General Motors is reneging on a promise to create new jobs in Yuma, Arizona.
The Detroit-based auto manufacturer received a state grant to build a $100 million hot weather test track at the US Army’s Yuma Proving Ground. The grant required GM to create 140 high-paying jobs for Yuma County.
GM now plans to create only 95 positions, citing the economic downturn. The auto giant has negotiated with Yuma County to repay the $250,000 state grant.
Seventy of the new jobs will average $80,000 a year; the other 25 jobs will pay $20 an hour.
The secure test track facility will cover 2,400 acres. The army will be testing high-speed, heavy military vehicles, while GM will use the facility to test its consumer products. The test track replaces GM’s 55-year-old facility in Mesa, Arizona.