Friday, April 23, 2021

Youngkin's Jobs Record Questionable in Texas

Former Carlyle Group co-CEO Glenn Youngkin cited his business background as qualifications for him to serve as the Republican nominee for Virginia Governor. 

“It’s important to provide all Virginia citizens with the opportunity to pursue a career,” Youngkin said. “Carlyle started as a small company and has grown into a large company.”

“What I learned in the process is that if you make a false promise and don’t fulfill it … you don’t understand how to solve various problems … you won’t succeed as a business or leader. Let’s do it." 

Youngkin served as the Global Head of the Industrial Sector investment team from 2005-2008.  During this time Carlyle affiliate Vought Aircraft sent promised jobs from Texas to South Carolina.  It reclassified $35 million in Texas taxpayer funding from "operating" to "financing activities".

Vought employed 3,350 people in the Dallas area when the grant was awarded in 2004.  At the end of the six year period Vought employed 3,315 around Dallas-Fort Worth, a decrease of 35 jobs.  

The Carlyle affiliate had $35 million in public money for six years and cut 35 positions.  That's $1 million per job lost.  

Carlyle Group owned Vought Aircraft made promises to Texans which they failed to meet.  The question is how did Glenn Youngkin touch this jobs debacle in his various roles at Carlyle.  He was high enough, COO, CFO and Industrial Sector Chief to have touched this issue.

From 2011 until May 2014, Mr. Youngkin was Carlyle’s Operating Officer. From October


2010 until March 2011, Mr. Youngkin served as Carlyle’s interim principal financial officer. From 2005 to 2008, Mr. Youngkin was the Global Head of the Industrial Sector investment team.   

Vought needed capital in 2006 to ramp up Boeing 787 production (promised Texas jobs that went to South Carolina).  Surely Youngkin became aware of this situation as Vought needed more investment to adequately serve Boeing. 

Last October, Vought CEO Elmer Doty acknowledged that Vought was the highest-risk supplier on the 787 industry team. At the time, Doty attributed Vought's struggles to an internal liquidity crisis in 2006 that prevented the company from ramping up investment in the 787 programme at a sufficient rate.

In 2007 Doty told the Dallas Business Journal:

To his disappointment, Doty added in an April 17 interview with the Dallas Business Journal, expanding in Dallas is unlikely, as are plans to buy the old Naval Air Station from the U.S. Navy. So a $35 million cash grant in 2004 from Gov. Rick Perry's Texas Enterprise Fund most likely will be repaid

Three years before the grant period ended Carlyle knew they would not add Vought jobs in Texas.

Youngkin says he is about promises and jobs, yet his former employer and Texas Governor Rick Perry (R) have egg on their face in both arenas.  

At age 15 Youngkin got a job washing dishes in a diner in Virginia Beach, before he "worked his way up to flipping eggs."  

Glenn is still flipping.  Virginia voters beware, some may land on your face.