GM Revives WNY (New York, Buffalo, Tonawanda: loans, layoffs, bankruptcy)

[Toyman at Jewel Lake]

Just saw this article this morning. Congrats WNY, nice to see some positive economic news.

GM Revives Western NY « Liveshots

Struggling auto giant General Motors recently emerged from bankruptcy and has managed to repay their $8.1 billion in loans, five years early. This is great news for American taxpayers-and even better news for the Tonawanda Engine Plant in Buffalo, NY. Just months after suffering layoffs, GM is investing $400 million dollars into their western New York to produce a new line of fuel-efficient engines. This investment will save 300 jobs and create 415 more here, which will allow the company to re-hire hundreds of recently laid off employees.

OK, so the first part of that statement isn't actually true, but the rest of the article is good news.

[Checkered24]

Regardless of the actual truth behind the "loans" it is nice to see the investment locally! They could have invested the money in their own back yard, Detroit area, and instead chose Tonawanda!

[HowardRoarke]

So they used bailout money (taxpayer dollars) to add an engine line to a plant located in a depressed, union-heavy area.

You're welcome.

[Toyman at Jewel Lake]

Originally Posted by HowardRoarke

So they used bailout money (taxpayer dollars) to add an engine line to a plant located in a depressed, union-heavy area.

You're welcome.

I agree with the sentiment, even though it may be good for my old stomping grounds.

Hank Reardon

[VegasRocks]

A few years ago there was over 10,000 UAW Auto workers in WNY
making a living wage (between $50,000 & $100,000) they really pumped
the local economy, now their less then 1,000 making ($12hr to $14hr) were is
the progress?

[Checkered24]

Sorry, but the state of the local economy, and the national political implications of GM's bailout are separate issues.

Locally, Buffalo's economy has been stagnant for decades. Any jobs that could leave, which are retained, is a positive for the area.

GM got the bailout. That is not the fault of Buffalo area. GM could have easily taken the bailout, and moved the engine plant to China. They didn't and as such, more people will have jobs, regardless of the salary, in a job starved area. That is a better outcome than the alternative.

Whether the bailout should have been made is a completely different discussion.