The Big 3 are back to investing in Metro Detroit, announcing more than $2 billion worth of new investments that will help retain tens of thousands of jobs in everything from bending metal at factories to developing the newest lithium ion batteries.
Ford announced plans to spend $850 million on its Michigan facilities, a move that will help retain 28,000 jobs over the next five years. Chrysler also plans to invest $1 billion in its Sterling Heights and Dundee plants, which will keep about 20,000 jobs here. Ford and Chrysler received $909 million and $1.3 billion in state tax breaks over 20 years, respectively.
Perhaps the most encouraging to Metro Detroit's new economy are the investments planned by General Motors. The downtown Detroit-based automaker is investing about $150 million into the development and production of lithium ion batteries, the power source for new hybrid-electric cars like the Chevrolet Volt.
"It's one of our core areas now," says Kevin Kelly, manager of battery electric vehicle and hybrid communications for GM. "Vehicle electrification will play an important role in the company. We view it as important as the internal combustion engine."
General Motors is investing an additional $112 million into the Warren Tech Center's $2.5 billion project to further develop its battery development center. The new investment will add a hybrid electric vehicle battery and vehicle engineering and development operation, which is expected to create 900 new jobs. GM's Subsystems Manufacturing subsidiary is also expanding its battery module and pack assembly at its Brownstown facility. The $39.7 million investment is expected to retain an additional 150 jobs.
Source: Michigan Economic Development Corp and Kevin Kelly, manager of battery electric vehicle and hybrid communications for General Motors
Writer: Jon Zemke
Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.
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