Report: Detroit automakers pledge $2B investment after Michigan passes tax incentives

[wickedstangs]

<p>Filed under: <a href="http://www.autoblog.com/category/government-legal/" rel="tag">Government/Legal</a>, <a href="http://www.autoblog.com/category/chrysler/" rel="tag">Chrysler</a>, <a href="http://www.autoblog.com/category/ford/" rel="tag">Ford</a>, <a href="http://www.autoblog.com/category/gm/" rel="tag">GM</a>, <a href="http://www.autoblog.com/category/earnings-financials/" rel="tag">Earnings/Financials</a></p><a href="http://www.freep.com/article/20101027/BUSINESS01/10270401/1331/Chrysler-Ford-lead-tax-breaks"><img vspace="4" hspace="4" border="1" align="right" alt="Detroit Three" src="http://www.blogcdn.com/www.autoblog.com/media/2010/10/big-three.jpg" /></a>The Michigan Economic Growth Authority has approved a series of tax incentives for <a href="http://www.autoblog.com/make/ford">Ford</a> and <a href="http://www.autoblog.com/make/chrysler">Chrysler</a> and expanded previously approved incentives for <a href="http://www.autoblog.com/make/gm">General Motors</a>. Between a tax break engineered to help GM build a 900-job electric-vehicle battery facility in Warren and another to keep 4,000 people at work in the company's Renaissance Center headquarters, The General is looking at a considerable stack of incentives. According to <em>The Detroit Free Press</em>, the company has been granted a total of $757 million in potential tax breaks that hinge on the automaker keeping a total of 30,000 people at work.<br />
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But that's a drop in the bucket compared to what Ford and Chrysler walked away with. Ford was given a 15-year, $909 million credit. As part of that deal, FoMoCo has to retain 28,000 workers. Around $414 million of that tax break is geared toward helping Ford pump $850 million in to a slew of plants spread around Michigan.<br />
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Chrysler, meanwhile, took the incentive cake. The smallest of the big three was awarded $1.3 billion in incentives over 20 years geared at keeping 20,000 people at work. The tax breaks surround everything from upgrades to the company's Sterling Heights facility to work required to prepare its Dundee facility to manufacture the <a href="http://www.autoblog.com/category/fiat/">Fiat</a> 1.4-liter <a href="http://green.autoblog.com/2009/03/07/geneva-2009-fiat-unveils-new-multiair-engine-line/">Multiair</a> four-cylinder.<br />
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All told, the tax breaks will reportedly allow the big three to invest a combined $2 billion in their respective Michigan facilities.<br />
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[Sources: <a href="http://www.freep.com/article/20101027/BUSINESS01/10270401/1331/Chrysler-Ford-lead-tax-breaks">The Detroit Free Press</a>, <a href="http://www.detnews.com/article/20101026/BIZ/10260413/1148/auto01/Approved-tax-incentives-for-Detroit-automakers-allow-$2B-investments">The Detroit News</a>]<p style="padding:5px;background:#ddd;border:1px solid #ccc;clear:both;"><a href="http://www.autoblog.com/2010/10/28/report-detroit-automakers-pledge-2b-investment-after-michigan/">Report: Detroit automakers pledge $2B investment after Michigan passes tax incentives</a> originally appeared on <a href="http://www.autoblog.com">Autoblog</a> on Thu, 28 Oct 2010 08:30:00 EST. Please see our <a href="http://www.weblogsinc.com/feed-terms/">terms for use of feeds</a>.</p><h6 style="clear: both; padding: 8px 0 0 0; height: 2px; font-size: 1px; border: 0; margin: 0; padding: 0;"></h6><a href="http://www.autoblog.com/2010/10/28/report-detroit-automakers-pledge-2b-investment-after-michigan/" rel="bookmark" title="Permanent link to this entry">Permalink</a>&nbsp;|&nbsp;<a href="http://www.autoblog.com/forward/19691406/" title="Send this entry to a friend via email">Email this</a>&nbsp;|&nbsp;<a href="http://www.autoblog.com/2010/10/28/report-detroit-automakers-pledge-2b-investment-after-michigan/#comments" title="View reader comments on this entry">Comments</a>


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