Foxconn wants to change the terms of its Wisconsin factory deal


Foxconn Wisconsin
Foxconn previously agreed a massive deal to build a factory in Wisconsin.
Photo: Foxconn

Foxconn promises that it’s working hard to deliver the Wisconsin factory it received $4 billion in tax breaks for. However, behind-the-scenes dealings show that the company could be trying to renegotiate terms.

A letter from Wisconsin Governor Tony Evers indicates that Foxconn proposed a change to the deal back in March. It is now planning to submit “the necessary documentation” to do so in the coming weeks.

A section of the letter (which can be seen in full here) reads as follows:

“Because of recent media reports, I … want to clarify aspects of the conversation from our March meeting. At that meeting, you indicated that Foxconn intends to suggest several changes to the existing agreement to better align the terms with the evolving project and global marketplace. To my knowledge, this was the first time either Foxconn or the State of Wisconsin had mentioned amending or changing the agreement approved in 2017.”

Deal or no deal?

Foxconn, for its part, swears that it will deliver the 13,000 jobs to Wisconsin that it promised. This is despite the fact that the company has changed its goals from producing large displays to smaller ones to healthcare products. This most recently changed back to small displays after President Trump stepped in to challenge CEO Terry Gou, who is getting ready to step down from Foxconn.

This isn’t the first time Tony Evers has referenced Foxconn’s changing of plans. “Clearly the deal that was struck is no longer in play and so we will be working with individuals at Foxconn and of course with (the Wisconsin Economic Development Corp.) to figure out how a new set of parameters should be negotiated,” he told a newspaper earlier this month.

The question now is what Foxconn’s purpose in renegotiating the deal will involve. This certainly doesn’t sound a promising development, though.

Source: WPR

Via: The Verge


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