The US state is home to the Detroit three, so naturally the lawmakers have a fondness for the automotive business. The Michigan Strategic Fund has recently approved further tax exemptions for companies, spurring interest from GM and several auto suppliers.
The Michigan Strategic Fund just approved an amendment of the automaker’s global state tax credit, immediately followed by a General Motors announcement the company plans to invest up to $800 million in the state, creating in the process 1,750 new jobs. The modifications allows GM’s Warren Technical Center to rise the number of employees included in the state tax credit from 5,000 to 6,750.
“The $800 million in new investment will be the result of upgrading various facilities in Michigan in anticipation of future vehicle platforms and programs,” says a memo to the fund. “The 1,750 additional new jobs will be the result of the consolidation of various engineering functions from outside of Michigan to a site in Michigan.”
Auto suppliers, many hard hit during the last economic downturn, are also slowly returning to the state that houses the three major US automakers, with the lawmakers granting them various incentives to set up new businesses there. The grants range from $2 million going to Italy’s Brembo for a new factory to state tax credit for Chinese companies willing to invest in the US.