GM has been trying to decide where the Chevy Volt should be built. It has plans to build in Flint, Michigan, but asked the town and state to provide some incentives to offset the cost of building the $838 million investment in manufacturing plants and facilities.
The Flint City Council already approved a tax break for GM, and now they're goint to get a little bit more. The Michigan Economic Growth Authority (MEGA) board granted their wish and is willing to set $130 million in tax credits to motivate GM to build in Michigan.
GM's investment will cover a new plant in Flint ($326 million). The rest will go to the assembly plant in Detroit-Hamtramck, the metal stamping facility in Pontiac, technical center in Warren and an engine components factory in Bay City.
The board estimates the projects will retain 14,380 jobs and generate $644.3 million in state government revenue. There is a caveat to the deal. GM would have to retain 2,000 qualified full time employees at the five sites. That shouldn't be a problem since they already have 21,000 employees there.
GM is calling for a press conference on Sep 25 in Flint.
Source: Autonews
Wednesday, September 24, 2008
GM Gets Another Tax Break in Michigan for the Volt
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