MICHIGAN ECONOMIC DEVELOPMENT CORPORATION CORENET GLOBAL ECONOMIC DEVELOPMENT AWARD GENERAL MOTORS IN FLINT presented by KATHY BLAKE and AMY BANNINGA MARCH

MICHIGAN ECONOMIC DEVELOPMENT CORPORATION

CORENET GLOBAL ECONOMIC DEVELOPMENT AWARD

GENERAL MOTORS IN FLINTpresented by

KATHY BLAKE and AMY BANNINGA

MARCH 15, 2005


FLINT HISTORY

City once synonymous with General Motors GM founded in Flint in 1908 by Billy Durant


FLINT HISTORY

Long relationship great for city, in spite of difficulties. 1936-37 strike

– Historians: most important strike in American labor history

– Governor Frank Murphy and President Roosevelt involved, National Guard dispatched

– Result: GM agreement w/UAW covering 17 plants

1998 strike– Shut down most of GM’s North American manufacturing operations

– Cost company $2 billion and market share it has yet to recapture

– Left deep scars in community



Why MEDC and MEGA were created 1990’s, Michigan losing major corporate

investments and jobs to other states MEDC: a public-private partnership that gets

things done MEGA targets head-to-head competition



Governor and the Legislature make MEDC and MEGA more effective Flexibility addresses new challenges and

opportunities• High-Tech MEGA• Retention MEGA


GM CAN BUILD ANYWHERE—WHY FLINT?

Challenges in competing for new auto plants GM increasing technology and productivity Rising health care and legacy costs prompt

cost-cutting moves GM could save up to $100 million annually

elsewhere


ATTRACTION EFFORTS

Local support Meetings with company, state and local

officials State, local property tax abatements worth

$42.8 million City helped UAW, MEDC make case to GM

leaders


ATTRACTION EFFORTS

State incentive package: MEGA tax credit worth more than $28.2

million


A DECISIVE WIN

GM Flint Products Michigan automakers major players in heavy-

duty pickup production $150 million refurbishment of Flint Truck

Assembly for production of next-generation Silverado, Sierra heavy-duty pickups

Adding new machinery, tooling and equipment for future production


A DECISIVE WIN

GM Flint Products $300 million expansion of Flint Engine South

plant, adding 500,000 square feet for production of GM’s new advanced global V-6 engine • Plant is sole source of GM’s Vortec 4200 six-

cylinder engine for SUVs


A DECISIVE WIN

Governor Granholm’s Nov. 30, 2004 announcement

“…General Motors’ projects will affirm the importance of my overall automotive strategy as we continue to target new investment in Michigan.”


RESULTS

350 new positions, another 2,862 retained Company investing nearly half a billion

dollars in Flint Estimated positive state revenue impact over

life of agreement: $517 million


michigan.org

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MICHIGAN ECONOMIC DEVELOPMENT CORPORATION CORENET GLOBAL ECONOMIC DEVELOPMENT AWARD GENERAL MOTORS IN FLINT presented by KATHY BLAKE and AMY BANNINGA MARCH