GM Breaks Ground For $385 Million Engineering Centralization Business Unit

New building will consolidate 1600 GM jobs in Pontiac

PONTIAC, Mich. - GM and government officials today broke ground on a $385 million engineering facility at GM Powertrain's headquarters site here. The new facility will consolidate 1600 jobs, or most of GM's Michigan powertrain engineering and laboratory operations, into the Pontiac site.

Business areas affected include component and dynamometer lab operations and transmission, diesel and hybrid engineering. GM Powertrain's current Michigan operations include transmission engineering and testing in Ypsilanti, diesel engine engineering and testing in Romulus, hybrid propulsion systems engineering and testing in Troy, engine testing in Warren and component testing in Wixom. GM Powertrain vehicle integration and emissions testing remains at GM's Milford Proving Ground.

GM expects this move to make its operations more efficient and competitive. "It is partnerships like these that keep GM continuing to invest in the state of Michigan, Oakland County and the city of Pontiac. The consolidated powertrain engineering operations will allow GM to provide flexible engineering development tools to bring new, robust powertrain technologies to market at an ever-increasing speed," said Ed Koerner, vice president of engineering for GM Powertrain. Construction is expected to be complete by late 2007.

Koerner was joined at the ground breaking ceremony by Director David Hollister of the Michigan Department of Labor and Economic Growth, Oakland County Executive L. Brooks Patterson and city of Pontiac Mayor Willie Payne.

The state granted GM a Brownfield Redevelopment Single Business Tax credit and a state air permit for the $385 million investment. The city of Pontiac granted GM tax abatements allowed under Michigan state law for the investment.

"This investment is wonderful for Pontiac's long-term economic prosperity. GM has always been a great corporate citizen and we look forward to seeing the benefits as a result of this investment," said Mayor Payne.