Economy, Auto

GM to Reinvest in Michigan Plants

GM to Reinvest in Michigan PlantsGM to Reinvest in Michigan Plants

General Motors plans to invest $356.4 million in three Michigan plants, part of a pact with the governor’s administration to cap the value of state business tax credits it receives.

So far, $263 million have been earmarked  for a future engine program at Flint Engine Operations, retaining roughly 410 hourly and salaried workers, Auto News America reports.

Another $50 million have been designated for driveline components at Saginaw Metal Casting Operations, keeping 68 jobs in total.

On top of that, $43.4 million are earmarked for powertrain components at Grand Rapids Operations, which will save 15 jobs and create 55 positions. The company did not disclose information about the new engine programs or vehicles.

The $356 million investment adds to $5.4 billion that GM announced last spring in factory upgrades planned over three years.

GM is the last of the Detroit 3 automakers to negotiate a limit on the Michigan Economic Growth Authority credits first awarded in 2009. The state did not release the value of the cap.

In June, the state reached a deal with Ford that caps the value of its tax credits at $2.3 billion while requiring the carmaker to spend $3.1 billion. Fiat Chrysler’s agreement followed in November, which limits its MEGA credits to $1.7 billion and requires a $1 billion investment.