March 14, 2007 — The Michigan Economic Development Corp., a partnership of state and local governments, will provide tax credits to General Motors Corp. as an incentive for the automaker to proceed with capital-improvement projects worth an estimated $500 million in the state. One of those projects could be an expansion of GM Powertrain's Saginaw Metal Casting plant, which GM has confirmed is being considered.
General Motors, which reported a $2-billion loss for 2006, but a profitable fourth quarter due to cost-cutting initiatives, is non-committal on its plans. However, the Saginaw project, and another at GM's Orion Assembly plant, are reportedly budgeted at $225.5 million. A variety of other projects would cost about $274.5 million, including Delphi Corp.'s consolidation of R&D, engineering, and business operations at Auburn Hills, MI.
"There is no specific timeframe when the plan will be completed or when the final decision will be made," Ben Ippolito, GM Powertrain manager of communications told The Saginaw News.
Michigan will make available a state tax credit valued at $6.6 million over 10 years, according to the MEDC. Also, the City of Saginaw will offer assistance through its local Workforce Development Board, and Orion Township has proposed a local tax abatement valued at $70,000.
“We are continuing to fight to keep the automotive manufacturing jobs we have in Michigan as we work to create new jobs by diversifying our economy,” stated Michigan Governor Jennifer Granholm. “These investments will help anchor these companies presence in these communities and in the state, and ensure these good-paying jobs stay here in Michigan.”