GM, Ford, Chrysler To Invest $2 Billion, Add Jobs, In Michigan

With the help of heaps of state tax credits, Michigan’s Big 3 car makers — Ford, GM and Chrysler — will be adding over 2,200 jobs and $2 billion to that state’s economy over the next few years.

Ford announced plans to invest $850 million and add around 1,200 jobs at four plants in Michigan between now and 2013. But not all the added jobs will be new hires; the Detroit News reports that 190 Ford workers are awaiting recall to their former gigs while other positions will likely be filled by workers from overstaffed plants elsewhere.

Next up is Chrysler, which is sinking $1 billion into its Sterling Heights Assembly Plant and the Global Engine Manufacturing Alliance plant in Dundee. There are no new jobs expected immediately at either of these plants, but Sterling Heights may add 900 workers to a second shift next spring if needed.

And then there’s GM whose $152 million investment in Michigan includes $112 million and 900 jobs at the Warren Technical Center. The remaining $40 million is expected to go to its Brownstown Township plant that assembles battery packs for the Chevrolet Volt. 150 jobs are expected to be added at that plant.

The state’s Economic Development Corporation is also reviewing a request from Hyundai to upgrade the electric power infrastructure in Superior Township, Michigan.

Big 3 to invest $2B in Michigan [Detroit News]

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  1. Oranges w/ Cheese says:

    Yaaay!

  2. pop top says:

    This is really great news to hear as a Michigander. Driving around my town and seeing the enormous lots where the plants once stood is really depressing. They’re like vast concrete deserts with rusted metal tumbleweeds. Some of the lots have been sitting empty for three or four years. I wish GM would do something with them– either sell them to the city or turn them into parks or something.

    • pecan 3.14159265 says:

      Hopefully these companies will understand that innovation is the only way to survive. Unfortunately, the game with these three at the moment isn’t so much “innovate” but “play catch up” – the Volt is a good step, but I would like to see the companies learn from their mistakes and invest more in providing cars that are more beneficial overall and take us closer to making hybrid and electric vehicles more commonplace.

      • pop top says:

        Oh definitely. I’m not saying that anyone in this state should “forgive” them because of this step alone. It’s going to take a lot of effort on their part to fix what they did to my state.

  3. Blueskylaw says:

    “The Obama administration says it has committed $60 billion to help GM and Chrysler avoid liquidation”
    “Last year, the Congressional Budget Office and the Treasury Department estimated that the U.S. government would likely lose $30 billion in the long term.”

    It’s nice to see the big three investing a whopping two billion Dollars to add jobs in Michigan.

  4. Murph1908 says:

    What??

    You mean lower corporate taxes will create jobs and help the economy!

    Blasphemy!

    • Loias supports harsher punishments against corporations says:

      What, you mean pumping millions into the coffers of 3 companies that failed to change with the rest of the world and instead maintained a stagnant and antiquated business model and product design saved them?

      Shocking!

    • ARP says:

      Yes, but those tax cuts often cost more than the jobs they create. This happens all the time with Wal-Marts and other companies. The state/town offers huge concessions in the form of tax credits, etc. and even agrees to build out infrastructure so that a company will hire some people in your state, city, town, etc. But they never hire as many as they say and will often abandon the town. The lost revenue and costs of those concessions are often more than simply using that money to hire people to work for the town.

      Of course, politicians jump all over it to talk about how they created jobs, when really, they caused the town to lose money. And who pays for all of it? Those “small business” that you talk so much about in every policy discussion. But we all knoww that “small business” is really code for “big business who makes political contributions.” Small businesses don’t have the negotiating power and don’t get squat, even though they contribute more to a local economy, than a Wal-Mart. The other loser are the residents who have to eat the losses in the form of higher sales and property taxes.

      So no, simply lowering taxes doesn’t work. It just spreads out the taxes and causes them to be raised on those who can afford it the least- residents and small businesses.

      • u1itn0w2day says:

        I think many of these sport stadiums are a perfect example of tax breaks and taxpayer assistance gone awry. Sounds great when making the deal but a9i8 few after except for a select these cities really don’t benefit as a whole.

