Flint giving GM tax break for the new engine factory

Posted on Monday, 1 September 2008 , 05:09:15 byEmil

Filed under gmgeneralmotorsflinttaxengineGMChevrolet

Flint giving GM tax break for the new engine factory

GM turned down 56 million Dollars Ohio incentive package for keeping the doors of the carmaker`s Moraine, SUV Ohio factory open, General Motors is set on accepting an incentive wrap from Michigan, the city of Flint.

The city council of Flint passed a measure giving General Motors an important tax break, although final figures are not published yet. General Motors requested that tax break investing 359 million Dollars in a brand new engine factory — creating 300 all-new jobs — producing the new powerplant 1.4L of GM. This new engine will be put in use in the forthcoming Chevrolet Volt model and Cruze.

The turbulent past of GM with Flint – like in the “Roger & Me” 1989 documentary — has a few residents uneasy with this tax breaks. “A lot of people still feel…General Motors owes us more than just a couple hundred jobs,” Jim Ananich - Councilman told The Detroit News. “I understand what people feel — I still sometimes have those feelings –but as competitive as the market is and the trouble General Motors is having, we have to help them with whatever we can do to keep them competitive.”

No details on when the factory is scheduled to be ready and running.