City officials in Orion Township approved the tax abatement for GM on Tuesday, which will grant tax-free status to the property for 12 years plus an additional three years during the construction phase. According to The Detroit News, which viewed GM’s tax abatement application previously, construction work on the Lake Orion plant is expected to commence in July.
GM spokesman Dan Flores told The Detroit News the tax abatement helps GM form a viable business case for producing EVs at the Michigan plant, although the automaker has yet to make a final decision on whether or not it will go ahead with the investment.
“GM sincerely appreciates the support the Orion Township Board of Trustees showed by approving our tax abatement application this evening,” Fores said. “Securing all available tax incentives plays a critical role in any business case moving forward. Approving our tax incentive application is certainly a positive step forward, however, the proposed project is not approved. I’m not going to speculate on GM leadership making a final determination on the business case under development.”
Sources familiar with GM’s plans told The Detroit News the automaker plans to produce electric trucks at the Lake Orion Assembly plant, which currently produces the Chevy Bolt EV and Chevy Bolt EUV. The automaker will produce the GMC Hummer EV Pickup and Hummer EV SUV, along with the Chevy Silverado EV, at the Factory Zero plant in nearby Detroit-Hamtramck, so it’s not clear which truck it allegedly has planned for Lake Orion. The renovation work is expected to retain or create up to 2,000 jobs at the Orion Township facility.
GM also recently received a tax break from the nearby city of Lansing in Michigan to construct a new battery plant on a 529-acre plot of land within the municipality. The project would cost “up to or more than,” $2.5 billion and would create roughly 750 full-time jobs when completed at the end of 2025, public records indicate. The proposed Lansing battery plant would be close by the GM Lansing Delta Township Assembly plant, which currently builds the Chevy Camaro, along with the Cadillac CT4 and Cadillac CT5. GM is also currently building two separate battery plants in Lordstown, Ohio and Spring Hill, Tennessee.