Michigan Gov. Gretchen Whitmer’s administration and lawmakers are preparing a major economic development program that could involve millions of dollars to land big plans for passage through the Legislature next week. With in sight: General Motors.
Failing Ford, Michigan General is eyeing General Motors investments
One of the main targets of the quietly taking shape is General Motors. The unexpected landing of at least one of the automaker’s two battery factories in Detroit – Michigan’s largest city – would offset rival Ford’s decision, announced last September, to partner with SK Innovation to invest $ 11.4 billion and create 11,000 new jobs in an electric truck factory, three battery factories and a fleet of suppliers split between Kentucky and Tennessee.
Michigan wants state capacity and government support
Michigan officials want to make sure their state is both ready and competitive for these upcoming projects, however, but that could require a significant – and potentially controversial – use of government dollars.
Some lawmakers have previously opposed incentives aimed at specific companies. State Senator Ken Horn, chairman of the Senate Committee on Economic Development and Small Business, said on Tuesday that lawmakers plan to create an “investment fund,” hoping to change the fact that planners of sites ignored Michigan.
“We need to send a message to the entire economic development world that you can no longer hold us off your spreadsheet as you research new developments,” said Horn, R-Frankenmuth.
US $ 5 billion bailout yet to be awarded
Lawmakers are considering how to spend a budget surplus and the more than $ 5 billion unallocated from the US bailout, which President Joe Biden signed into law in March.
The State House and Senate have another five sitting days scheduled before the end of the year, and lawmakers hope to get the development initiative to the Whitmer office before the holidays.
The package, according to two sources familiar with the matter, is expected to build on a series of bills that were introduced last week to create new public funds focused on strategic outreach and attraction, site preparation and critical industries.
Some lawmakers have signed nondisclosure agreements preventing them from discussing the details of at least one potential development project that could benefit from the initiative.
4 production sites planned by General Motors and LG Energy Solution
General Motors and its battery supplier LG Energy Solution are planning to build four battery cell manufacturing sites in the United States. So far, they have announced two – one in northeast Ohio and a second in Spring Hill, Tennessee.
GM chairman Mark Reuss previously told the Detroit News that the automaker was looking in its home state for the location of at least one of the additional factories planned: “We would like to reduce transportation costs. And, of course, a lot of us are Michiganders, ”he said. “
A potential location for a battery plant would be near GM’s Delta Township plant, where the automaker has available space.
GM supports current legislation
General Motors spokesman Daniel Flores said on Tuesday that his company supports the current legislation: “We are supporting efforts that will allow companies like ours to improve their competitiveness by covering operating costs. for new investments and job creation.
“We intend to work with the Legislative Assembly and the Governor on this legislation in the coming weeks. We will not speculate or divulge the details of the projects under consideration. “
On Tuesday, the Township of Orion issued a Dec. 20 notice of hearing to discuss a possible tax exemption for industrial facilities for GM property near the company’s assembly plant. Flores did not specify the planned investment for Orion.
The State House government operations committee will meet Wednesday morning to “hear testimony on a new plan to ensure Michigan communities remain competitive as businesses decide where to invest money and jobs “, According to a press release from House Republicans.
State Representative Jack O’Malley said part of the legislation would create a fund within the Michigan Department of Labor and Economic Opportunities – the Strategic Outreach and Attraction Reserve Fund – which could be used for companies seeking grants or loans for the development of infrastructure and critical sites.
Sources : Detroit News
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