Tuesday, November 30, 2004
Automaker Considering More Than $400 Million Investment
Governor Jennifer M. Granholm announced today that the Michigan Economic Development Corporation (MEDC) approved more than $28.2 million* in tax credits to encourage General Motors to expand its Flint Engine South plant and retool its Flint Truck Assembly plant. If the projects are approved by the company, this assistance would lead to more than $400 million in new investment and the retention of over 2,800 jobs at GM operations in Flint, rather than competing out-of-state sites.
"These potential projects will have a significant impact on Flint's economy and thousands of families in the community," Granholm said. "If approved, General Motors' projects will affirm the importance of my overall automotive strategy as we continue to target new investments in Michigan. Every time a company like GM invests hundreds of millions of dollars, you can be sure that the result will be the most modern, high-tech facilities and equipment needed in our 21st century economy."
With MEDC's approval of a Single Business Tax Credit, GM's potential investment in Flint will allow the company to retool the Flint truck plant for future truck production, as well as manufacture a new V6 engine.
GM has received an abatement of tax on new real and personal property from the city of Flint.
A University of Michigan economic analysis estimates that 8,055 indirect Michigan jobs would be retained as a result of increased economic activity associated with the Flint Engine South and Truck Assembly plant projects, in addition to the 2,862 jobs retained directly by the company. The projects are expected to generate more than $7 billion in personal income for Michigan workers over the life of the tax credit.
"It is encouraging to see that GM is considering a significant investment in Flint," said MEDC President and CEO Don Jakeway. "If approved, this investment would be a positive indication that manufacturing will remain a staple of our future economic success for many years to come."
Founded in 1908, GM has been the global automotive sales leader since 1931. The company has several facilities in Flint, including powertrain, truck assembly, warehousing and metal fabricating operations.
In her 2004 State of the State address, Governor Granholm announced her plan to make Michigan a global economic powerhouse in the 21st century. So far this year, the Governor and the MEDC have announced the creation or retention of approximately 44,076 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.
*adjusted for inflation
General Motors Flint Truck Assembly
(All estimates in 2004 dollars)
|TOTAL JOBS RETAINED||10,917|
|NET POSITIVE STATE REVENUE IMPACT||$517,722,000|
|Personal Income Generated Over||$7,099,687,000|