Top 10 subsidies under Whitmer: Michigan spends $900M; firms create 4,200 jobs

• Many of the biggest corporate incentives paid by Michigan under Gretchen Whitmer have yet to produce any jobs
• Many are related to electric vehicles and have been delayed by a slowdown in the industry
• Critics say subsidies are a failure; a state official says ‘these projects are showing continued progress’ 

Gaining 3,000 new automotive jobs sounded like a victory in 2019 as Gretchen Whitmer closed out her first year as Michigan governor.

“Today’s announcement proves that in Michigan …we’re ready to build, test and deploy the cars of the future,” Whitmer said Dec. 17 as she announced Ford Motor Co.’s plans to expand two of its factories. “Let’s get to work.”

Five years after the fanfare, Ford has received $102.8 million in from three job-growth subsidy awards, but has yet to create a single job, based on state criteria in the subsidy. That’s according to documents reviewed by Bridge Michigan to analyze the success of corporate incentives since Whitmer took office in 2019.

It’s hardly an exception during Whitmer’s tenure.

Since she became governor in 2019, Michigan has agreed to deals that would pay $2.46 billion to 340 companies, which promised to invest $35 billion and create 65,491 jobs.

Through Dec. 31, 2024, the firms have invested $12.3 billion and created 13,079 jobs.  

Because some projects fell through or remain in progress, Michigan has invested $995 million or $76,076 per job. Several contracts advance payments not for creating jobs, but for milestones as simple as leasing buildings. 

No doubt, economic development comes with risk, and the coronavirus pandemic upended the economy in Michigan and globally for nearly half of Whitmer’s term. Yet during that time, Michigan added a $2 billion incentive program as it vowed to compete at a historic scale with other states for more jobs.

Related:

• Whitmer subsidy record: Companies get $1 billion; jobs fall short of promises
• After $1B and mixed results, Michigan lawmakers cooling on corporate incentives

Ford and other corporations receiving the top 10 biggest deals under Whitmer have created 4,291 jobs, one-fifth of the 24,966 promised, according to the Bridge analysis based on initial awards intended to spur job growth. 

All the projects are connected to electric vehicle manufacturing. 

Also missing hiring targets: Nine projects that promised to create jobs in exchange for $1.8 billion in incentives through the Strategic Outreach and Attraction Reserve (SOAR) Fund, first used by the state in January 2022 to launch large-scale deals and job growth. 

“I can't think of a high-profile, subsidized project announced by the MEDC under the Whitmer administration that has come true as originally designed and promised,” John Mozena, president of the Center for Economic Accountability, told Bridge.

Whitmer’s staff did not respond to Bridge’s request for comment. 

However, state officials note that, among the biggest job-creation deals, most are still active, even if they’re delayed. 

Otie McKinley, a spokesperson for the MEDC, said the projects are so big they will take years to develop and hire workers.

“These projects are showing continued progress in building out their facilities required to hire their workforce,” he said.

The top 10 jobs deals

Michigan used a variety of subsidies on the top 10 deals:

• Six were through the SOAR Fund, which was seeded with $1 billion to lure electric vehicle and manufacturing plants to Michigan. 
• Two originated under the Good Jobs for Michigan Program, which was started under former Republican Gov. Rick Snyder. The program expired in 2019, Whitmer’s first year as governor. 
• The remaining two relied on long-standing subsidies capped at $10 million each, the Michigan Business Development Program and Jobs Ready Michigan.

All of the incentives also are involved in numerous other economic development deals statewide. Here’s a look at the performance of the programs under Whitmer:

• SOAR: No jobs through Sept. 30, 2024, despite $1.8 billion in state commitments and $900 million spent. Nine separate deals, including two with Ford, through year-end 2024 have promised to create 14,779  jobs and $17.5 billion in investment. 
• Good Jobs: A 2017 program that allowed businesses to keep state tax revenue generated by new jobs, it was used in deals with six companies. But state records indicate only one, KLA Corp. of Ann Arbor Township, received money, hiring 511 workers.
• Michigan Business Development Program: This longstanding job-growth incentive is the most used in Michigan, with over 320 companies receiving awards in Whitmer’s tenure. Among them, 141 have created no jobs. Michigan has pledged the companies $344 million since 2019, and spent $94 million.
• Jobs Ready Michigan: This program awarded 28 new or expanding companies $25.3 million in training funds. A total of $7.3 million has been spent. Promised job growth is reported when made official, but public information on actual hiring is not available without a Freedom of Information Act request.

Slow progress 

Here’s a look at where the Top 10 deals stand as of Sept. 30, 2024. The data was released in March and is the most recent public report available.

