Governor Brian Kemp made public remarks about electric vehicle manufacturer Rivian Automotive announcing plans to pause work on its $5 billion plant in Georgia in a Tuesday press event.
Kemp, whose support for the Rivian deal helped generate $1.5 billion in tax incentives for the company, called the situation “no doubt disappointing” in a press conference.
Kemp acknowledged, “it’s no doubt disappointing” that the company is delaying work on its Georgia factory but asserted the electric vehicle company told the governor’s office “there is no doubt” they will finish the work by 2030.
“We’re under contract with them, the state’s in a really good place. I mean look, it’s no doubt it’s disappointing that they’re delaying, but they’re dealing with market forces,” said Kemp, before again acknowledging, “For us it’s disappointing.”
The governor nonetheless reiterated his position that work at the Rivian factory will eventually be finished according to the terms of Georgia’s contract.
“We honor our commitments in our state, and we’re going to do that in regards to the site, and we are expecting the company to honor their commitments as well,” he explained.
Asked about Georgia lawmakers who are reportedly contemplating legislative acts to convince Rivian to resume work in Georgia, the governor demurred.
“I understand that they’re frustrated, but a lot of the things that we’re doing are tied to the site,” said Kemp, suggesting that the factory’s site is already worth much more than it was when work began.
Kemp also suggested seeking retribution against Rivian could hurt Georgia in the long term.
He explained, “We don’t want to send any signals, either, that says Georgia’s going to renege on its commitments,” asserting it “would be bad for our business environment.”
“When cooler heads prevail, they’ll understand that too, even though this stings a bit,” the governor declared.
After the Rivian deal was inked in 2022, the Center for Economic Accountability called it the “Worst Economic Development Deal of the Year,” arguing the deal stands out “for the way that bureaucrats and elected officials completely failed in their responsibilities to the state’s residents and taxpayers.”
The group explained that Georgia “made a massive, speculative investment of taxpayer money in an early-stage company in a highly competitive and government policy-dependent industry without doing basic due diligence.”
After Rivian announced the pause in Georgia, Center for Economic Accountability President John Mozena noted the nonprofit’s prior prediction.
According to Mozen, the Rivian news “demonstrates something that we were warning about when it was first announced: It was a massive and speculative investment of taxpayer dollars in a project that deserved far more due diligence and transparency than it received.”
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Tom Pappert is the lead reporter for The Tennessee Star, and also reports for The Georgia Star News, The Virginia Star, and The Arizona Sun Times. Follow Tom on X/Twitter. Email tips to [email protected].
Photo “Brian Kemp” by Brian Kemp.
With all of the inflation and the escalation of housing costs, there simply aren’t that many consumers left who are both willing and able to spend 75K on an automobile.