Reports: Volvo no longer considering NC for auto plant

As North Carolina’s main jobs incentive fund remains empty amid legislative wrangling, reports indicate that Volvo is no longer considering building an auto plant here.

Reuters reported last week that Volvo had narrowed its choices to two states, citing anonymous sources. The news agency named South Carolina as one of the states but did not name a second. The Atlanta-Journal Constitution, citing anonymous sources, reported on Monday that Georgia is the second state under consideration.

Volvo announced last month plans to invest $500 million to build a new plant in the U.S. The company’s announcement didn’t mention specific locations, but multiple reports have previously said North Carolina was one among several southeastern states in the running.

Asked about the reports Tuesday, Commerce Secretary John Skvarla would only say that “companies want certainty.” And he says the legislature’s inability to agree on incentives has made it hard to lure new employers – some aren’t even approaching the Commerce Department anymore.

“I think we’re at the point where we don’t know what we’re missing,” Skvarla said.

The House and Senate have each developed competing jobs bills that would both add funding to the state’s main incentive fund, Job Development Investment Grants, which is out of money.

Skvarla and Gov. Pat McCrory want the Senate to approve House Bill 117, which would would double the money allotted to the fund from $22.5 million for the current two-year period to $45 million, allowing McCrory to promise millions to employers before the end of the year. It passed the House last month; Senate Republicans have filed their own proposal but haven’t brought it up for a vote.

The Senate wants the plan to include lower corporate taxes for all companies. The House plan includes tax credits for jet fuel and technology data centers.

The Senate has passed a short-term bill that would add $5 million to JDIG program, althought the House hasn’t debated it. Skvarla calls that the “Band-Aid bill” and says he’d support it if it also extended the expiration date of the program. He says several companies are in the pipeline for incentives but could go elsewhere within weeks or months.

“We are making JDIG grants conditional on something happening (in the legislature), but how long does a company put up with that?” he said. “We’re just holding our breath.”

North Carolina has assembled three “megasites” that state officials are offering to automakers. The sites are in Randolph County, Chatham County and Edgecombe County.

Reuters quoted a Volvo spokesman saying that the Swedish automaker hopes to make a decision “in the next few weeks.”

Staff writer Colin Campbell contributed.

This story was originally published April 21, 2015 at 11:09 AM with the headline "Reports: Volvo no longer considering NC for auto plant."