Dell / NC State to Grapple Over Tax Incentives
WRAL in Raleigh is reporting that while Dell has repaid some local and county incentives due to the accellerated closing of their Winston-Salem Desktop Factory, the company plans to not repay $6M in tax incentives earned while the factory was in operation.
Posted by Admin Date: Tuesday, December 8, 2009
Dell to Face Backlash in US Over Factory Closures?
When Dell brought in Mike Cannon as its head of operations, it was pretty clear; In order to reduce expense overhead, Dell would be shutting down much of its in-house manufacturing operations and shifting production to contract manufacturing. Dell’s expense structure was bloated and needed to trim down in order to compete with HP and Acer who have utilized this practice for years.
However, there may be a large backlash forming against the company who has, over the years, focused a majority of its sales focus in the United States and other western countries.
Many of these now-closed production centers (Texas, Tennesee, North Carolina, Ireland) have caused controversy in those localities. Jobs lost have been lost (for good?) and voters are left scratching their heads on why Dell received government incentives to bring these factories in the first place.
Will this affect Dell’s ability to sell to consumers and companies in these affeted areas? More so, could this negative brand impact grow beyond across the US and Europe? Check our articles like this, from a local North Carolina TV Station (WRAL): “Dell is turning its back on the U.S. – Just say no to Dell”.
In this current economic climate, you want to make all the friends you can. There’s a chance that consumers will rally around “Made in the USA products” in response to the negative ramifications of globalism. Dell and other US companies better find a way to respond to this.
Posted by Admin Date: Friday, October 23, 2009
Dell Will Repay Incentives to Local NC Municipalities
North Carolina’s News & Observer is reporting today that Dell has agreed to pay back $26.5M to local city and country authorities. Dell had originally received almost $300M from city, county and state programs to build its now closed plant in Winston-Salem, North Carolina.
Posted by Admin Date: Thursday, October 22, 2009
