Ameren Missouri’s Energy Incentive Part of General Motors Investment
General Motors (GM) will infuse its Wentzville, Missouri, plant with $1 billion to make the next generation of mid-sized pickup trucks. That investment plan utilizes public and private stimulants, including the Ameren Missouri Smart Energy Plan economic development incentive, which provides a 40 percent discount on base electric rates to qualifying businesses for five years.
“This is part of our comprehensive strategy to invest in growth areas and strengthen our U.S. manufacturing base,” said Mark Reuss, GM president. “GM sells more pickups than any other automaker and we have aggressive plans to build on our strengths.”
The Wentzville plant supports 12,241 jobs throughout Missouri’s economy and generates more than $2 billion in GDP annually. Out of the state’s 227 automotive suppliers, 178 supply GM, accounting for more than $700 million spent by GM on Missouri suppliers.
“The General Motors expansion is great for Missouri. With the Ameren Missouri Smart Energy Plan, we are investing in new technology and electrical infrastructure to benefit all customers while providing one of the best economic development incentives in the country to bring even more business to the communities we serve,” said Marty Lyons, chairman and president of Ameren Missouri. “This is a great competitive edge to continue growing the local workforce and our economy.”
Stemming from Senate Bill 564 – legislation passed in 2018 that updated Missouri’s energy laws – the Smart Energy Plan economic development incentive (EDI) is crafted to encourage investment in the state, adding jobs and spurring economic growth in local communities.
The program is offered to qualifying new and existing businesses seeking to locate or expand in Missouri. Qualifying business customers could receive an average of a 40 percent discount from base rates over an agreement term of five years.
Lauded as a win-win for businesses and residential customers, Ameren Missouri notes the additional energy requirements will help enhance system efficiencies and distribute the fixed costs of generating and delivering electricity across a broad customer base, thus helping to keep rates lower for all customers. Also, the attraction of new jobs and investment multiplies throughout the region in the form of increased spending in retail establishments, new housing starts, and population growth.
The GM investment plan includes spending $1 billion at the Wentzville plant and another $500,000 with plant suppliers. The plan represents one of the largest single project investments from the private sector in Missouri.
The Wentzville plant’s paint shop, body shop, and general assembly areas will receive upgrades, including new machines, conveyors, controls, and tooling.
“We are excited and proud that General Motors, an American multinational corporation with more than 100 years of automotive industry experience, is renewing its commitment to our region with this investment in the Wentzville plant. This is truly a historic moment for Missouri, and it was an honor to be part of today’s announcement,” Gov. Mike Parson said.
“This shows that we have the workforce, infrastructure, and the economic development tools needed to secure major investment in Missouri,” said Rob Dixon, director of the Missouri Department of Economic Development. “Our team, along with partners across the state, look forward to working with GM and others to build on this momentum and move Missouri forward.”
Since reintroducing the Chevrolet Colorado and GMC Canyon in 2013, GM has sold more than 700,000 midsize pickups in the U.S.