  5. curmudgeon says:

    I really didn’t intend my tax money to buy any business, much less a failing one. But then again, I guess GM and Chrysler can use the money more than us seniors. After all, we aren’t all that useful any more.

    • captadam says:

      A lot of people might not intend their tax money to pay you a pension or to buy you health benefits, curmudeon, but that’s the reality of public policy. We elect representatives who, in turn, determine policy. Policy is generally used to bring about economic stability through the expenditures of tax dollars. So, we determine that letting old curmudgeons retire and be given access to healthcare is a good thing, both in human terms and in economic terms. And, we’ve determined that not allowing one of the nation’s largest industrial powers collapse overnight is a good step in keeping the already-imperiled economies of such industrial states as Michigan and Ohio from falling completely into the abyss.

      Don’t like it? Then find an abandoned oil rig and set up shop there. You’ll be free to do whatever you want, absent a society.

    • Gulliver says:

      I didn’t intend my tax money to fund a war in Iraq, Afhghanistan or Pakistan for going on ten years, but I didn’t get that choice on my tax return.
      I didn’t intend my tax money to provide break for those that marry, have children or buy houses. I wonder how much the mortgage deduction costs taxpayers each and every year for the last 20 years?
      I wonder how much the per child credit brings to people. Those of use who CHOOSE not to have kids are funding those that do
      Guess what, that is the way it works

  6. Hollihocks says:

    Love the Sufjan Stevens cover. That’s all.

  7. fredbiscotti says:

    Good thing we let these failing car companies go under, and shed the dead weight of outdated American auto companies back in 2008.

    • Evil_Otto would rather pay taxes than make someone else rich says:

      And had we done so, you’d be bitching now about all the jobs that were lost because the big three went under.

  8. dreamfish says:

    Michael Moore will be so happy.

  9. SuperNinjaâ„¢ says:

    Awesome, all that burnt-out Detroit real estate I bought will skyrocket in value!

    …Had I actually done so.

  10. u1itn0w2day says:

    So now in a bad economy when it’s politically correct to announce US based business plans Ford announces they will spend 850 million dollars. And it apparently took many tax breaks to bait corporations like Ford who are chasing tax breaks like charity on a stick.

    And yet several years ago Ford didn’t seem to mind spending 1.2 BILLION dollars on their most modern plant in Brazil.

    http://www.detroitnews.com/apps/pbcs.dll/article?AID=/20070822/AUTO01/708220407/1148

    Or shipping work,plants and dollars to places like China and Mexico

    http://news.bbc.co.uk/2/hi/7428952.stm

    http://www.zacks.com/stock/news/37134/Ford+to+Open+New+Plant+in+China

    Oooops

    Outsourcing, corporate America’s favorite rule.

    • graytotoro says:

      Ford also makes a lot of cars for the Brazillian and Asian (mostly Chinese, I believe) markets. Most, if not all the cars made there are not intended for the US market; it is not outsourcing as it is increasing supply in another market.

  11. Slave For Turtles says:

    The pic – that’s a great shot of… Wisconsin. /facepalm

  12. chaelyc says:

    Rather than saying they’re “adding” jobs maybe it should say they’re “replacing” jobs.

  13. Gulliver says:

    I didn’t intend my tax money to fund a war in Iraq, Afhghanistan or Pakistan for going on ten years, but I didn’t get that choice on my tax return.
    I didn’t intend my tax money to provide break for those that marry, have children or buy houses. I wonder how much the mortgage deduction costs taxpayers each and every year for the last 20 years?
    I wonder how much the per child credit brings to people. Those of use who CHOOSE not to have kids are funding those that do
    Guess what, that is the way it works

  14. zzyzzx says:

    That’s a lot of money for really very few jobs. And why does Chryslef have so many existing plants overstaffed?

    • pop top says:

      If you notice, they’re saying they’re going to hire people AND update existing plants. Money can go very quickly when you’re talking about updating old manufacturing equipment.

  15. TehLlama says:

    TAX CUTS. THEY WORK!