GM receives funding for plant conversion in Orion

GM receives funding for plant conversion in Orion

General Motors has been granted a tax break for a planned $1.3 billion investment to expand its Orion Township assembly plant in Michigan to produce more electric cars, according to US media.

Importantly, the investment is said to be $1.3 billion, not the tax break, the exact amount of which is not yet known, with the Detroit Free Press and Detroit News writing only of a "major tax break" that Orion Township officials have decided on. The exact amount of tax that GM will pay after the investment - and the resulting increase in the value of the plant - is thus still being determined by the taxing authority.

In the application for the tax abatement, GM said it plans to begin the plant expansion in July and complete the expansion by December 2025. According to the Detroit News, GM applied for the maximum time period allowed for tax abatements, specifically for 12 years plus three years during construction. The project, which mainly includes several additions and other improvements to "support electric vehicle production," is expected to "create or retain" about 2,000 jobs by 2028. Currently, 1,181 people are employed at the plant, which opened in 1983, according to GM's website.

Orion Township produces the Chevrolet Bolt EV and its offshoot Bolt EUV - currently those are the only models, production of the internal combustion Chevrolet Sonic small car has already ended in 2020. However, production is suspended until February due to the electric model recall for battery issues. GM is prioritizing available batteries for battery swaps as part of the recall, those batteries will be missing from new car production.