General Motors Co. plans to build a new Cadillac small car at a plant in Lansing, adding 600 jobs, the city's mayor said Wednesday.
Virg Bernero said the automaker plans to invest $190 million at the Grand River Assembly plant to produce the new Cadillac ATS, a compact version of the Cadillac CTS luxury car.
GM said Chief Executive Officer Dan Akerson and United Auto Workers President Bob King will be at the plant Thursday morning to make a "positive news announcement for Lansing Grand River."
Bernero, who is the Democratic nominee for governor, said he and his staff have been working with GM since May to bring the new investment to the plant.
One of the keys to making it a reality, Bernero said, was an offer to the company of a 25-year, 100-percent personal property tax exemption.
"Once again, Lansing is proving that we are a centerpiece of GM's global comeback strategy," Bernero said. "Nobody builds cars better than Lansing's UAW work force, and nobody works harder to help GM grow and succeed than we do."
GM, which received $50 billion in government aid to get through its bankruptcy last year and is 61 percent owned by U.S. taxpayers, is planning an initial public offering that will allow the government to begin reducing its stake.
The government hopes to get all of its money back through the IPO and subsequent stock sales.