Rich Miller
Pritzker struggles to get auto manufacturing in gear
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.
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
Local News
Rush rips USDA over plight of black farmers
Spread the love‘House is on fire,’ congressman says From staff reports U.S. Rep. Bobby L. Rush (D-1st) recently questioned U.S. Department of Agriculture Secretary Tom Vilsack about what Rush called “the dire prognosis of black farmers in the U.S. and the steps USDA is taking to help minority farmers.” “As you well know, our nation’s…
Charge man with Archer Heights carjacking
Spread the loveBy Tim Hadac Police say they’ve solved a carjacking that occurred in Archer Heights earlier this month. An 18-year-old Southeast Side man was charged with aggravated vehicular hijacking in connection with the crime. Monte Handley, of the 9000 block of South Muskegon, was apprehended by police in the 7500 block of South Ellis…
Charge man in shooting of 2
Spread the loveBy Tim Hadac A 22-year-old West Lawn man was charged with two counts of aggravated battery, as well as aggravated unlawful use of a weapon, after he was arrested in the 3700 block of West Marquette Road at 4:06 p.m. Monday, Jan. 17. Isaiah Barco allegedly shot two men in a crime that…
Many crimes down in Orland, but weapons arrests concerning
Spread the loveBy Jeff Vorva Orland Park Police Chief Joseph Mitchell had mostly good news when revealing the village’s 2021 crime statistics. But one glaring area that has him bothered is the number of unlawful use of a weapon arrests that have been shooting up. Mitchell and Mayor Keith Pekau attribute it to felons from…
Former GOP allies to battle for county board race
Spread the loveGorman wants to reclaim seat from Morrison By Bob Bong A battle royale is brewing in the race for the Republican nomination for Cook County Board’s 17th District. The 17th District is one of only two county board seats held by Republicans and it has only ever had a Republican commissioner dating back…
Palos Park inches closer to gaming solution
Spread the loveBy Jeff Vorva Signs are pointing to the fact there probably will be limited video gaming in Palos Park. Mayor John Mahoney and the village council rejiggered a few things with an ordinance and some of the village codes and the end result is that Monday they asked village attorneys to look into…
Police reports
Spread the loveShot in the head, killed on Archer A 33-year-old man was shot in the head and killed as he drove a vehicle in the 4200 block of South Archer at 5:13 a.m. Saturday, Jan. 22. The victim was taken to Mount Sinai Hospital, where he was pronounced dead at 5:47 a.m. Police said…
Tabares backs West Lawn Branch Library
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
Neighbors
Oak Lawn Fourth of July festivities
Spread the loveCelebrate Independence Day at the Village of Oak Lawn’s annual Fourth of July Parade at 4 p.m. on Saturday, June 29! This cherished community event brings together families, friends, and neighbors to honor the spirit of freedom and patriotism. Parade will step off at 95th Street and Lacrosse and head west on 95th…
District 230 names Director of Safety and Security
Spread the loveFrom staff reports The Consolidated High School District 230 Board of Education approved Dr. Mary Pat Carr as the district’s first Director of Security. She will move from her current position as Assistant Principal of Activities at Stagg High School to the Administrative Center on July 1. Her duties as Director of Safety…
Worth Public Library kicks off summer reading program
Spread the loveBy Kelly White Patrons at the Worth Public Library welcomed in the summer season earlier this month. The library, 6917 W. 111th St., hosted its annual celebration on June 1 to bring patrons of all ages out to sign up for its summer reading program. “We love any excuse to celebrate reading with…
Fire knocks out Orland’s UFC Gym
Spread the loveFrom staff reports A fire last Thursday afternoon practically destroyed an Orland Park gym and knocked out neighboring businesses, as well. Orland Park firefighters received a call at 2:31 p.m. June 20 for a reported fire in the UFC Gym located at 66 Orland Square Drive Unit C. Multiple 911 calls were received for a…
Chicago Ridge Fire Chief Bonnar retires
Spread the loveStarted his 50-year career as Orland Park cadet By Dermot Connolly Chicago Ridge Fire Chief William Bonnar officially announced his retirement from a nearly 50-year career at the June 18 Village Board meeting. Mayor Jack Lind made the announcement “with great regret,” joking that “he doesn’t have the age to retire but he…
Stagg tabs Allee Hernandez to guide girls hoops
Spread the loveBy Randy Whalen Correspondent Allee Hernandez has accrued many years of basketball experience as a player and as an assistant coach. She will soon embark on a new experience as a head coach at Stagg, where she will be the Chargers first new head coach in 16 seasons. She succeeds Bill Turner, who…
Shepard’s yearbook wins national recognition
Spread the loveBy Kelly White Shepard High School students have worked tirelessly to create a yearbook for this academic year that was nationally recognized. The high school, 13049 S. Ridgeland Ave. in Palos Heights, was chosen as a Yearbook Excellence Contest recipient from Walsworth Publishing Company, a family-owned printing company based out of Marceline, Missouri.…
Hickory Hills man charged in grandfather’s murder
Spread the loveBy Nuha Abdessalam A 32-year-old Hickory Hills man has been charged with first-degree murder in the June 21 death of his 90-year-old grandfather. Dean J. Faulk was charged on June 22 with the June 21 murder of Dean L. Faulk. Police said they responded to a call at 9:45 a.m. June 21 at…
Orland Park Public Library kicks off summer
Spread the loveBy Kelly White Summer is nearly here and the Orland Park Public Library is ready for it. On June 8, the library, 14921 S. Ravinia Ave., hosted its second annual Summer Reading Challenge Kick-Off event themed, Read, Renew, Repeat. “There are multiple interpretations to this theme,” Jackie Boyd, Communications Manager at the Orland…
llinois VFW names Porfirio Senator of the Year
Spread the loveIllinois Veterans of Foreign Wars recently selected state Senator Mike Porfirio as the Senator of the Year. “I’m deeply honored to receive this prestigious award from the Illinois VFW,” said Porfirio (D-Lyons Township). “I am committed to ensuring our veterans receive the protections, care and dignity they deserve. This recognition is a testament…
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..