©2018 Michigan Economic Development Corporation

Governor Announces GM Powertrain Consolidation in Pontiac, Retention of Over 1,000 Jobs

Tuesday, July 13, 2004

Paul Krepps, MEDC
(517) 335-4590

Redevelopment Tax Credit Will Help Transform Site

Governor Jennifer M. Granholm announced today that a major project by General Motors will redevelop its Pontiac Campus, and retain over 1,000 Michigan jobs, as a result of assistance provided by the Michigan Economic Development Corporation (MEDC). The project will result in a $385 million investment in Pontiac, and includes construction of a 431,000-square-foot addition for testing labs and equipment.

A Brownfield Redevelopment Single Business Tax credit worth up to $25 million helped convince General Motors to consolidate in Michigan rather than at competing sites in North America. The credit will help the company offset the costs of redeveloping a site with groundwater and soil contamination.

"I commend General Motors for redeveloping this property in Southeast Michigan," Granholm said. "The addition of this new, state-of-the-art facility engineering and testing center will undoubtedly attract workers and new economic activity to this area."

In her 2004 State of the State address, Governor Granholm announced a focused plan for achieving a powerhouse economy. So far this year, the Governor and the MEDC have announced the creation or retention of approximately 23,344 jobs as a result of targeted assistance provided by the MEDC.

The GM redevelopment is one of seven major economic development projects the Governor announced today. In all, they are expected to create or retain a total of 5,987 Michigan jobs, including 3,543 directly by the companies.

GM Powertrain will consolidate four engineering centers and five test labs located in Ypsilanti, Romulus, Warren, Troy and Wixom to the revamped Pontiac campus. Cleanup cost of the future site of the expanded lab building is estimated at $11 million. The $385 million project will solidify the GM Powertrain global headquarters in Pontiac as an engineering and test center for many years. Existing manufacturing operations at the sites being consolidated will continue and GM will determine best use for non-manufacturing facilities affected.

In addition to the brownfield SBT credit of $25 million, GM is expected to receive an abatement of tax on new real and personal property from the city of Pontiac.

"GM appreciates the support and approval of the state on this tax credit to make this project most viable," said William K. Whitley, executive director of engineering operations and laboratories for GM Powertrain. "This project allows GM to be more efficient and competitive as we continue to consolidate our operations and it brings more high-tech, high-paying jobs to the city of Pontiac. We appreciate the state and city support and partnership as we move forward."

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.