GM’s Orion Township Plant Offers $44 Million in Tax Breaks to Build Small Car

As General Motors looks for a plant to build a new small car, the Orion Township, Mich.,assembly plant is offering GM an incentive package worth $44 million to build the car there.

As of right now, GM is looking at using its Spring Hill, Tenn., Janesville,Wis., or Orion Township plants to produce a new small car. The two factories that don’t win the small car production are slated to be idled. Orion Assembly has around 3400 employees.

GM is looking for incentives to help decide where it will build the small car. Reportedly, GM was looking for a check in the area of $200 million instead of incentives, but none of the states or townships could write that check.

“They don’t care about tax credits and those other kinds of things,” said Tennessee Governor Phil Bredsen. “It certainly was a new look for me at how they’re approaching this thing, which is absolutely, ‘Tell me how big of a check you’re going to write.’ ” Bredsen said the state doesn’t have the kind of incentive money GM is looking for to keep the Spring Hill plant in the running.

Orion Township’s incentive package includes personal property tax abatement for 12 years and the city is offering to build a water storage facility on GM property that would save GM an estimated $250,000 annually on water bills. The storage facility is worth $8 million and the whole package is worth an estimated $44 million.

A letter to GM from Orion Township read: “In light of the strong loyalty of Orion Township to General Motors and this important facility, we believe these substantial offers of assistance are in the best interest not only our community but the entire state of Michigan.”

“Everybody conjectured it was between us and Spring Hill,” said Orion Supervisor Matthew Gibb. “We’re very optimistic because it’s such a unified effort. I’m optimistic.”

U.S. Representative Gary Peters, a Bloomfield Township Democrat, even launched a website — — to allow people to show their support for Orion Township’s efforts and to convince GM to build the car in its home state of Michigan.

Source: The Detroit Free Press