In April 2006, Michigan Governor Jennifer M. Granholm announced an incentive package approved by the Michigan Economic Development Corporation (MEDC) to encourage General Motors to invest up to $282 million in its Warren Transmission operation and up to $125 million in its Ypsilanti Transmission operation.
“We will work with General Motors to encourage them to take advantage of the great opportunity this grants provides to the company and the community,” Granholm said. “GM’s continued commitment to investing in Michigan and its workforce demonstrates that we will not concede new automotive investment and jobs to any other state or nation.”
The MEDC approved a Single Business Tax credit valued at more than $34.6 million over 20 years in an effort to win the company’s investment in the Ypsilanti facility. Ypsilanti Township has approved a 12-year tax abatement valued at $6.9 million to support the project.
The MEDC also supports a tax abatement valued at more than $4.9 million for the Warren Transmission facility. The city of Warren is also considering a 12-year local tax abatement that could be valued at more than $19.8 million to secure the project, which is expected to retain 300 jobs.
A University of Michigan economic analysis estimates that increased economic activity created by the investment in the Ypsilanti facility would save an additional 11,490 indirect Michigan jobs in addition to the up to 2,000 retained directly by the company. The project is expected to generate more than $16 billion in personal income for Michigan workers over the life of the tax credit.
“We are considering the Ypsilanti and Warren Transmission Operations because the facilities have continuously demonstrated their ability to stay competitive and provide high-quality products,” GM Manufacturing Manager Ken Dosenbach said. “GM appreciates the long-term business relationship that has developed over many years with the state of Michigan, the township of Ypsilanti and the city of Warren, and we look forward to building on those relationships in the coming years.”
