No major manufacturer ever builds a new factory without getting lots of tax breaks from state and local governments. In fact, what happens is they announce plans to build a factory without specifying a location and then sit back and wait while the offers flood in. It should come as no surprise that GM is now asking for incentives from the city of Detroit and the state of Michigan for production of the Chevy Volt. GM has never publicly announced where the Volt would be built, but a leaked copy of the new contract that was negotiated with the UAW last fall listed future vehicle production assignments for most of the company's plants. Prominent on that list was the Detroit-Hamtramck assembly plant that currently produces the Buick Lucerne and Cadillac DTS. The Detroit plant is now scheduled to build the Volt and a compact MPV to replace the Opel Zafira. GM officials met with Detroit City Council members on Monday to discuss the issue. From a PR perspective, GM would love to build the Volt in Detroit to symbolize the re-birth of the company in Motown. However, if they don't get the tax breaks they want, GM surely won't hesitate to go elsewhere.

[Source: Detroit News]

Share This Photo X