Big 3 to invest $2 billion in Michigan, Chrysler to invest $1 billion

From L to R: Alan Mulally, Sergio Marchionne, Dan Akerson

The Michigan Economic Development Corp. announced today the largest set of tax incentives announced in a single day. As a result, Detroit”s three automakers are set to invest $2 billion dollars into their Michigan operations and in the process, add as many as 2,250 jobs.

Ford was the first to outline its plans, saying that it will pump $850 million into four Michigan plants between 2011 and 2013 creating 1,200 jobs. The move by Ford will increase the production of components to increase fuel-efficiency. An agreement with the UAW by which new employees will make half as much as veterans has also helped to effectuate these moves.

Chrysler plans to invest $1 billion in equipment and tooling to make midsize cars at one factory, but isn”t announcing any new jobs yet. A second shift however, has been added in Sterling Heights for the spring.

GM is planning a much smaller investment; $152 million for hybrid programs which will add up to 900 jobs.

– By: Stephen Calogera

Source: Detroit News