GM, Delphi consider $500M Michigan investment package

Governor Jennifer M. Granholm on March 13 announced that the Michigan Economic Development Corporation is providing assistance to encourage General Motors to invest $225.5 million in its Orion Assembly and Saginaw Metal Casting plants, and an additional $274.5 million at other Michigan sites, over the next two to three years. Delphi plans to invest $42 million at its Auburn Hills location. Together the projects are expected to retain 8,715 jobs and generate $542 million in new capital investment.

“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,” Granholm said. “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.”

The projects approved for tax credits are:

• General Motors is considering a potential investment of approximately $225.5 million in Orion Assembly for a new vehicle product and Saginaw Metal Casting for a new casting program. In addition, GM is considering future investments of approximately $274.5 million in other projects in Michigan over the next two to three years. Combined, the projects would retain 6,711 jobs including 880 directly by the company. A state tax credit valued at $6.6 million over 10 years helps ensure that the plants remain open as GM looks to achieve cost savings and efficiencies. To support the potential projects, Orion Township has proposed a local abatement valued at approximately $70,000 and the city of Saginaw will provide assistance through the local Workforce Development Board.
• Delphi Corporation plans to invest $42 million to consolidate R&D, engineering and business operations to a single location in Auburn Hills. The project will retain 2,004 jobs including 910 directly by the company. A state tax credit valued at $12.1 million over seven years helped make the case for a Michigan location rather than competing sites in Mexico, China and Poland. Auburn Hills has proposed an eight-year abatement worth approximately $70,000 to support the project.           

“We are gratified by this support of our efforts to win new investment and keep good-paying jobs in Michigan,” MEDC president and CEO James C. Epolito said. “We have the right talent and climate to help companies compete and thrive in today’s global economy.”

The projects are two of 10 approved for economic incentives announced by the governor. In all, they are expected to create and retain 14,358 Michigan jobs.

In her 2007 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005, the governor and the MEDC have announced the creation or retention of more than 181,000 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. For more information on the MEDC’s initiatives and programs, visit the Web site at www.michigan.org.