MICHIGAN ECONOMIC DEVELOPMENT CORPORATION CORENET GLOBAL ECONOMIC DEVELOPMENT AWARD GENERAL MOTORS IN FLINT presented by KATHY BLAKE and AMY BANNINGA MARCH 15, 2005

MICHIGAN ECONOMIC DEVELOPMENT CORPORATION FLINT HISTORY City once synonymous with General Motors  GM founded in Flint in 1908 by Billy Durant

MICHIGAN ECONOMIC DEVELOPMENT CORPORATION FLINT HISTORY Long relationship great for city, in spite of difficulties.  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

MICHIGAN ECONOMIC DEVELOPMENT CORPORATION 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

MICHIGAN ECONOMIC DEVELOPMENT CORPORATION Governor and the Legislature make MEDC and MEGA more effective  Flexibility addresses new challenges and opportunities High-Tech MEGA Retention MEGA

MICHIGAN ECONOMIC DEVELOPMENT CORPORATION 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

MICHIGAN ECONOMIC DEVELOPMENT CORPORATION 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

MICHIGAN ECONOMIC DEVELOPMENT CORPORATION ATTRACTION EFFORTS State incentive package:  MEGA tax credit worth more than $28.2 million

MICHIGAN ECONOMIC DEVELOPMENT CORPORATION 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

MICHIGAN ECONOMIC DEVELOPMENT CORPORATION 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

MICHIGAN ECONOMIC DEVELOPMENT CORPORATION 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.”

MICHIGAN ECONOMIC DEVELOPMENT CORPORATION 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 ECONOMIC DEVELOPMENT CORPORATION michigan.org