Tuesday, March 22, 2005
Michael Shore, MEDC
Automaker to Invest $506 Million in Sterling Heights Plant
Governor Jennifer M. Granholm joined company, labor and government officials today to announce that DaimlerChrysler will invest more than $506 million to retool and improve its stamping and assembly operations in Sterling Heights. The project will retain a total of 20,782 Michigan jobs, including 5,123 directly by the company. An incentive package recently offered by the Michigan Economic Development Corporation helped convince DaimlerChrysler to reinvest in Michigan rather than other competing sites in North America.
"DaimlerChrysler has been a long-time partner in Michigan's economic success," Granholm said. "Retaining these jobs will secure the creation of future advanced manufacturing jobs throughout the state and perpetuate our historical legacy of automotive leadership and innovation."
In February 2005, the MEDC approved a Single Business Tax credit valued at approximately $18.8 million as well as an Economic Development Job Training Grant valued at $500,000 to win the project. The city of Sterling Heights approved abatements of the company's new personal property taxes totaling more than $17.8 million for the stamping and assembly facilities.
"DaimlerChrysler is proud of its partnership with the State of Michigan," said Tom LaSorda, Chief Operating Officer of the Chrysler Group. "The investment we're announcing today is a true testimonial to the Governor's initiatives to create a pro-business environment in the state of Michigan. Under her leadership, we're moving toward a truly competitive business climate. This will benefit our employees, our customers, the city of Sterling Heights, and the state of Michigan."
A University of Michigan economic analysis estimates that 15,659 indirect Michigan jobs will be retained as a result of increased economic activity associated with DaimlerChrysler's investment in addition to 5,123 jobs retained directly. The project is also expected to generate more than $6.5 billion in personal income for Michigan workers over the life of the tax credit.
"With many states and countries courting automotive manufacturing investments, we are working extra hard to ensure the jobs of Michigan workers," President and CEO Don Jakeway said. "Because of the intense competition, it is gratifying to know that DaimlerChrysler is continuing to make major investments in the state."
Headquartered in Auburn Hills, DaimlerChrysler is a leading global auto manufacturer with facilities in 17 countries. The company's automotive brands include Maybach, Mercedes-Benz, Chrysler, Jeep, Dodge, Freightliner and Sterling. DaimlerChrysler employs more than 362,000 worldwide, including 37,360 in Michigan.
In her 2005 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005 the Governor and the MEDC announced the creation or retention of more than 31,464 jobs as a result of targeted assistance provided by the MEDC.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.
(All estimates in 2005 dollars)
|TOTAL JOBS RETAINED||20,782|
|Personal Income Generated Over|
|Life of the Tax Credit Agreement||$6,576,577,000|