his Stagg Chargers took on Sandburg. “He meant a lot to me as…

palos tax appeal flyer for 1-26-22

Palos Township tax appeal workshop on January 26

Spread the love

Spread the love

For 68 years the Palos Area Chamber of Commerce has remained actively involved in the everyday life of the Palos area, residents and business community. (Supplied photo)

Palos Area Chamber dedicated to promoting area 

Spread the love

Spread the loveBy Kelly White  Dedicated to helping local area businesses strive is the Palos Area Chamber of Commerce. The chamber was formed in 1949 when a small group of merchants joined together for the purpose of advancing economic, industrial, professional, cultural, and civic welfare of the Palos Heights area. For 68 years, the Palos…

Peggy Zabicki

We need real solutions to crime

Spread the love

Spread the loveBy Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place •  (773) 504-9327 Crime and safety concerns are the number one topic of all the calls and texts I receive. It seems that many politicians offer no solutions except the usual lists of ways to keep safe. I think everyone knows about locking…

Mary Stanek

Icy spill yielded plenty of good will

Spread the love

Spread the loveBy Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place •  (773) 284-7394 Here is a giant shout out to our first responders in the community. On Jan. 9, when a sheet of ice descended on Chicago, I was walking the dog. Walking around Peck School was great.…

Joan Hadac

It’s a busy January in Gage Park

Spread the love

Spread the loveBy Joan Hadac Neighborhood correspondent at large Greetings, Gage Parkers! I’m pleased to be filling in this week for Karen Sala. It’s fun for me to report on Gage Park, the neighborhood where I lived for the first 26 years of my life. There’s always something happening in this big, exciting part of…

Neighbors

dvn 6-14-24 riot fest lineup

Riot Fest abandons Chicago park for SeatGeek Stadium

Spread the love

Spread the loveBy Bob Bong Last year, Lyrical Lemonade moved its Summer Smash hip-hop music festival from Chicago’s Douglass Park to Bridgeview’s SeatGeek Stadium. Thousands of fans poured into the stadium at 7100 S. Harlem Ave. over the course of three days and, by most accounts, enjoyed the experience. Summer Smash returned to SeatGeek this…

Alyssa Blomberg of the group Ramzi and the Loafers, sings during a performance last year at Orland Park’s inaugural SummerFest. (Photo by Jeff Vorva)

Comings & Goings: Orland Park Summerfest returns this weekend

Spread the love

Spread the loveBy Bob Bong Back for a second go round this weekend is the Orland Park Area Chamber of Commerce’s Summerfest. The event combines a carnival, live music, an array of dining options and a car show, at the 153rd Street Metra Station location in Orland Park and will run from Friday, June 14,…

dvn 6-13-24 township repair cafe for 6-15

Repair Cafe this Saturday at Township of Lyons HQ

Spread the love

Spread the loveBy Steve Metsch Repair cafes have become quite the thing for the Township of Lyons. So much so that another repair cafe will be offered from 10 a.m. to 1 p.m. this Saturday, June 15, at the township office, 6404 Joliet Road in Countryside. A repair café held in May was a smashing…

Father’s Day will be especially hard for Jonathan and Kayla, children of the late Arturo Cantu, one of his sisters said. (Supplied photo)

‘They didn’t have to kill my brother’ – sister of slain Bridgeview man

Spread the love

Spread the loveBy Steve Metsch Arturo Cantu should be celebrating two big events this weekend. He would have celebrated his 40th birthday on June 14. And, a sister said, he would have enjoyed Father’s Day on Sunday, spending time with family and his two young children. Instead, 10 family members and friends gathered in a…

Sisto Brito

‘You just learn to live with the pain’

Spread the love

Spread the loveStatus hearing in July for McCook murder By Steve Metsch The attorney representing a Chicago man charged with murdering a Blue Island man in McCook in February told a judge Wednesday there’s been “a significant and outstanding discovery in this matter.” Attorney Damon Cheronis made his comment before Cook County Circuit Court Judge…

lagrange police logo

Man shot in La Grange; suspect arrested in Stickney

Spread the love

Spread the loveBy Steve Metsch A man was shot Tuesday afternoon in La Grange, according to a news release received Wednesday from the police department. A suspect has been apprehended, the release said. The shooting victim remains in stable condition at a local hospital, the release said. La Grange Police, working with the Major Case…

CRR_NH

Clear-Ridge Reporter and NewsHound June 12, 2024

Spread the love

Spread the love

Softball stock

Softball | Marist will play for state title for fourth straight season

Spread the love

Spread the loveBy Randy Whalen Correspondent Marist returned to the state title game for the fourth straight season with a 7-1 victory over Mundelein in the semifinals, held June 7 at Louisville Slugger Sports Complex in Peoria. The Mustangs (36-2) were making their first appearance at state since 1996. “We have a core group of returners,”…

Terrence Hickey is retiring at the end of June after working 18 years as a building inspector for the village of McCook. (Photo by Steve Metsch) 

McCook building inspector retires after 18 years

Spread the love

Spread the loveBy Steve Metsch After 18 years of inspecting buildings, be it a modest bi-level house or a sprawling multi-million-dollar warehouse, Terrence Hickey is retiring from the village of McCook. His retirement takes effect June 28, Mayor Terrance Carr said during the June 3 meeting of the village board. “I’m jealous,” Carr said. “(He’s…

Members of Summit Girl Scout Troop 56615. (Supplied photo)

New Summit Girl Scout troop off and running

Spread the love

Spread the loveBy Carol McGowan There’s a new Girl Scout Troop in Summit, and they have been busy. Troop 56615 is made up of girls from Summit School District 104 from first-grade to third-grade, and between 7-9 years old, making them Brownies in the scouting world. They have 10 girls so far, and Troop Leader…