Michigan legislators approved $660 million incentive for GM

Michigan lawmakers have authorized the state funds transfer of $666 million to finalize incentive for general motors. General Motors are setting an electric vehicle plant alongside an electric vehicle battery factory to Michigan. Moreover, the money is for GM to build their plants in the Lansing area.

$1 billion Strategic Outreach and Attraction Reserve Fund

GM Motors finalized the deal in January this year with the state’s economic development board. However, it needed a go ahead for the state’s legislators. The legislators signaled their intention in favor of the move by putting $1 billion in the new Strategic Outreach and Attraction Reserve Fund. Moreover, it was part of the legislation signed by Gov. Gretchen Whitmer. The funds pot of $1 billion was created by the lawmakers after the missed upon a massive investment of more $11.4 billion by Ford. Significantly, the Senate Appropriations Committee voted 14-4 to shift $666 million from the account to new “critical industry” and site readiness funds. The House Appropriations Committee approved the step 18-9.

GM’s massive expansion in Lansing

The motor company is planning to spend around $4 billion to convert and expand their factory in Orion Township assembly. They will use this facility to make electric pickups. In addition, they will spend $1.5 billion to $2.5 billion for building their third U.S. battery cell factory with a joint venture partner in Lansing. GM and Ultium Cells will operate the plant as a joint venture. They will split $600 million worth of recently approved incentive. An additional $66 million will go toward upgrading infrastructure at the potential battery plant site.

Multiple job opportunities

The move from General Motors is likely to bring multiple job opportunities in the Lansing area. The new factories will create up to 4,000 new jobs. In addition, GM will also retain 1,000 employees which are already working at the Orion facility. Only, the $2.6 billion facility is will employ about 1,700 people.

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