Chevy Volt will increase 550 jobs to Detroit

Construction of the Chevrolet Volt electric car would bring 550 jobs to the city, General Motors Corp. officials told a Detroit City Council committee today.

General Motors is seeking a $136 million tax abatement over 25 years to build the car at the Detroit/Hamtramck Assembly Plant.

“It’s important because it introduces new technology for General Motors,” said Blake Watkins, tax abatement manager for Detroit’s Planning and Development division. “The electric car is very big to their existence.

“We will be evolving this technology here involving the residents of the city of Detroit…. and moving GM’s technology forward, at the same time moving the city of Detroit forward,” Watkins said GM has proposed $336 million investment into the plant to build the car. The plant currently employs 1,944, he said.

GM officials made their presentation to the city council Planning and Economic Development Committee. Only two members, Kwame Kenyatta and Barbara-Rose Collins, were at the meeting, and both seemed receptive to the abatement idea.

Council’s fiscal analyst Irv Corley said the company would still generate an additional $4.6 million a year in tax revenue for the city and Detroit Public Schools even with the possible tax break.

The full city council must still approve the tax abatement and a vote could come as soon as next week.

Thursday morning, GM Chairman and CEO Rick Wagoner and Governor Jennifer Granholm are scheduled to attend an event in Flint to formally announce GM’s plans to spend about $380 million to build a new engine plant there. The engine plant will build 1.4-liter engines for the Chevrolet Volt extended-range electric vehicle and the Chevrolet Cruze, which are both scheduled to launch in 2010.

The Michigan Economic Growth Authority has approved tax credits and the localities of Flint, Pontiac and Bay City all have approved tax abatements to ensure GM manufactures the Volt and its key components in Michigan.

Source:Freep.com

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