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Towns in Tennessee, Michigan, and Wisconsin are all vying for a chance to keep their existing plants running by coming up with the most attractive package to woo assembly rights for a future unnamed General Motors small car. In the showdown, the first place plant will win the right to stay open, while the other two will be consigned to history. Last week, officials from Spring Hill, Tennessee said that The General was allegedly looking for over $200 million in upfront cash as part of any deal.
The state of Michigan and the Michigan Economic Development Growth Authority isn't talking about their GM enticement package, but according to The Detroit News, Orion Township is reportedly chiming in with over $44 million in incentives. The package includes 100% tax free machining costs for up to 12 years, with overall tax forgiveness of $44 million.

The goal for Orion is to preserve the remaining $2.7 million in annual taxes it receives from the plant, along with the additional taxes it receives from the 3,400 employees that work, eat and in many cases live in the area. The township is also offering to build a water treatment facility on-site at the plant, saving GM about $1 million. GM would have to donate the land for the facility, but it would receive an additional tax credit for the appraised value of the land.

GM has said that it would announce the winning facility within the month. The plant is slated to build up to 160,000 vehicles per year and add up to 1,200 jobs.

[Source: Detroit News | Image: Bill Pugliano/Getty]


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    • 1 Second Ago
  • 17 Comments
      • 5 Years Ago
      FWIW, they inexplicably pronounce it Or'-eeyun.
        • 5 Years Ago
        It sounds slightly less weird when you realize few ever say just "Or'-eeyun". The city is named "Lake Or'-eeyun", and the township is usually pronounced "Or'-eeyun Township" if it's ever spoken of at all.
      • 5 Years Ago
      extortion at its finest
        • 5 Years Ago
        DJ, by your argument, you are extorting money too, because you (and I) own GM. Shame on you!
        • 5 Years Ago
        DJ, A comment so idiotic is obviously not meant to be taken seriously. Hilarious.
        • 5 Years Ago
        Should GM be nice or profitable? You can have one or neither, but not both.
        • 5 Years Ago
        @Chris: You need to can your silly 'extortion' claims. This is the same way the import brands built plants in the virtually union-free Deep South, with tax giveaways much larger than this one (considering the new plants had to be built from the ground up)--you know, those same makers building better vehicles that people want without the evil UAW?

        It was good enough to snare Mercedes-Benz, Honda, Nissan, Toyota, and Hyundai into building plants in Alabama and Mississippi, but it's suddenly 'wrong' when GM is trying to do it to preserve or bring back jobs? What a joke.

        • 5 Years Ago
        But the bizarre twist here is that the Obama administration, which owns GM, is attempting to extort money from states and local governments! There have gotta be folks in the Chicago "machine" just in awe of what their protege has become.
      • 5 Years Ago
      Don't do it GM. Be smart. Lake Orion has never been a great plant, and in a UAW stronghold, it never will be.

      Spring Hill seems like a lot smarter idea.
        • 5 Years Ago
        Give me a break. The UAW has no power whatsoever, as evidenced by the past few contracts, most notably the 2007 contract which did away with virtually every advancement the UAW has made in seventy years.
      • 5 Years Ago
      Why do I get the bad feeling this is going to get ugly? Almost on the brother against brother level to scrape up a few jobs?
        • 5 Years Ago
        because desperate times leads people to commit desperate acts
        • 5 Years Ago
        Yea, but there's something wrong with selling out your factory to the highest bidder. I know, capitalism, rah rah and all that, but it still reeks of graft to me.
        • 5 Years Ago
        http://news.cnet.com/8301-13579_3-10251059-37.html

        Only loser companies like Google and Apple go for tax breaks.
      • 5 Years Ago
      Better strategy would be build the car in a plant in China.
        • 5 Years Ago
        And have more Americans unemployed? Dumb thing to say.
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