Orion Twp. OKs tax abatement on potential GM plant expansion

[Ming]

Orion Twp. OKs tax abatement on potential GM plant expansion

February 22, 2007
By KATIE MERX and FRANK WITSIL
Free Press Staff Writers


Orion Township's board this week took a step toward securing a $156.5 million investment by General Motors that would protect 964 auto jobs and secure an additional 104 positions at GM Orion Assembly.

The northern Oakland County township on Tuesday night approved a 50% tax abatement for the $55 million of the investment that would be taxable.
The abatement would last for 12 years plus a three-year construction period.

A GM report presented to Orion Township officials said the township would still receive an additional $5 million in taxes over the period of the abatement.

That’s equivalent to the amount Orion Assembly paid in real and property taxes last year, according to GM documents.

Workers at the plant said the tax abatement would pave the way for the plant to get a new product.

More: http://www.freep.com/apps/pbcs.dll/a...ESS01/70222059

[CRBoyd91]

This sounds good. Orion is where the Lambda's are built right?

[ZRock]

Originally Posted by CRBoyd91

This sounds good. Orion is where the Lambda's are built right?

Nope, they're built in Delta Township, over near Lansing.

[CobaltSScrazy]

Orion builds the G6! Thats my home town, el lago del Orion...Lake Orion!!!

CobaltSScrazy

Good Save My Communities Jobs!

[spaz]

i heard a rumor that Orion wil be using this investment to enable itself to produce the new malibu in addition to the G6.

[Kappa]

Originally Posted by spaz

i heard a rumor that Orion wil be using this investment to enable itself to produce the new malibu in addition to the G6.

Could be possible, but maybe not yet. But maybe sometime after the new Malabu is in production, the G6 could become a sportier, tigher version with the coupe and vert still avaible but built will better quality overall like the Aura and new bu'. Might not happen, just an expectation if the G6 doesnt go RWD soon.

[ACross32]

Originally Posted by CobaltSScrazy

Orion builds the G6! Thats my home town, el lago del Orion...Lake Orion!!!

CobaltSScrazy

Good Save My Communities Jobs!

Representin' O-town!

[camaro_freak]

about time states start making some deals for the home team!

[hymeballs]

We at Orion are baffled by the '964 jobs saved' number the newspaper stated. No one knows for sure what they meant by that or whom they were speaking of . The best guess was the plant going down to one shift, but if that happened they might have well closed it as GM wants higher capacities in all facilities.

We are slated to run the Malibu overflow but not for awhile. We will build out the G6 until it redesigned by Holden. There are rumors that we will soley build the Malibu in the future by running 3 shifts and Fairfax getting the Buick EP II and keeping the Aura. Again, these are rumors, but it was a nice feeling at work to have some positive news. We do know that we have built engines for the new Malibu pilots. A question I have for anyone out there is what does the new Malibu use for its base engine? Is there a four cylinder version? It sounds like we might be building alot of these in future months....unless its just a response to higher gas prices. I doubt its because of fleet sales since GM was cutting back on those.

[asim]

So maybe GM is building something else here along with the G6, or something completely different soon? I don't think that G6 demand has skyrocketed that they would need to expand the plant. It probably is going to be for the new Epsilon 2 platform, maybe the plant is for a Buick and Pontiac version.

[wolverine]

My understanding is that we will be building overflow for the Malibu if sales are such that Fairfax cannot meet demand. The reality for Orion, IMHO, is that it needs a new paint shop or it is going to be shuttered by 2011. The idea that we need a new paint shop before we can get anything but low volume work was articulated by one of our paint shop top management dogs a while ago.

[Coloradokid]

Originally Posted by hymeballs

We at Orion are baffled by the '964 jobs saved' number the newspaper stated. No one knows for sure what they meant by that or whom they were speaking of . The best guess was the plant going down to one shift, but if that happened they might have well closed it as GM wants higher capacities in all facilities.

We are slated to run the Malibu overflow but not for awhile. We will build out the G6 until it redesigned by Holden. There are rumors that we will soley build the Malibu in the future by running 3 shifts and Fairfax getting the Buick EP II and keeping the Aura. Again, these are rumors, but it was a nice feeling at work to have some positive news. We do know that we have built engines for the new Malibu pilots. A question I have for anyone out there is what does the new Malibu use for its base engine? Is there a four cylinder version? It sounds like we might be building alot of these in future months....unless its just a response to higher gas prices. I doubt its because of fleet sales since GM was cutting back on those.

The article in the Free Press stated that the construction would take place over a period of three years starting late this year. I am guessing that your plant will build the Malibu early next year, the Buick LaCrosse replacement around 2009, and perhaps a rear-wheel-drive G6 in 2010 (even though it is being designed by Holden).

[Coloradokid]

Originally Posted by wolverine

My understanding is that we will be building overflow for the Malibu if sales are such that Fairfax cannot meet demand. The reality for Orion, IMHO, is that it needs a new paint shop or it is going to be shuttered by 2011. The idea that we need a new paint shop before we can get anything but low volume work was articulated by one of our paint shop top management dogs a while ago.

The investment is supposed to include modifications to the paint shop.

[wolverine]

[quote=Coloradokid]The article in the Free Press stated that the construction would take place over a period of three years starting late this year. I am guessing that your plant will build the Malibu early next year, the Buick LaCrosse replacement around 2009, and perhaps a rear-wheel-drive G6 in 2010 (even though it is being designed by Holden).[/QUOT


Thanks for the comments, "Kid". I had first read of the investment possibilty in an article from "The Oakland Press" newspaper. That article did not go into as much detail as the Detroit Free Press article did. After reading your above comments I went to the link provided by "Ming" and became better informed. Again, thanks for the comments, "Kid". I hope all of this comes to fruition.

[akbar]

Originally Posted by spaz

i heard a rumor that Orion wil be using this investment to enable itself to produce the new malibu in addition to the G6.

I think Lake Orion will build the Malibu overflow. Here is my fantasy prediction of Malibu sales –
Malibu sold about 150000 in 2006 – lets say the new and much superior Malibu retains about 80% of those sales that is about 120000
The new Malibu which will be as big as the Impala with superior interior/exterior design, superior mechanics, better lease rates because of high residuals etc will take away atleast 50% of those sales. Impala sold 285000 in 2006 - so that is about 142000.
Again the new Malibu which will be superior to G6 in every way will take away about 40% of those sales – so that is about 62000.
Let’s assume 0%conquest from the lacrosse and Aura because of different clientele.
My estimate of non-GM mid size sales is about 1.3 million a year – lets optimistically assume assume that the Malibu which will be better than everyone (except may be the 08 Accord) can conquer about 10% of those sales – thats about 130000.
So we have a total of 454000 sales in its first full year of sales – without counting the conquest from non-midsize cars. Add to it about 60000 of Aura sales and we are lookin at a production volume of over 500000. So obviously GM needs 2 plants to meet the demand. The expansion at Lake Orion will probably do the Malibu overflow starting next year and then continue retooling for Epsilon 2 for future Buicks/Aura.