GM wins tax break for $1.3 billion plant expansion in Orion Township

GM Orion Assembly_i
Credit: GM

Orion’s Township board of trustees approved a 12-year tax break for General Motors (GM) potential expansion at their Orion assembly plant.

The $1.3 billion expansion could be used for battery assembly and vehicle assembly platforms.

If GM moves forward with the investment, the automaker will enjoy a 50 per cent reduction in property tax over 12 years.

The tax break would begin in 2026 after a three-year construction period.

The construction period would qualify for the industrial facilities abatement already approved by the Orion Township, reports Automotive News.

The Orion assembly plant opened in 1983 and has over 1,000 employees working the line. The facility currently produces the Chevy Bolt EV (production is currently halted) and Cruise’s autonomous test vehicles.

If the expansion goes through, GM estimates that the plant will create over 2,000 jobs by the end of 2028.

However, the Orion assembly plant is not the only GM site to receive tax breaks in Michigan. The auto manufacturer already secured tax breaks for a planned $2.5 billion EV battery plant west of Lansing.

In addition, GM hopes to secure part of a new $1 billion tax incentive fund from the State of Michigan.

The tax incentive fund hopes to secure Michigan as home to GM’s next battery plant.

GM did not confirm if any of the projects, including the project in Orion is going ahead. GM spokespeople did note however that they appreciate the support of the Orion township.

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Originally from the West Coast, Scott is an avid writer & EV enthusiast now living in Ottawa. He holds a MA in Political Science and once played professional football in the German Football League. Email scott@driveteslacanada.ca