News Bite

With $600 Million From State, GM Must Only Retain Battery Car Jobs For Six Months

Somehow such legal fine-print rarely appears in media reports on these taxpayer handouts

The state agencies in charge of handing out taxpayer-funded subsidies to favored corporations say General Motors' "historic investment" in building electric cars in Michigan would create 4,000 jobs and bring $7 billion in new investment to the state.

The deal also brings a $600 million bill to state taxpayers the automaker will collect to locate the project here.

Missing from the news stories and press releases are certain details: In the information packet for its presentation to their board, officials of the state agency called the "Michigan Economic Development Corporation" reported that GM would only have to create 3,200 jobs, invest $3 billion, and maintain those jobs for just six months.

Money for these and other handouts was approved in a December 2021 appropriation approved by the Michigan House and Senate with broad bipartisan majorities.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.