Chrysler receives tax credits, grants for local expansionWritten by Duane Ramsey | | email@example.com
Chrysler Group LLC has received approval for $10 million in tax credits and $2.85 million in grants from the State of Ohio. The funds are for work force training and new equipment for the proposed expansion of the Toledo Assembly Complex (TAC) and Toledo Machining Plant in Perrysburg Township.
Ohio Gov. John Kasich announced the tax credits and grants for Chrysler’s local expansion projects once they were approved by the Ohio Department of Development (ODOD) on Aug. 29. The incentives support Chrysler’s potential investment of $365 million in the TAC facilities and $72 million in the machining plant.
“These incentives are part of my administration’s efforts to help create needed jobs in the Toledo area,” Kasich said. “Chrysler is a major asset to Toledo and Ohio and we’re doing everything we can to make the case that Ohio is the right place for the company to continue to invest and grow.”
Kasich met with representatives of Chrysler, Ford and General Motors in Detroit on Aug. 23 to discuss investments and the continued presence of the companies in Ohio.
Chrysler appreciates the support from the State of Ohio in approving these incentives, according to Jodi Tinson, a spokesperson for the Chrysler Group.
The ODOD approved the tax credits and grants to help create 1,100 new jobs and retain 1,700 existing jobs at the TAC.
The UAW union and local officials have been expecting the financial assistance from the State of Ohio since Chrysler applied for tax abatements from the City of Toledo, Toledo Public Schools, and Washington Local Schools.
UAW Local 12 President Bruce Baumhower reported earlier that the union expected the state’s announcement of incentives for expansion of the TAC by Chrysler.
“We’re glad they approved it. It’s another step completed in the process. You’ve got to have business, labor and government working together to get it done. We look forward to a big announcement by Chrysler soon,” Baumhower said.
Chrysler already has approval of the tax abatement by the local school districts involved, an EPA air permit and state incentives for the project. Any incentives to come from the City of Toledo are to be determined.
City Council is scheduled to hold a public hearing on the proposed incentives from the city for the Chrysler TAC at 3 p.m. Sept. 7 in the Council chambers at One Government Center.
The ODOD approved $4.1 million in state incentives for the Toledo Machining Plant that includes more than $3.3 million in tax credits and $850,000 in grants for worker training and equipment at that facility.
Chrysler confirmed plans Aug. 23 to invest $72 million in the machining plant, which would help retain 640 jobs there to produce new generation front- and rear-wheel drive torque converters and steering columns. Chrysler’s plans are subject to completion of incentive agreements with the State of Ohio.
“We welcome this investment in Toledo Machining as it is an acknowledgement of the high-quality components that have been produced by our skilled work force for many years,” said Scott Garberding, senior vice president and head of manufacturing for Chrysler. “We are appreciative of the support we have received from the State of Ohio in providing the incentives necessary to make this investment possible. Being able to bring new technology to this facility secures its long-term future.”
The Toledo Machining Plant produces steering columns for the TAC and assembly plants in Michigan, Illinois, Ontario, Canada, Mexico and Venezuela, according to Chrysler.
The plant also produces torque converters for automatic transmissions produced in plants located in Indiana, Michigan and England.
The collaborative efforts between Chrysler, the State of Ohio and local governments support more than 3,400 new or existing jobs for people in Northwest Ohio, according to multiple sources.
Since June 2009, the Chrysler Group has invested nearly $3.2 billion in its U.S. facilities and has made significant progress toward building a profitable enterprise, including a net profit of $116 million in the first quarter of 2011.