Creating permanent jobs sure is expensive!
In what appears to be a somewhat controversial move, the Obama administration is expected to award a $730 million loan to OAO Severstal, a Russian steel manufacturer that will use the funds to upgrade its Dearborn, Mich., factory. The upgrade, according to sources that include Democrats Representative John Dingell and Senator Debbie Stabenow, is needed so Severstal can help U.S. automakers develop and build more fuel-efficient advanced technology vehicles.
Indeed, Severstal does supply various steel products to the Detroit Three but there was no word on what types of new advanced steel products the company will supply with the award. Nor what new technologies will be employed. The loan is expected to create 2,500 construction jobs and 260 permanent jobs when the upgrade is completed.
$730 million divided by 260 resulting permanent jobs = $2,807,692.
Creating jobs via government sure is costly!
Here is link to Detroit News coverage.
Beware of stories claiming larger numbers of jobs- temporary jobs aren’t the same as permanent employment.
Automotive Newswire contributed to this story.