General Motors Co. will recompense the state of Ohio $28 million in tax incentives following the closure of its plant in Lordstown, Reuters reported on Tuesday.
The automaker announced it would shutter four U.S. facilities, including one in northeastern Ohio, in November 2018. The next year, it sold the Ohio plant to Lordstown Motors.
President Trump and several Ohio lawmakers blasted the closure, while Democrats have highlighted Trump’s 2017 claim that “all the jobs were coming back” in a Youngstown speech near the facility.
Trump has heavily touted Lordstown Motors’ work, inspecting a prototype pickup truck outside the White House on Monday, according to Reuters.
Ohio State Attorney General Dave Yost (R) in June demanded GM pay the state back $60 million after announcing the closure.
“Accountability is the key to good business and we’re holding GM accountable for not living up to its end of the contract,” Yost said. “We demand the money that is rightfully owed to Ohio – no more, no less.”
The tax credit came with the guarantee that GM kept operations at the plant through 2028, with 3,700 jobs retained through 2040.
Under GM’s agreement with the Ohio Tax Credit Authority, it must also repay $12 million for “community support programs” in the Mahoning Valley, the northeastern Ohio area that includes the city.
In a Monday statement, the company said it will also invest $71 million in two other Ohio facilities, including $39 million in Toledo and $32 million in Defiance.
“Through these investments, GM continues to strengthen its significant manufacturing presence in Ohio,” vice president of North American Manufacturing and Labor Relations Phil Kienle said in a statement. “Our Toledo and Defiance teams continue to focus on building world-class products for our customers and these actions are an investment in their futures.”