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AutoBlog: Bid to build new GM small car heats up: Orion reportedly offers $44M

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Filed under: Government/Legal, Plants/Manufacturing, GM

gm-orion-assembly-sign-fence-getty-580.jTowns 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]

Bid to build new GM small car heats up: Orion reportedly offers $44M originally appeared on Autoblog on Mon, 15 Jun 2009 18:00:00 EST. Please see our terms for use of feeds.

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They're talking tax incentives, while GM has been looking for straight-up cash. I think GM is going to just have to go with the best deal it gets offered, which is probably going to be much more incentives than cash, seeing as how the whole country is experiencing a bit of a shortage of "green".

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I vote for Michigan. Moving to Tennessee marked the beginning of the end of GM's global dominance. Get back to basics and move back to Michigan.

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I vote for Michigan. Moving to Tennessee marked the beginning of the end of GM's global dominance. Get back to basics and move back to Michigan.

Why does Michigan matter? I greatly prefer US manufacturing, but to focus on a state for the sake of focusing on a state is foolish. GM needs profitability right now to even continue to exist, so IMO, whichever US plant best supports that is the best choice.

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Spring Hill has a history of building pretty good small cars, and its the newest plant. But sentimentally, I'd like to see GM start in Michigan because thats where GM began, thats the economy GM created and thats the economy GM abandoned. It would be a nice to see GM reinvest in the saddest state in the nation.

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Why does Michigan matter? I greatly prefer US manufacturing, but to focus on a state for the sake of focusing on a state is foolish. GM needs profitability right now to even continue to exist, so IMO, whichever US plant best supports that is the best choice.

Better it to be in Michigan, considering the unemployment rate of the state and general malaise. And Tn is more friendly to import plants (Nissan, VW).

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Better it to be in Michigan, considering the unemployment rate of the state and general malaise. And Tn is more friendly to import plants (Nissan, VW).

It may very well be that the unemployment in MI will provide a willing and skilled workforce that can allow for the most competitive plant. If that's the case, great. Of course, it could also be that Michigan workers are more used to old school union ways, and might be harder to work with, I don't know.

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What plant has the less UAW influance and UAW hard liner employees you all. :scratchchin:

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What plant has the less UAW influance and UAW hard liner employees you all. :scratchchin:

Brilliant point. GM's prolly looking at the reddest state for this very reason, and Michigan it ain't.

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Brilliant point. GM's prolly looking at the reddest state for this very reason, and Michigan it ain't.

Southern Ohio is growing as NE Ohio is dead.

New plants and other things go to the south as they are die hard union. Youngstown is dead because who wants to move into a hot seat of unions and organized crime. Funny how they are in the same place. Union funds can be profitable.

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