News Dell told to repay millions in state aid

http://www.bit-tech.net/news/bits/2009/10/12/dell-told-to-repay-millions-in-state-aid/1

Dell has been told by the North Carolina government that its closure of the state-backed Forsyth County manufacturing plant means it owes millions in grants and tax breaks.

 

If Dell could'nt actually afford to keep the factory open, who gives a dam?

Now if that isn't fully true, fine them into the ground!

 

I would hazard a guess that the people in control at Dell would be aware of this problem and wouldn't have closed a factory knowing they would end up with a wacking great 'fine' for doing so.

Of course based on my experience with people in control, I know that common sense is greatly lacking...

 

Closing a plant in NC, that had 900 people; sounds like it was a pretty big plant. But in the wake of other companies laying off 10,000+ people, this doesn't sound like huge workforce displacement for a state like NC.

 

if they do get fined all that happen they close 1-2 other plants to save the money that the reds take

 

They probably won't care as long the plants they close as a result aren't in the state of NC.

 

wait they still have plants in the US huh I figured it was all coming out of china

well in general I hate Dell so if they get fined I say take it to the max then.

 

The loss of 900 jobs equals $318 million???? Okay, if the plant were to employ all 900 employees for 10 years, the workers would average around $35,000 per employee.

What idiot(s) in the state government thought that a $318 million investment was worth employing 900 people?

 

you're failing to account for the secondary effects of a large plant like that. Having that plant there required more shipping capabilities in the region (so more jobs at DHL/FedEx/whoever), housing for those employees, stores and other support infrastructure (so more jobs...) etc. So the math's just not that simple.

I grew up in Forsyth County (haven't lived there in 10+ years) but I remember it was a big deal when it opened. The state government has an interest in doing things like this because they often serve as an incentive for further growth in the region... like a "seed nucleus" of sorts. They want businesses to operate in their state because they get to tax them (and all the employees/other business they bring in.) Don't you remember SimCity? You always set the commercial/industrial tax really low at first (to encourage growth) and then raise it once your blue/yellow zones get a bit more established -- the ole' bait 'n' switch. The state was giving them tax breaks for X years with the intention that after that time was up, the plant would have expanded, and then the state would have a larger tax base, and be able to collect more money down the line. By closing it up, Dell's screwed up that little plan, and the state is upset that their investment didn't pay off. I can't speak as to the legal/contractual aspects of it (and how it would shake up should it go to court) but that's about it.

Also, re: the comment about China: the _parts_ come from China, but the actual PCs are assembled in the US, most of the time. Think about it: it's much, much easier to import 100,000 identical motherboards/videocards/hard drives/etc and put them together here, than it would be to coordinate all the custom assembly, software loads, accessories, etc. overseas, and make sure they didn't get mixed up/damaged in shipping, and they got to the right places, etc. (I'm fairly confident in saying that anyone who's ever dealt with electronics manufacturing and/or overseas outsourcing would agree.)

 

Dell is a multi-national corporation with an annual budget very likely larger than that of the state of North Carolina.
As such, Dell had to know exactly what they were doing when they signed the agreement with NC. Now that things
haven't panned out quite they way Dell anticipated, they want to shut down their NC plant and be "let off the hook"?
I would hope "not bloody likely". They *should* have to pay back "every red cent" they got, for failing to fulfill the
terms of that agreement. Just because its Dell and NC should have no bearing on anything.