General Motors’ Orion, Michigan plant could be the frontrunner to build the automaker’s forthcoming U.S.-made small car as Orion Township has pledged $44 million towards the effort. GM announced earlier this month that its next-generation small car would be built in Michigan, Wisconsin or Tennessee.
In addition to the $44 million offer, Orion Township is also offering GM a 100 percent tax break on all new equipment and machinery for 12 years. The Michigan Economic Growth Authority will likely sweeten the pot with grant money.
“It’s a monster offer,” Orion Township Supervisor Matthew Gibb told The Detroit News. “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.”
The re-opening of the Orion plant would secure about 1,200 jobs.
Although the Orion offer seems like a big number, it is far less than the amount GM requested from the state of Tennessee to re-open its Spring Hill facility. GM told Tennessee officials it would take $200 million to secure small car production at the Spring Hill plant.
06/16, 12:00 PM
posted by:
05Z88Path
GM stop blackmailing Townships/cities/states! Just build your Honda Fit on steroids look-a-like already and stop all this political maneuvering.
06/16, 12:08 PM
posted by:
bigs4610
Orion needs it bad.
06/16, 12:44 PM
posted by:
iluvamcars
Path, that was useless and immature.
06/16, 1:10 PM
posted by:
05Z88Path
@iluvamcars
I’m sorry…what would you like me to call it? GM is basically telling municipalities that unless they can fork over millions of dollars then they are not going to reopen plants in their neighborhood. Right…sorry how immature of me to point out the blatant truth…
06/16, 1:55 PM
posted by:
CADDY-V
path:
Every car company does that. I think Walmart is the best at it after they get millions they put the small shops out of business.
06/16, 2:10 PM
posted by:
leftwingagenda
yeah, i’m afraid gm is not an exception here, it’s the business rule…whether it’s incentives, or legal loopholes, businesses locate where it’s most advantageous, and the localities are happy to have the businesses there…happens all the time, like credit card companies putting HQs in delaware due to state laws that gave them more flexibiilty (if i am remembering my facts correctly)…
06/16, 2:55 PM
posted by:
bd394
Just because Walmart does it, doesn’t make it right.
06/16, 3:22 PM
posted by:
Borat
Lefty, most of companies are registering in DE, as the most business friendly state. Does not mean crap, when they are ending up on government dole.