Germany: Give us back our $60.5 million, Nokia
The German state of North-Rhine Westphalia wants its €41.3 million (about $60.5 million) back. The reason? Germany wants the corporate subsidies given to Nokia back in 1998 and 1999 for its plant in Bochum. The very plant Nokia is about to shut down at the cost of some 2,300 German jobs. Nokia responded to Germany's demand saying that it is "astonished" and "Based on the facts available to the company and Deutsche Bank, its advisor throughout the entire period, both parties feel strongly that such an attempt is without merit." Of course, Nokia won't hurt too badly if forced to pay out. Nokia's new Romanian plant is expected to cost just a tenth of the Bochum plant to operate. Nokia also posted a staggering $2.6 billion in profit from the last quarter alone. The German authorities know a cash cow when they see it.Read -- Reuters' take
Read -- Nokia response in full
Reader Comments (Page 1 of 1)
Fernando @ Feb 6th 2008 11:45AM
They should give the money, it's not much, and it's not worth the bad publicity.
FyreStarrter @ Feb 6th 2008 7:23PM
I believe with the impact that they are making on the German economy in that area that they SHOULD be required to refund those funds back to the state. Corporations would think TWICE about just up & irresponsibly shutting down operations if they had some type of fiscal or financial accountability!
Gib @ Feb 6th 2008 10:05PM
But seriously, who could blame Nokia. If they are gonna save that much $ by moving to romania, i wouldn't hesitate one second. Adios Germany! Aloha Romania!
chilko @ Feb 7th 2008 3:48AM
in fact the correct greeting is "salut romania"
:)
Gib @ Feb 9th 2008 11:32PM
haha, i have no idea ;)