Chrysler LLC is preparing to invest $366 million in its Jefferson North assembly plant in Detroit that would create or retain an estimated 1,400 jobs.
The state of Michigan said Friday that tax credits have been approved to encourage the automaker to finalize plans to boost manufacturing flexibility for Chrysler's next generation of sport utility vehicles.
A Chrysler spokesman said the privately held automaker has yet to make a final decision on its plans, but noted that the tax credits are a key step toward moving forward.
"It's a precursor to building the business case for the investment," said spokesman David Elshoff. "This is part of the process of building the case."
Jefferson North was one of the few Chrysler assembly plants to receive a commitment for new products beyond 2011 in the new, four-year contract tentatively agreed to by the automaker and the United Auto Workers.
In the proposed agreement, the plant will continue building Jeep Grand Cherokees and Commander SUVs through their current product life-cycle, then transition to replacement products built on Chrysler's new "unibody" architecture.
A ratification vote on the contract by about 45,000 UAW-represented Chrysler workers was expected to be completed by early today. State officials said Friday that tax credits approved by the Michigan Economic Growth Authority would encourage Chrysler's investment and will "create or retain up to 1,419 jobs, including a minimum of 400 directly by the company."
The plant employs 2,400 workers, Elshoff said.
The state tax credit is valued at more than $4 million over seven years.
The city of Detroit is also considering a 12-year-long abatement worth $40.2 million for the project.
"A strong Chrysler is important for Michigan and Michigan workers, and we stand ready to help them thrive," Gov. Jennifer Granholm said in a statement.
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