As Michigan considers tax hike on in-state auto manufacturers, GM expands in Indiana

As Michigan considers tax hike on in-state auto manufacturers, GM expands in Indiana
Michigan Gov. Gretchen Whitmer (Pictured left) and General Motors CEO Mary Barra — State of Michigan | Benjamin Applebaum (Wikipedia Commons)
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General Motors (GM) is expanding its U.S. production in light of tariffs announced by President Donald Trump, but the automaker is choosing Indiana—not its home state of Michigan—for the latest wave of investment and hiring.

The Indiana expansion comes as Michigan considers a tax increase on GM and other in-state auto manufactures that the head of the Detroit Regional Chamber said would “jeopardize the state’s ability to do business.”

GM is increasing output of its full-size pickup trucks at the Fort Wayne Assembly plant in Indiana, with the company hiring up to 250 temporary part-time production workers to meet growing demand. Job listings indicate a starting wage of $16.67 per hour and availability requirements include weekends and holiday shifts. 

“We continuously update and revise production schedules as part of our standard process of evaluating and aligning to manage vehicle inventory,” GM said in a statement to Fox Business. The company said the Ft. Wayne expansion will “support current manufacturing and business needs.”

The positions involve assembly line work and may lead to full-time roles. Interested candidates are being recruited through GM’s careers portal.

According to Reuters, GM’s expansion comes in the wake of Trump’s 25% tariffs on auto imports. 

At the same time, Michigan state legislators are also considering legislation to end longstanding Michigan Economic Growth Authority (MEGA) tax credits granted to GM and the other two Detroit Three automakers.

This would raise GM’s business tax rate from 4.95% to 30%, potentially eliminating $500 million in refundable tax credits. Originally enacted in 2009 to stabilize the auto sector, these credits were set to continue through 2030. 

GM and its allies argue that repealing tax credits could severely undermine Michigan’s competitiveness, with the Michigan Manufacturers Association warning of a “506 percent increase” in taxes.

“The proposed tax increase will do nothing but jeopardize the state’s ability to do business,” said the president of the Detroit Regional Chamber, Sandy Baruah.  

GM maintains major facilities in Michigan, including its Detroit headquarters and the Factory ZERO EV plant in Hamtramck, but the company has already committed a $632 million new investment at the Indiana facility to modernize tooling, update conveyors, and support the next generation of internal combustion engine (ICE) light-duty trucks. 

These upgrades are part of a longer-term trend: GM has invested nearly $2 billion in the Fort Wayne plant since 2013 and more than $2.8 billion in its total Indiana operations, according to the Indiana Economic Development Corporation.



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