LANSING (WWJ) -- General Motors is making a nearly $7 billion investment that will boost Michigan’s economy and create thousands of jobs across the state.
The auto company announced plans on Tuesday to spend $4 billion to convert GM’s Orion Township assembly plant for the production of EV pickups.
GM will also spend an estimated $2.5 billion in a joint venture to build Ultium’s third U.S. battery cell plant, which will be located in Lansing.
Gov. Gretchen Whitmer joined General Motors CEO Mary Barra, union officials and other state leaders to announce the historic investment, that will create 4,000 jobs and retain 1,000 jobs for workers already employed at the Orion Township plant.
The move also helps cement the auto manufacturer’s commitment to creating an all-electric future from within Michigan, and growing the state’s momentum as a leader in electric vehicle and advanced automotive manufacturing.
“GM’s $7 billion investment in Michigan—the largest in their history—will create and retain 5,000 good-paying jobs and enable us to build on our legacy as the place that put the world on wheels,” said Gov. Whitmer. “When it comes to investing in Michigan, GM and I have the same philosophy: ‘Everybody In.’ Michigan’s future is bright, and I will continue working with anyone to make transformational investments in our economy, create good-paying jobs, and empower working families.”
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GM also announced plans to invest more than $510 million in its two Lansing-area vehicle assembly plants to upgrade their production capabilities for near-term products.
The Michigan Economic Development Corporation approved $824 million in incentives and assistance for General Motors as part of the plan.
That will include a $600 million grant to GM and Ultium Cells, and a $158 million tax break for Ultium.
The board also authorized $66.1 million to the Lansing Economic Area Partnership (LEAP) for public infrastructure and utility upgrades.
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The Orion assembly plant and Ultium battery cell plant projects are the first to be approved utilizing the new Critical Industry Program and Strategic Site Readiness Program signed into law in December by Gov. Whitmer.
The news comes several months after Michigan was passed over to become the location of three Ford Motor Co. factories and an electric vehicle assembly plant; an $11 billion investment that instead went to Kentucky and Tennessee.
GM aims to have the new Michigan factories producing in about two years, with a goal of selling electric passenger vehicles exclusively by 2035.
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