Wednesday, January 30, 2019

The Con in Foxconn

Much was made by the moron Governor of Wisconsin (at the time) Scott Walker and his twin dumber, Donald Trump, of the investment by Foxconn to build a manufacturing plant and hire thousands of workers!  Right. Play Tennis anyone?  Game. Set. Match

The tax incentives were the HUGEST in history and much maligned as the most EXPENSIVE to taxpayers in history.   Now the hysteria over Amazon showed what lengths many communities would go to to have Amazon build HQ2 in their region.  Some where made public and some like those in  Tennessee were not.  We have no idea what the State offered to Bezos, maybe a blow job by the former Slattern Mayor as a perk but at this point we know only of the City promises which have been also under fire for their largess while the city struggles with a budget crunch. But this is not about people as this is about corporations and they are people too!

So now it appears that the big wet dreams of the future will not be happening. Not that this is new but it is newsworthy. Foxconn has a long history of the long con then add the current climate of trade wars, arrests and accusations about industrial espionage and the like by one of China's largest companies only add fuel to this fire of burning hell or of the climate, same diff.  Today the moron Trump opined that the negative degrees in Wisconsin made him wonder what happened to Global Warming.  YIKES!

Well Wisconsin double burn with no Packers in the Super Bowl and the weather this is more cold comfort.    Nashville its cold outside baby and well Amazon is a long way from letting you score.  Briley can always offer a hand job.  Those Welfare Queens are such demanding lying bitches.

This must be all the winning Trump keeps talking about as clearly his definition of winning is not like mine but then again nothing he says makes any sense.  Well so this is not a Grand Slam. 

Exclusive: Foxconn reconsidering plans to make LCD panels at Wisconsin plant
Jess Macy Yu, Karl Plume

(Reuters) - Foxconn Technology Group is reconsidering plans to make advanced liquid crystal display panels at a $10 billion Wisconsin campus, and said it intends to hire mostly engineers and researchers rather than the manufacturing workforce the project originally promised.
FILE PHOTO: A shovel and FoxConn logo are seen before the arrival of U.S. President Donald Trump as he participates in the Foxconn Technology Group groundbreaking ceremony for its LCD manufacturing campus, in Mount Pleasant, Wisconsin, U.S., June 28, 2018. REUTERS/Darren Hauck

Announced at a White House ceremony in 2017, the 20-million square foot campus marked the largest greenfield investment by a foreign-based company in U.S. history and was praised by President Donald Trump as proof of his ability to revive American manufacturing.

Foxconn, which received controversial state and local incentives for the project, initially planned to manufacture advanced large screen displays for TVs and other consumer and professional products at the facility, which is under construction. It later said it would build smaller LCD screens instead.

Now, those plans may be scaled back or even shelved, Louis Woo, special assistant to Foxconn Chief Executive Terry Gou, told Reuters. He said the company was still evaluating options for Wisconsin, but cited the steep cost of making advanced TV screens in the United States, where labor expenses are comparatively high.

“In terms of TV, we have no place in the U.S.,” he said in an interview. “We can’t compete.”

When it comes to manufacturing advanced screens for TVs, he added: “If a certain size of display has more supply, whether from China or Japan or Taiwan, we have to change, too.”

Rather than a focus on LCD manufacturing, Foxconn wants to create a “technology hub” in Wisconsin that would largely consist of research facilities along with packaging and assembly operations, Woo said. It would also produce specialized tech products for industrial, healthcare, and professional applications, he added.

“In Wisconsin we’re not building a factory. You can’t use a factory to view our Wisconsin investment,” Woo said.

Earlier this month, Foxconn, a major supplier to Apple Inc., reiterated its intention to create 13,000 jobs in Wisconsin, but said it had slowed its pace of hiring. The company initially said it expected to employ about 5,200 people by the end of 2020; a company source said that figure now looks likely to be closer to 1,000 workers.

It is unclear when the full 13,000 workers will be hired.

But Woo, in the interview, said about three-quarters of Foxconn’s eventual jobs will be in R&D and design - what he described as “knowledge” positions - rather than blue-collar manufacturing jobs. Foxconn is formally known as Hon Hai Precision Industry Co.

Rather than manufacturing LCD panels in the United States, Woo said it would be more profitable to make them in greater China and Japan, ship them to Mexico for final assembly, and import the finished product to the United States.

He said that would represent a supply chain that fits with Foxconn’s current “fluid, good business model.”

Heavily criticized in some quarters, the Foxconn project was championed by former Wisconsin Governor Scott Walker, a Republican who helped secure around $4 billion in tax breaks and other incentives before leaving office. Critics of the deal, including a number of Democrats, called it a corporate giveaway that would never result in the promised manufacturing jobs and posed serious environmental risks.

The company’s own growth projections and employment goals suggest the taxpayer investment would take at least 25 years to recoup, according to budget think tank the Wisconsin Budget Project.

Foxconn CEO Gou plans to meet with Wisconsin’s new Democratic governor, Tony Evers, a past critic of the deal, later this year to discuss modifications of the agreement, according to the source familiar with the company’s thinking.
U.S., China face major differences ahead of trade talks

Evers could not be reached for comment.

Currently, to qualify for the tax credits Foxconn must meet certain hiring and capital investment goals. It fell short of the employment goal in 2018 - hiring 178 full-time jobs rather than the 260 targeted - failing to earn a tax credit of up to $9.5 million.

The company may be prepared to walk away from future incentives if it is unable to meet Wisconsin’s job creation and capital investment requirements, according to the source familiar with the matter.

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