Electric car maker Rosetown Motors (LMC) said Tuesday it would file for Chapter 11 bankruptcy, despite receiving millions of dollars in taxpayer funding through tax cuts and subsidies.

LMC received $4.5 million from jobs ohioIt is a private nonprofit that raises money through a government-mandated monopoly of sales of spirits, according to the company. cleveland.com, According to the Ohio Department of Tax Credits, $20 million in tax credits will be paid out over 15 years. business journal daily. LMC also received a $40 million loan from the plant’s former owner, General Motors, which received a $60 million grant from the state of Ohio, which was settled under the terms of the plant’s construction. only returned $28 million after the enactment. Open until 2039. (Related: It will be years before EVs are as affordable as gas cars, says Auto exec)

In 2009, when the plant was owned by GM, it received $60 million from the state of Ohio to build fuel-efficient and inexpensive vehicles, but closed in 2019 and was sold by GM to LMC. matter. reason.

Multinational Electronics Maker Foxconn Announces Investment $170 million Officials claim that LMC provided funding to LMC in 2021 to build and finance the factory, but the money was never fully delivered. press release The bankruptcy from LMC has resulted in a Chapter 11 bankruptcy filing and a lawsuit against Foxconn.

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“Despite our best efforts and dedication to the partnership, Foxconn has deliberately and repeatedly failed to execute the agreed strategy to maximize the value of Lordstown’s assets for the benefit of our stakeholders. It left Chapter 11 as the only viable option to do so, according to a press release, LMC CEO and President Edward Hightower.

Foxconn denied the allegations in a statement shared with the Daily Caller News Foundation.

Other automakers also receive huge government subsidies for the production of electric vehicles. Ford Motor plans to lay off at least 1,000 employees. The Wall Street Journal reportedless than a week after receiving a $9.2 billion loan from the Biden administration to invest in three electric vehicle plants in the southern United States.

The paper said the Biden administration is pushing for 50% of all car sales to be zero-emission vehicles by 2030, and there are moves to boost funding for electric vehicles. White House. The White House also designated $370 billion in funding to tackle climate change in the Control Inflation Act.

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