Mercury incentives totaled $70 million in Wisconsin

Posted on 09 November 2009

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Wisconsin Gov. Jim Doyle says the state incentive package to keep Mercury Marine in state totals $70 million through a combination of tax credits, grants and forgivable loans.

The local incentive package includes $3 million from the city of Fond du Lac. These funds will be provided to purchase land owned by Mercury Marine and/or in the form of forgivable loans and grants from the City of Fond du Lac and its agencies.

Up to $50 million will be available in the form of a low-interest, performance-based, collateralized loans from Fond du Lac County with guarantees provided by both the city of Fond du Lac and Fond du Lac County. The loan proceeds are to be used for new engine development; the relocation of some of the Stillwater, Okla., manufacturing positions to Fond du Lac; and a retirement incentive payment to union workers.

"Mercury Marine is an iconic Wisconsin company that has provided jobs and investment for this area for more than 70 years," Doyle said in a statement. "Retaining the company and its nearly 2,000 jobs in these difficult times took hard work and cooperation."

In September, union employees at the Fond du Lac plant approved concessions that would allow the company to remain in Wisconsin. Without those concessions, Mercury officials had said they would close the Wisconsin plant and move operations to the company's Stillwater facility.

"Governor Doyle was instrumental in the process of developing agreements that enabled Mercury to remain in Wisconsin," Mercury president Mark Schwabero said in a statement. "Like many companies, Mercury has faced many difficult challenges during the economic downturn, and the governor's insight, strength and commitment helped create solutions necessary for Mercury to continue operating in Wisconsin."

Comments

7 Thursday, 12 November 2009 22:26

Watch out boys the city of Waukegan and OMC parted ways the city now despises anything outboard related. It's amazing how good things were then when things went bad the went south Quickly or north asap. Just watch who you sleep with

6 Tuesday, 10 November 2009 02:07

incentives, loans and now Merc Cruiser is putting its customers on allocation.  Its good to be king.

5 Monday, 09 November 2009 22:55

It does nothing for the ones who pushed the cart got let go,laid off or fired.But it does keep the ones who rode the cart

4 Monday, 09 November 2009 20:10

Interesting, the Wisc. Governor, leaving office (Term Limits), and run for the US Senate, needs the Union support, and he wants to showcase his actions.

The Oklahoma offer was much better, and no union wages or contracts, nor was the offer a loan. No public information comparing the two, only a manipulated exercise, by poor management. All the industry experts, vendors, customers, etc; have stated the Oklahoma offer was far superior. Then why was the decision made to flip flop on vote. Why not a recall of the board's actions, or industry leaders challenging the results?

SIMPLE ANSWER. .... it wasn't supposed to happen that way. When the union contracts come up again, the OEM's and dealers will not be happy. It will only let competition get stronger, and Mercury loose market share. The managment and the Brunswick Board should have to answer the stockholders.

3 Monday, 09 November 2009 18:49

Forgivable loans....what's that all about ....take real cheap loans and then don't pay them back ! Hope my mortgage company understands that when i do it

2 Monday, 09 November 2009 18:04

I don't blame Mercury Marine, .....after all, ......the pot was way too sweet to pass up.

I do feel sorry for the taxpayers who have had to "Buy" the jobs for their brothers and sisters.

1 Monday, 09 November 2009 17:24

Once again, America's corporate welfare state wins big, taxpayers lose big.

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