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Automobile industry

Michigan Senate Approves Tax Credit for Piston Automotive Expansion

Strategic Insights

— 1 min read

The Michigan State Senate, Democratic Caucus, released information detailing the approval of a $889,293 tax credit by the Michigan Economic Growth Authority (MEGA) Board for Piston Automotive. This incentive will enable the company to expand their Redford Township facility and manufacture electric battery packs for the 2012 Ford Focus. The project is expected to generate $15 million in private investment and create up to 467 local jobs, including 135 directly at the company. Senator Glenn S. Anderson praised the decision, stating that it highlights the success of incentives that create a favorable business environment for the state's auto industry.

Key Takeaways:

  • The Michigan Economic Growth Authority (MEGA) Board approved a $889,293 tax credit for Piston Automotive to expand their Redford Township facility and manufacture electric battery packs for the 2012 Ford Focus.
  • The project is expected to generate $15 million in private investment and create up to 467 local jobs, including 135 directly at the company.
  • The incentive helped secure the company's investment over a competing site in Kentucky.
  • Piston Automotive plans to expand its workforce and investment in Redford with several other new projects related to the assembly of chassis parts for Ford, General Motors, Honda, and other auto companies.
  • The company will also expand its facility in Detroit to assemble chassis parts such as brake corners and struts for GM and Honda.
  • Detroit Diesel received a state brownfield investment incentive valued at up to $7 million from the MEGA Board in July 2010 to assist with its expansion in Redford Township.
  • The project is expected to retain 1,900 permanent, full-time jobs at the Redford plant.

Statistics:

  • $889,293: The amount of tax credit approved by the MEGA Board for Piston Automotive.
  • $15 million: The amount of private investment anticipated from the project.
  • 467: The total number of local jobs expected to be created by the project.
  • 135: The number of jobs directly created by Piston Automotive.
  • $194 million: The amount of investment Detroit Diesel plans to make in its three million square foot facility in Redford Township.
  • 1,900: The number of permanent, full-time jobs retained by the Detroit Diesel project.

Sources:

  • Michigan State Senate, Democratic Caucus
  • [Source not provided in original material]

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