GM wins tax breaks for Mich. projects
GM wins tax breaks for Mich. projects
Announcement planned for Flint project on Thursday
Automotive News | September 23, 2008 – 12:01 am EST
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DETROIT — The Michigan Economic Growth Authority board today granted General Motors more than $130 million in tax credits in a move to persuade the automaker to invest in the state for projects related to production of its upcoming Chevrolet Volt plug-in hybrid electric vehicle.
GM is mulling an $838 million investment into manufacturing plants and facilities in Michigan to bolster infrastructure needed to build its Chevrolet Volt, scheduled to come to market by 2010.
Part of the potential investment project includes constructing a new $326 million, 530,000-square-foot engine plant at a brownfield site in Flint, expected to retain 450 jobs.
GM’s Detroit-Hamtramck assembly plant, its metal stamping facility in Pontiac, technical center in Warren and an engine components factory in Bay City are all being targeted for new investments.
The MEGA board approved a $122.5 million state tax credit over 15 years for the overall investment and a $10 million brownfield tax credit for the Flint engine plant construction. The Michigan Economic Development Corp. recommended the MEGA board approve the credits.
The MEDC said it expects the projects to retain 14,380 jobs, including 3,723 at GM, and generate $644.3 million in state government revenue by 2023. Locally, the projects would retain 2,500 jobs in Detroit, 60 in Pontiac, 612 in Warren and 101 in Bay City.
But, GM is considering other sites outside the state for the investments.
To receive the tax credits, GM would have to retain at least 2,000 “qualified full-time employees” at the five sites. The company has a total of 21,718 employees at the sites currently.
Meanwhile, GM has called a press conference for Thursday, Sept. 25, in Flint. On hand will be GM CEO Rick Wagoner and Tom Stephens, powertrain group vice president. A GM spokesman would not say what will be announced.
