The remarkable recovery of the American auto industry continues with the announcement that the Big Three automakers will invest a collective $2 billion in plants in the state of Michigan, hiring at least 2,250 workers and ramping up production at those facilities.
This is part of a deal with the Michigan Economic Development Corporation to swap tax incentives for more investment:
Gov. Jennifer Granholm said this will be the largest MEGA grant day in the agency’s history, in dollars and in the number of jobs created and retained.
In many cases, she said, Michigan was competing with other states and countries. Ohio, for example, was courting Ford.
Ford’s tax incentives are worth $415 million over 15 years — but they replace three prior MEGA grants. The new umbrella amount represents a net gain of $200 million, Granholm said at the Ford Van Dyke plant in Sterling Heights on Monday.
The tax incentives, worth $1.3 billion for Chrysler over 20 years, are modeled after what the state gave GM for its Orion plant.
The MEDC says the tax incentives are contingent upon the number of jobs created or retained.