As part of an agreement with the State of Michigan, General Motors reports that it will invest more than $356 million in three GM plants, creating more than 50 jobs while helping to retain nearly 500 others.
The investment will support a new engine line in Flint as well as powertrain component production in Saginaw and Grand Rapids.
The Michigan investment announcement comes on the same day following an amended agreement between GM and the Michigan Strategic Fund under the Michigan Economic Growth Authority (MEGA) tax credit program.
As part of the agreement, which was approved by the Michigan Strategic Fund, GM will invest $1 billion in Michigan by 2030. Today’s announced investment of $356.35 million represents more than one-third of that amount.
Since 2009, GM has made investment commitments in Michigan of more than $9 billion. During this time period, GM has far exceeded its original investment commitment under the MEGA Agreement.
GM reports that its investment in Michigan and the corresponding job growth and retention has contributed to Michigan’s economic success since 2009.
“The agreement with GM on MEGA credits helps Michigan’s budget forecast. And today’s announcement that it is investing in Saginaw, Flint and Grand Rapids proves the company wants to retain a strong presence in Michigan,” says Michigan Governor Rick Snyder.
“The fact that GM is committing to invest $1 billion by 2030 here is even better news. It’s a globally competitive environment, and GM’s announcement shows it appreciates that Michigan is a Comeback State with a skilled work force and exciting expansion opportunities.”
GM’s Flint Engine Operations will receive $263 million for a future engine program. The investment retains approximately 410 hourly and salaried jobs at the plant.
An investment of $50 million for driveline component production at Saginaw Metal Casting Operations will retain 68 jobs.
Grand Rapids Operations will receive $43.35 million for powertrain components, paving the way for 55 new jobs while retaining 15.
“These investments will better position GM and its work force to produce high quality engines and components for customers who demand greater fuel efficiency and performance from our vehicles,’ says Bill Shaw, GM North America manufacturing manager.
Details pertaining to the engine programs and associated vehicles will be released at a later date.
“The membership and leadership of Region 1-D are excited about this investment in our area and our work force,” says UAW Region 1-D Director Gerald Kariem. “These investments were earned with the quality and skill our membership brings to their jobs every day, and we appreciate GM giving us the opportunity to continue to prove the UAW work force is world class. Congratulations, GM and UAW Locals 659, 668 and 167.”
GM’s announcement raises its U.S.-facility investment in 2015 to $7.1 billion, including $353.4 million announced recently in four other states: $127.4 million for engine components in Bedford, Ind.; $44 million for increased engine capacity in Bowling Green, Ky.; $82 million for productivity improvements at the Duramax diesel plant in Moraine, Ohio; and $100 million for engine components in Defiance, Ohio.