


State Rep. Tom Kunse (R-Clare) today issued the following statement in response to recent news that the Michigan Strategic Fund (MSF) has issued a notice of default to Gotion, Inc. regarding the company’s obligations under its Critical Industry Program (CIP) grant agreement for an electric vehicle battery plant project in Mecosta County:
“The state’s decision to hold Gotion in default confirms the concerns many of us raised from the very beginning. As the state representative of the district where Gotion is located, I have consistently questioned whether this project was properly vetted and whether it truly served the best interests of Michigan taxpayers. From the start, this proposal was marketed as a $2.4 billion investment that would bring more than 2,000 jobs to Mecosta County, but years later, we’ve seen little progress and just stalled development, lawsuits, and growing uncertainty.
“This is yet another example of why corporate welfare doesn’t work. Taxpayer funded incentive deals often fail to deliver on promises, leaving our communities with broken commitments and wasted public dollars. Promises of jobs and investment mean nothing if companies cannot meet their obligations.
“The state pulling the plug on this project highlights the urgent need for stronger accountability and transparency in how Michigan awards these deals. Economic development should prioritize sustainable, long-term opportunities for Michigan workers, not risky agreements that burden taxpayers with the cost. When government interferes with the market economy, it takes from one to bestow on another. It diminishes the incentive of the first, the integrity of the second, and the moral autonomy of both.”

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