2y ago

Foxconn's promise to invest $10 billion in Wisconsin is now a distant memory | It's now selling two mostly empty buildings in the state.

www.engadget.com

Foxconn's promise to invest $10 billion in Wisconsin is now a distant memory | Engadget

Foxconn's promise to invest $10 billion in Wisconsin is now a distant memory | It's now selling two mostly empty buildings in the state.::Foxconn is selling two buildings in Wisconsin, which have remained mostly empty since they were originally purchased for its plans to bring production to the US..

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2y ago

Foxconn's Promise to Invest $10B in Wisconsin Is Now a Distant Memory

www.engadget.com /foxconns-promise-to-invest-10-billion-in-wisconsin-is-now-a-distant-memory-090555405.html

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I remember arguing with a co-worker about how this deal was pure crap, and even if Foxconn delivered all the jobs they said they would, it would take 40 years to recoup the cost of the tax breaks. Scott Walker screwed over that area of the state HARD, people had land ceased/forced out, huge costly changes to the infrastructure in that area where the factory was supposed to be.
Surprise surprise, the shitty deal turned out to be a shitty deal.
- Seized
  
  "Seizing the means of production is a-okay if you're an oligarch seizing the proles or poorer capitalists assets"
  — Supply side Jesus
- How much do you think the taxpayers are on the hook for from the deal? Just curious what you think.
  
  Why does it matter what he thinks? We have actual figures:
  https://urbanmilwaukee.com/2023/07/06/murphys-law-foxconn-deal-is-still-costing-taxpayers/
  "That brought the total costs for taxpayers and ratepayers to build the manufacturing campus to $683 million... with more costs likely to come.
  "The debt taken on by the Mount Pleasant village government amounts to 500% of its operating revenue
  "Foxconn hired hundreds of workers toward the end of 2019, claiming them on its report to the state for the 2019 year, and then quickly laying the employees off early in 2020.
  "Microsoft plans to pay $50 million... to Foxconn, to reimburse it for money it spent to buy land. Meanwhile, local taxpayers will be on the hook to Microsoft, which will be eligible for up to $5 million per year based on improvements it makes to the land — this on a campus for which state and local taxpayers already spent hundreds of millions for road connections and sewer, water and electric infrastructure."

At least they aligned with the "con" part of their name 🤪
- Thought you meant "conservatives" there.

Wooing Foxconn to set up shop in the US was always a head-scratcher. These are the kinds of jobs Americans were jealous Asians had, and wanted to reshore? Low-margin contract manufacturing? Really?
- Actually yes. Though not the business owners really. Instead it was society and strategic planners. It is matter of supply security, not of profit maximization. Which is why incentives and penalties were involved.
  Also presumably lacking the cheapest of cheap labor, production automation would be increased. In low cost production countries like China, they don't always use hordes of cheap labour due to not being able to automate. Rather it is cheaper to use lot of wage slaves operating manual machines, than to pay for the more expensive specialized automated production machinery. Specially on short term. On long term the automated machines probably amortize themselves and then start to make gains over the wage slaving, but well that takes time and one thing quarter report stock market capitalism hates is having to wait for anything. They will take less profits overall over decade, if they can get more profits this quarter or this year.
  Is it rational? Well no obviously rational business expecting to be around for decade would take the long term bigger overall profits. It's literally more money earned for the company as long as one plans for the company to be around at the end of the decade. However companies are not managed by rational machines, but instead by these things called CEOs. CEOs, despite their claims, are often anything but rational. CEO's with personal motives, CEO's with emotional quirks, CEO's with inbuilt expectations, CEO's with in-built assumptions, often wrong assumptions, CEO's with incentive packages that often are not really that thought through. Stock holders looking to incentivize short time stock gain over long term business profitability.

This is the best summary I could come up with:
When Foxconn announced its plans to open facilities in Wisconsin back in 2017, it promised to invest $10 billion into bringing production to the US that was expected to lead to as many as 13,000 jobs.
Now, the Taiwanese supplier to tech giants like Apple is selling two properties in Eau Claire and Green Bay, purchased for almost $12 million in 2018.
Meanwhile, the portion Foxconn owns in a mixed-use property in Eau Claire has reportedly remained empty for years.
In 2021, however, Foxconn massively altered the scale of the project and told the local government that it would be investing $672 million instead of $10 billion like it intended.
Foxconn didn't comment on its Eau Claire property, but it told WPR that it "will add to the vibrancy of the city's downtown."
Green Bay Mayor Eric Genrich posted on X that he hopes a sale "will lead to better utilization of a fantastic waterfront building."
The original article contains 329 words, the summary contains 156 words. Saved 53%. I'm a bot and I'm open source!

The latest deal between Foxconn and Wisconsin reduces the planned subsidies for the project, which ultimately could have cost taxpayers over $4 billion. Foxconn is now eligible for $80 million in tax credits, down from $2.85 billion. Governor Tony Evers said those credits are in line with those for which any company is eligible. They're performance-based and will depend on whether Foxconn hits capital investment and employment targets.
Emphasis above is all mine. This is non-news. They talked about what could have been but the subsidy was based on actual invements being made and people being hired.
Foxconn created ~1500 jobs (e.g. ~11% of what they targeted) and only got ~2.8% of the subsidy. Didn't Michigan win?
- Didn’t Michigan win?
  "total costs for taxpayers and ratepayers to build the manufacturing campus to $683 million… with more costs likely to come."
  That doesn't sound like winning. The state spent a fortune up front on surrounding infrastructure that was needed before Foxconn could start operating, and they never started operating.
- https://urbanmilwaukee.com/2023/07/06/murphys-law-foxconn-deal-is-still-costing-taxpayers/
  "Foxconn hired hundreds of workers toward the end of 2019, claiming them on its report to the state for the 2019 year, and then quickly laying the employees off early in 2020."
  Foxconn created jack shit.

One more fire the Trump win column! /s

Another major victory for the Republican party! Good job everyone!

Did everyone here forget that covid started in 2020? This article tries to knock on foxconn by suggesting that their "market fluctuations" claim is an excuse... DURING PEAK COVID. I wonder why they couldnt hire more people or have more of their building occupied... must have been BLATANT CONSERVATIVE LIES
- Ohh I'm sorry I didn't realize that now that covid is over this multi billion company is coming back to fulfill it's promises. That's on me, I must have missed that part.
  
  Thats really bad faith, dont do that
  You are throwing the baby with the bath water. Almost every company had to reduce size, reduce occupancy and reduce output. Disregarding the impact of covid when that was a major reason for companies failing is disingenuous.
- Yes COVID happened but this deal was always a sham. You just haven’t learned enough about it.
  
  Tell me how it was a sham, and tell me how covid had no effect on why
  Occupancy wasnt as great as they said it was given everyone was isolating and staying 6ft distance
  Supply chains were heavily backlogged due to companies not getting enough man power. My assumption is that given that foxconn is a materials manufacturer, their reduction in personnel heavily reduced their potential output.

24 comments