Wednesday, March 17, 2004
Plant Upgrades Would Spur $299 Million Investment in Warren Facility
Governor Jennifer M. Granholm announced Tuesday that assistance from the Michigan Economic Development Corporation (MEDC) has been approved to attract new investments by General Motors that could retain a total of 2,241 Michigan jobs, including at least 518 jobs at the company's Warren Transmission facility.
The GM project is one of two approved Tuesday by the MEDC, which combined would create or retain a total of 2,886 jobs for Michigan workers. The other project is a new facility for Dr. Schneider Automotive Systems in Brighton.
If GM approves of the $299 million project, it would upgrade production facilities at the Warren plant to accommodate the manufacture of a new six-speed front wheel drive transmission.
According to Granholm, the potential of a major investment by GM in Warren on the heels of the company's groundbreaking last week of a new, $800 million plant in Lansing is a positive sign of manufacturing growth in the state.
"Michigan continues to fight aggressively in the global arena to retain manufacturing jobs," Granholm said. "The incentive package approved today puts us very close to sealing the deal and ensuring that these jobs stay in Michigan."
In her 2004 State of the State address, Governor Granholm announced a focused "seven road" plan for achieving a powerhouse economy. So far this year, the Governor and the MEDC have announced the creation or retention of approximately 4,871 jobs as a result of targeted assistance provided by the MEDC.
General Motors has other transmission sites that it is considering for the project. The Single Business Tax credit offered today, worth approximately $10.4 million over the next 20 years was offered to help convince the company to invest in the Warren facility.
"We are considering the Warren site because the plant has worked hard to stay competitive and provide high-quality products," said GM Manufacturing Manager, Kenneth Dosenbach. "We would like to continue to partner with the state on retaining manufacturing jobs in Michigan and appreciate the support they are providing in addition to the city of Warren's strong show of support last week."
The city of Warren recently approved a 12-year abatement of the company's new real and personal property taxes, valued at $19.6 million, to further support the project.
An economic analysis conducted by the University of Michigan estimates that the project will result in a net state revenue gain of more than $213 million. The analysis also indicates that $2.9 billion in personal income would be retained by Michigan workers over the life of the credit.
"Continuing to retain and create manufacturing jobs is job one for Michigan," said MEDC President and CEO Don Jakeway. "The tax credits awarded today are just part of the collaborative effort put forth by the community and the workforce to help make this investment a reality."
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.
General Motors Powertrain - Warren
(All estimates in 2004 dollars)
|TOTAL JOBS CREATED||2,241|
|NET POSITIVE STATE REVENUE IMPACT||$213,656,000|
|Personal Income Generated Over|
Life of the Tax Credit Agreement