The new plant is part of an $838-million retooling and expansionplan in Michigan by the automaker to create the Chevrolet Volt, acar that will run for 40 miles after being charged for just a fewhours from a common household electric socket.

Workers at the new 500,000-sf plant will build engines for theVolt and the Chevrolet Cruze, a new compact car. The rest of theexpansion plan includes upgrades to the Detroit-Hamtramck AssemblyPlant (where the car will be constructed), the Pontiac Metal Centerin Pontiac (to stamp the Volt's metal), the Bay City ComponentsPlant (more engine work) and the GM Technical Center in Warren (forbattery research).

The company, which has been based in Michigan since itsinception in 1908, alleges that it has looked at other states tohouse some or all of these tasks. In response, the state, throughthe Michigan Economic Growth Authority Board, approved on Tuesday atax credit worth $122.5 million for 15 years, and a brownfield taxcredit valued at $10 million, to keep the firm employing Michiganworkers. The city also approved incentives, including about $6million of real property taxes, and much more with a 100% abatementof personal property taxes through 2033. "The automotive industryis a fiercely competitive business," said company officials in astatement. "As investment dollars become scarcer, GM facilities incommunities that create positive environments for business are morelikely to receive future investment dollars from GM. Economicincentives from the state of Michigan will assist in the long-termviability and competitiveness of the proposed projects."