The race to land Volvo's first U.S. auto plant is heating up as the Swedish-based manufacturer nears its decision.
Volvo is scouting Georgia and South Carolina for a site to build a sprawling factory that would employ thousands.
The State newspaper reported that South Carolina lawmakers are paving the way for the state to borrow as much as $150 million to land the deal. The newspaper also reported that two key agencies called emergency closed-door meetings this week to discuss an economic development project.
Georgia officials have also taken steps to land the plant, including a mid-year budget approved by Gov. Nathan Deal that includes $40 million for state "deal-closing" funds, legislation that makes it easier for state agencies to buy vehicles made in Georgia and an overhaul of a state environmental commission that Deal has said could make it easier to land major projects.
Volvo is said to be examining numerous Georgia sites, including land along the coast near the Savannah and Brunswick ports, as well as at least one tract in the outskirts of metro Atlanta. The State newspaper reported that Volvo's search in South Carolina is focused on a site in Berkeley County, which sits just north of Charleston.
Landing Volvo would be a landmark victory for either state, though it would come with a price. The automaker would likely require a bounty of incentives, including grants, tax credits, infrastructure improvements and job training assistance.
While no state leaders officially have said Volvo is considering locating in South Carolina, legislators have dropped the automaker's name with increasing frequency.
As the Senate Finance Committee was debating a proposed state borrowing bill Wednesday, state Sen. Ray Cleary, R-Georgetown, asked if the bond proposal included the $125 million to $150 million that the state would need to borrow to land Volvo.
State Senate President Pro Tempore Hugh Leatherman, the Florence Republican who also heads the Finance Committee, responded that GOP Gov. Haley had said Tuesday the state would not need to borrow to pay for incentives for Volvo.
The Senate borrowing plan includes money for colleges, technical schools and state armories, Leatherman said. "There's no economic incentives in this bond bill."
Cleary called Haley's willingness to borrow to lure Volvo — but not colleges and technical schools — a double standard.
"I'm interested that we can bond for bringing industry here, but we can't bond for the future of our children for schools and technical colleges that they can actually work at Volvo and Boeing," Cleary said afterward.
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