Fiat Chrysler Automobiles

Now Stellantis, the corporation agreed to a complex set of incentives in 2019 as part of a $25 billion factory overhaul that resulted in the new Mack Engine Plant in Detroit. The company fulfilled hiring 3,850 workers for Mack Engine, but state records show no progress on the 2,500 remaining hires. Stellantis would not release to Bridge how many workers are now employed at the new Detroit factory. And the Good Jobs For Michigan award — targeted for 1,400 hires in Warren — was never finalized. 

• Planned subsidy: $115 million and several tax breaks
• Jobs promised: 6,350
• Jobs delivered: 3,850
• Actual subsidy so far: $10 million
• Status: Stellantis met the criteria for 3,850 jobs. The deal for the remaining jobs remains in place, though there is no progress on it. 

Ford Motor Co.

Whitmer called Ford’s $1.16 billion plan to retool five Michigan factories “another historic economic win for the state” when it was announced in June 2022. Much of the work was to enable EV production.

• Planned subsidy: $100.8 million from SOAR and a $34 million tax break for investment in a total of 10 plants.
• Jobs promised: 3,030 plus 230 from the tax break
• Jobs delivered: 0
• Actual subsidy: $0
• Status: The state canceled the incentive deal. 

Ford — Wayne and Dearborn

The Dearborn automaker in 2019 planned a $1.4 billion retooling at its Dearborn and Wayne factories, in part to increase electric vehicle production capacity. It accepted a Good Jobs award worth $26 million in diverted payroll taxes and a $9 million tax break.

• Planned subsidy: $35 million
• Jobs promised: 3,000
• Jobs delivered: 0
• Actual subsidy so far: $0 from Good Jobs; tax breaks in effect
• Status: Ford invested about 60% of its promised $1.46 billion. The incentive contract remains active.

Ford Blue Oval Marshall

Ford was awarded subsidies again in 2023 when it sought to build a $3.5 billion EV battery plant in Calhoun County. The state pitched in two forms of SOAR funding for both land development and construction. Subsidies beyond the MEDC include an additional $120 million from the Legislature and $300 million for road work.

• Planned subsidy: $395 million in cash, $2.2 billion in other subsides
• Jobs promised: 2,500, later downsized to 1,750
• Jobs delivered: None so far
• Actual subsidy so far: $102 million
• Status: Ford says plant will open in 2026.

Gotion

The US-based division of China’s Gotion High-Tech Ltd. chose the Big Rapids area for a $2.3 billion EV battery component factory in 2022. 

• Planned subsidy: $175 million in SOAR funding, including for land and infrastructure
• Jobs promised: 2,350
• Jobs delivered: None so far; the deadline has been extended to 2031
• Actual subsidy so far: $50 million
• Status: The project is on hold amid a lawsuit between Green Oak Charter Township and Gotion.

Our Next Energy

The start-up EV battery maker planned a $1.6 billion factory in western Wayne County in 2022.

• Planned subsidy: $200 million from SOAR and a $21 million loan
• Jobs promised: 2,112
• Jobs delivered: 0
• Actual subsidy so far: $70 million plus the $21 million loan
• Status: The company has invested $117.6 million, lost some funding and reported layoffs. It is running one pilot production line and is shifting focus from EVs to battery storage systems.

General Motors Corp.

The Detroit automaker announced a $4 billion project in 2022 to retool and add space at its Orion Township Assembly plant in Oakland County to make electric trucks.

• Planned subsidy: $480 million from SOAR
• Jobs promised: 1,840
• Jobs delivered: 0. In addition, the factory now has 229 employees, down from the 1,000 it promised to maintain. 
• Actual subsidy so far: $480 million
• Status: Progress has been delayed due to the EV market.

Ultium/LG Energy Solution

Initially a GM partnership, the project involved construction of a 2.8-million-square-foot  EV factory near Lansing starting in 2022. 

• Planned subsidy: $186 million
• Jobs promised: 1,360
• Jobs delivered: 0
• Actual subsidy so far: Ultium received $120 million, and another $66 million for infrastructure.  
• Status: GM is selling the factory to LG Energy Solution, which says it plans to open battery production lines after the deal closes.

Magna Electric Vehicle Structures

The auto supplier renegotiated a 2021 award to build a new, $70 million factory in St. Clair to build parts for GM’s Hummer EV. It received a commitment from the Michigan Business Development Program for $7.5 million, revised upward from $1.5 million, along with a tax credit. 

• Planned subsidy: $7.5 million plus a tax credit
• Jobs promised: 1,224 after revision
• Jobs delivered: 441
• Actual subsidy so far: $4.6 million
• Status: Still an active contract. The factory is operating.

LG Energy Solution

The Holland factory of the South Korean EV battery maker announced in 2022 it is investing $1.7 billion to expand. 

• Planned subsidy: $20 million through Michigan Business Development Program and Jobs Ready Michigan
• Jobs promised: 1,200
• Jobs delivered: 0
• Actual subsidy so far: $0
• Status: Construction is underway.