Great Lakes Wire

Genesee County Sheriff Chris Swanson, a Democrat candidate for Michigan governor, said ”there are better ways to finish fixing the roads” than new tax increases on the major in-state auto manufacturers.

His comments are in response to a so-called “road funding” bill by state legislators that would end longstanding Michigan Economic Growth Authority (MEGA) tax credits granted to the auto companies.

“Regardless of political party, we must recognize the State of Michigan entered into an agreement that’s in effect until 2029,” Swanson told Great Lakes Wire. “It may not have involved those in leadership today, but a deal is a deal.”

“If we as a State are not willing to honor our end of the agreement, what message does this send to future incumbent industry growth? Not to mention new industries looking to invest and build,” Swanson said. “If there’s one thing workers, investors, businesses, and manufacturer’s detest, it’s uncertainty.”

Swanson announced his candidacy for Michigan governor in February, reported Michigan Public Radio.

Ending the MEGA tax credits would raise the auto manufacturers’ 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 Originally enacted in 2009 to stabilize the auto sector, these credits were set to continue through 2030. 

The Michigan Manufacturers Association said the proposal would results in a “506 percent increase” in taxes, and Sandy Baruah, president for the Detroit Regional Chamber said “the proposed tax increase will do nothing but jeopardize the state's ability to do business.”

“Michigan road improvements must be a priority,” said Swanson. “There are better ways to finish fixing the roads than this.”

“Large investments by GM, Ford and Stellantis benefit Michigan families,” he said. “Not only by providing good paying union jobs, but all the other economic benefits that come with it. Workers buy homes, they shop, they entertain and their kids go to our schools.”

As legislators consider the tax increase proposal, General Motors (GM) is expanding across the border in Indiana.

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.

“If Michigan is not competing for the auto industry as well as tech, data centers, innovation and more, I can tell you first hand what it looks like when they leave for the other 49 states. I’ve seen that; I’m from Flint,” said Swanson. “This is the time for leaders on all levels to negotiate a deal where production and investments come to Michigan and stay long term.”

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.