GM commits to invest $1 billion in Michigan by 2030
Automaker, state agree to cap tax credits, but won't specify amount
DETROIT – General Motors on Tuesday said it would invest $1 billion in its home state by 2030.
As part of the commitment, the automaker said it would be putting $356 million into a new engine line in Flint and driveline and powertrain components in Saginaw and Grand Rapids, creating more than 50 jobs and helping to retain nearly 500 positions.
- Flint Engine Operations: $263 million for a future engine program. The investment retains approximately 410 hourly and salaried jobs at the plant.
- Saginaw Metal Casting Operations: $50 million for driveline components. The investment retains 68 jobs.
- Grand Rapids Operations: $43.35 million for powertrain components. The investment creates 55 and retains 15 jobs.
“These investments will better position GM and its work force to produce high quality engines and components for customers who demand greater fuel efficiency and performance from our vehicles,’ said Bill Shaw, GM North America Manufacturing Manager.
Since 2009, GM has made investment commitments in Michigan of more than $9 billion.
Michigan, GM agree to cap tax credits
GM and Michigan Strategic Fund under the Michigan Economic Growth Authority (MEGA) have agreed to cap the state's liability for lucrative tax credits but won't specify the amount.
The agreement was approved Tuesday by Michigan's economic development board. It's the latest deal to help Gov. Rick Snyder and future administrations better budget for billions in tax incentives authorized when Michigan was hemorrhaging jobs.
GM qualifies for an annual tax credit for retaining up to nearly 35,000 jobs, good through 2029. Under the agreement, the automaker can claim a maximum level of tax credits but the company refused to make that figure public, saying it is proprietary.
Michigan reached pacts earlier this year with Ford and Fiat Chrysler, which released their cap levels.
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