Wednesday, January 14, 2009

Vought Aircraft's Texas Promises, Will Carlyle Group Deliver?

The Carlyle Group's Vought Aircraft milked state and federal officials for $75 million in grants/earmarks. They pocketed $65 million in a land deal, which also reduced their state tax bite. Vought made various commitments in return for the money. BizJournals reported in 2005:

Rick Perry gave Vought $35 million from the state's Texas Enterprise Fund in return for the promise of adding 3,000 jobs to its existing work force of 3,350. Vought says it's added 811 employees so far.

The Texas target is 6,350 jobs by 2009. How are they doing? Today BizJournals reported on a Nashville strike. (Ironically, Vought promised it would shutter the Tennessee operation but reneged.)

Vought has about 5,900 employees in nine U.S. locations and is 90 percent owned by Carlyle Group, a private equity firm based in Washington, D.C.

Vought could have all their employees in Dallas and fall short of their promise. What happens to $35 million in Gov. Rick Perry's corporate welfare? Stay tuned...