The FINANCIAL — General Motors will invest more than $356 million in a new engine line in Flint and driveline and powertrain components in Saginaw and Grand Rapids, creating more than 50 jobs and helping to retain nearly 500 positions.
The Michigan investment announcements come on the same day as an amended agreement between GM and the Michigan Strategic Fund under the Michigan Economic Growth Authority (MEGA) tax credit program. As part of the amended agreement, which was approved by the Michigan Strategic Fund today, 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, according to GM.
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’s substantial investment in Michigan and the corresponding job growth and retention has contributed 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,” said Gov. 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.”
Today’s announcement includes:
Flint Engine Operations: $263 million for a future engine program. The investment retains approximately 410 hourly and salaried jobs at the plant.
Saginaw Metal Casting Operations: $50 million for driveline components. The investment retains 68 jobs.
Grand Rapids Operations: $43.35 million for powertrain components. The investment creates 55 and retains 15 jobs.
“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,’ said 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,” said 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.”
Today’s announcement raises GM’s announced U.S.-facility investment in 2015 to $7.1 billion, including $353.4 million announced recently in four other states:
Bedford, Ind.: $127.4 million for engine components
Bowling Green, Ky.: $44 million for increased engine capacity
D-Max/Moraine, Ohio: $82 million for productivity improvements
Defiance, Ohio: $100 million for engine components