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Warren Makes Bid to Lure, Retain GM Work

WARREN, MI-Warren is making a bid to attract a $350-million General Motors investment at a local auto plant. The retrofit could help retain approximately 500 jobs at the facility.

By Dan Heaton | Updated on February 05, 2004

WARREN, MI-General Motors, the United Auto Workers union and the mayor of Warren are all asking the Warren City Council to approve a series of tax credits that could lead the automaker to retrofit an existing auto plant in this Detroit suburb. GM plans to spend about $350 million to develop a facility to build six-speed transmissions for a variety of vehicles. GM won’t say what additional sites—-potentially around the globe—-are under consideration, other than explaining that its existing transmission plant here, where four-speed transmissions are now made, is under consideration.

This week GM has applied for an industrial facilities tax certificate that, if approved, would cut the property taxes in half on $220 million in property, most of it machinery and equipment. “Warren knows that they’re a contender, and we’re trying to put together a business case,” GM spokeswoman Darla Park said. “Tax exemptions are an integral part and essential for corporate approval.” The local plant has about 500,000 sf of space that could be used for the new project, if awarded.

In a press conference this week, the head of the UAW Region 1 president Ken Terry and Warren Mayor Mark Steenbergh explained that tax breaks are vital to keeping the plant running and retaining some 500-plus jobs at the plant. Warren Power Train now employs about 1,500 people.

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