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FCA US to spend $1 billion in Michigan (updated)

by David Zatz on

FCA US has a revised agreement with the Michigan Economic Development Corporation / Economic Growth Authority, which caps the value of the tax credits it can claim. The MEGA credits became controversial when they topped $9 billion, thanks to lavish spending in 2009-10, when credits were given for promises of jobs retained rather than added.

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FCA US is required to invest another billion dollars into capital investment over the term of the MEGA tax credit; the company has spent $4 billion in Michigan and added nearly 15,000 new jobs since 2009. A press release noted that FCA would not say how it planned to invest, but observers expect that upgrades and repurposing of the Sterling Heights and Warren Truck plants will account for a good deal of the investment. Most of the company’s engines are also built in Michigan, and those plants are to be retooled and possibly upgraded as well in the next few years.

FCA US has a great deal of time to spend: Larry Vellequette of Automotive News calculated that the extra $1 billion can include investments through 2029.


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