©2016 Michigan Economic Development Corporation

Governor Announces Assistance to Retain GM Jobs in Ypsilanti and Warren

Tuesday, April 18, 2006

Michael Shore, MEDC
(517) 335-4590

Automaker Considering Combined $407 Million Investment

Governor Jennifer M. Granholm today announced an incentive package approved by the Michigan Economic Development Corporation to encourage General Motors to invest up to $282 million in its Warren Transmission and $125 million in its Ypsilanti Transmission Operations instead of other out-of-state sites. If the projects are approved by the company, they will retain a total of 13,790 jobs in the state including up to 2,000 jobs directly by the Ypsilanti facility over the life of the tax credits.

The MEDC also supports a tax abatement valued at more than $4.9 million for the Warren Transmission facility. The city of Warren is also considering a 12-year local tax abatement that could be valued at more than $19.8 million to secure the project, which is expected to retain 300 jobs.

A University of Michigan economic analysis estimates that increased economic activity created by the investment in the Ypsilanti facility would save an additional 11,490 indirect Michigan jobs in addition to the up to 2,000 retained directly by the company. The project is expected to generate more than $16 billion in personal income for Michigan workers over the life of the tax credit.

The possible investment is one of five economic development projects the Governor announced today. In all, they are expected to create and retain a total of 14,297 Michigan jobs.

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MEDC President and CEO James Epolito said.

www.michigan.org.

The MEDC also supports a tax abatement valued at more than $4.9 million for the Warren Transmission facility. The city of Warren is also considering a 12-year local tax abatement that could be valued at more than $19.8 million to secure the project, which is expected to retain 300 jobs.

A University of Michigan economic analysis estimates that increased economic activity created by the investment in the Ypsilanti facility would save an additional 11,490 indirect Michigan jobs in addition to the up to 2,000 retained directly by the company. The project is expected to generate more than $16 billion in personal income for Michigan workers over the life of the tax credit.

The possible investment is one of five economic development projects the Governor announced today. In all, they are expected to create and retain a total of 14,297 Michigan jobs.

MEDC President and CEO James Epolito said.

www.michigan.org.


Economic Analysis
Summary Estimates
(All estimates in 2006 dollars)

TOTAL JOBS RETAINED

13,490

Direct

2,000

Indirect

11,490

NET POSITIVE STATE REVENUE IMPACT

$1,227,644,000

$34,694,000

Revenue Gain

$ 1,262,338,000

Average Wage

$1,066

Personal Income Generated OverLife of the 20-Year Tax Credit Agreement

$16,415,315,000

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