More than six major investors have walked away from the old General Motors plant in Shreveport, and Elio Motors is still not producing the jobs it promised to have in the works by the end of 2015.
The Shreveport Times reports about a dozen elected officials convened at Government Plaza on Wednesday to hear from key stakeholders about why promises to bring economic development to the Shreveport plant have been deferred—and why there are still no jobs for city residents.
IRG Director of Real Estate Onno Steger said a “significant amount of work” has gone into the plant since 2013. Steger said a number of prospective investors—including tractor, bus, cotton and denim and other automotive manufacturers—have toured the facility since 2013 but have ultimately decided not to finalize a deal.
Louisiana Economic Development Assistant Director Mandi Mitchell said six major investment projects—ranging from $30 million to $1 billion in capital investments and with projected jobs ranging from 400 to almost 7,000 jobs—have fallen through since 2013. Mitchell said feedback from potential investors identified several challenges to attracting other investors, including Louisiana’s high sales and property taxes, the overall cost of doing business in the state and also a need for a robust transportation system and workforce.
But that didn’t explain why Elio Motors, a sub-lessee of the property for more than three years, hasn’t been able to bring back the 1,500 jobs it promised to have in place by the end of 2015.
Paul Elio, president of Elio Motors, said he ran into several unforeseen challenges and a lack of funding. Though Elio has been able to raise about $100 million through measures such as stocks and reservations for vehicles, Elio said he still needs about $300 million more. He now expects to have the plant producing automobiles by the end of 2017.
“This has not happened on the time frame we thought. There have been a lot of obstacles, but we’ve hung in there,” Elio said at a four hour meeting at Government Plaza. “We don’t give up.”
The Wednesday meeting that followed the tour involved heated questions from Louisiana State legislators about what progress had been made at the plant since it ceased production in 2012, why Elio Motors was chosen as a main sub-lessee, what challenges remain in attracting other investors to the property and whether there are any current prospects. The meeting was attended by about two dozen members of the public.
