Orion Township (Michigan) bids $44M for GM Small Car Jobs

[adplusone]

Township offers automaker incentives to build small cars at Oakland County plant
Robert Snell / The Detroit News

Orion Township has offered General Motors Corp. a $44 million deal to build its new small car there instead of in Wisconsin or Tennessee, a bold bid to stem the loss of auto industry jobs in a state battered by manufacturing losses.

Township officials are offering a 100 percent tax break on new machinery and equipment for up to 12 years, a deal that likely will be sweetened by a grant from the Michigan Economic Growth Authority, township Supervisor Matthew Gibb said. The township is working in conjunction with officials from the Michigan Economic Development Corp. to finalize an incentive package.

The township is willing to forgive $44 million in future tax revenue in hopes of preserving the $2.7 million GM pays annually in local taxes.

"It's a monster offer," Gibb said. "I struggled with it because we're talking about funds and public money is so tight for everybody. But if the plant closes, we don't get any tax revenue. I'd rather have the jobs and ancillary business for our small suppliers and big suppliers and party stores and everything else."

GM said it will make a site selection this month.

Its production goal is 160,000 vehicles annually, and it plans to add 1,200 jobs for the new small car plant.

(more at link)

http://www.detnews.com/article/20090613/AUTO01/906130321/Orion-bids-$44M-for-GM-jobs

[civilzues]

did that moron really say 'for the party stores too'? I love this state!

[ausrutherford]

Hmm, Gm wanted 200m...so i dont see it happening.

[dindak]

GM looks like it might make money on these little cars after all with all these tax breaks!

[oudidntkn0w]

For those who dont live in Michigan, a "party store" (in michigan) is a term used to describe a convenience store that sells beer, liquor, pop (soda), etc. They are probably saying that plant workers like to drink lol

Ive gone to other states and asked where a party store was and they thought I was looking for a ballons ughh

[Coloradokid]

Originally Posted by ausrutherford

Hmm, Gm wanted 200m...so i dont see it happening.

The $44 Million is just from the township. The state of Michigan was given $2 billion the other day to attract projects like this.

[johnny smallblock]

They're basically giving up all their tax revenues to keep people employed.

[cincygoblue]

Originally Posted by johnny smallblock

They're basically giving up all their tax revenues to keep people employed.

And by keeping people employed, hopefully stabilize housing prices. This whole area is dying.

[jorgesalazar521@msn.com]

Originally Posted by dindak

GM looks like it might make money on these little cars after all with all these tax breaks!

honestly i was thinking the only way was in mexico to make a buck on small car
thinking just paying 3-5 dollars an hour if that much!!!! would brimg it on with a small profit----from my expirience of gm for years

[V8GMT360 Guy]

Originally Posted by oudidntkn0w

They are probably saying that plant workers like to drink lol

You mean you never figured out where GM's build quality problems came from?

[scout62]

Originally Posted by oudidntkn0w

For those who dont live in Michigan, a "party store" (in michigan) is a term used to describe a convenience store that sells beer, liquor, pop (soda), etc. They are probably saying that plant workers like to drink lol

Ive gone to other states and asked where a party store was and they thought I was looking for a ballons ughh

Basicly every convenience store here has that stuff.

[iluvcamaros]

Doesn't (soon to be "didn't") Orion build the G6 and to a lesser extent the Malibu, and before that H/G Body LeSabre, Park Avenue, Bonnie, & Aurora? If so I think that is where my parents LeSabre came from. I know Hamtramck or whatever is the only H/G/K body plant now.

Party store? Really? I knew Yankees used the word "Pop" to describe things other than music but party store is a new one. Ya'll be talkin' kinda funny.

[kpc655]

Originally Posted by adplusone

Township offers automaker incentives to build small cars at Oakland County plant
Robert Snell / The Detroit News

Orion Township has offered General Motors Corp. a $44 million deal to build its new small car there instead of in Wisconsin or Tennessee, a bold bid to stem the loss of auto industry jobs in a state battered by manufacturing losses.

Township officials are offering a 100 percent tax break on new machinery and equipment for up to 12 years, a deal that likely will be sweetened by a grant from the Michigan Economic Growth Authority, township Supervisor Matthew Gibb said. The township is working in conjunction with officials from the Michigan Economic Development Corp. to finalize an incentive package.

The township is willing to forgive $44 million in future tax revenue in hopes of preserving the $2.7 million GM pays annually in local taxes.

"It's a monster offer," Gibb said. "I struggled with it because we're talking about funds and public money is so tight for everybody. But if the plant closes, we don't get any tax revenue. I'd rather have the jobs and ancillary business for our small suppliers and big suppliers and party stores and everything else."

GM said it will make a site selection this month.

Its production goal is 160,000 vehicles annually, and it plans to add 1,200 jobs for the new small car plant.

(more at link)

http://www.detnews.com/article/20090613/AUTO01/906130321/Orion-bids-$44M-for-GM-jobs

It makes sense to move the production away from Michigan (long term) due to the high union concentration here. But now that the union and Gov't has so much influence..they may take the worse business deal to ensure union jobs are saved.