By MARSHA STOPA of The Oakland Press
Five automotive and technical companies are expanding operations in southeastern Michigan, expected to create about 2,815 jobs.
Auto suppliers Robert Bosch Corp., Faurecia and Akebono Corp. announced plans, along with information technology services company HTC Global Services and Advanced Technology Services, an industrial parts and repair provider, said outgoing Gov. John Engler.
Engler credited nearly $40 million in Single Business Tax credits with making Michigan a competitive choice for these companies, expected to bring more than $146 million in revenues to the state over the life of the tax credits, ranging from seven to 17 years.
The expansion of the auto suppliers is clear evidence of the current realignment of suppliers in the industry, said James Sanfilippo, executive vice president with Automotive Marketing Consultants Inc. in Warren.
"It's business Darwinism," Sanfilippo said. "The strong survive, flourish and expand. Domestic carmakers are pushing hard to align costs and quality to compete more successfully with the import brands.
"These are (among) the strong ones. They've got a strong portfolio and position in the business," Sanfilippo said.
Bosch, a German-based supplier, is moving some corporate positions to a new facility in Plymouth Township, where it is expanding its automotive original equipment headquarters by constructing 240,000 square feet of offices, testing labs and research and development facilities.
The expansion is expected to create 1,125 new jobs by 2022 including up to 700 directly by Bosch. It received a 17-year, $20.8 million tax credit.
Bosch currently employs 4,322 in nine Michigan locations.
Faurecia Automotive Seating Inc., a French-based company, is Europe's third-largest auto supplier with 150 locations in 27 countries. It will build a 97,500-square-foot seating module facility in the Auburn Hills Business Park that is expected to create up to 389 jobs, with 205 created directly by Faurecia.
It chose Michigan over a site next to its plant in Ontario because of a 10-year, $7.3 million tax credit. Faurecia produces six major vehicle modules: seat, cockpit, door, acoustics, exhaust and front end. Faurecia recently won a contract to supply assembled seat modules to the General Motors Corp. Lake Orion plant.
Faurecia currently employs 20 at its North American technical center in Troy. Faurecia was created in 1997 by the merger of French suppliers Bertrand Faure Automobile and Ecia, a subsidiary of PSA Peugeot Citroen.
Akebono will relocate its Farmington Hills staff and add 190 new jobs at a facility in Northville Township to expand its engineering and test facilities. A Japanese supplier, Akebono is a leading brake component manufacturer with 162 employees in Michigan.
Akebono will invest $54 million in Northville, $21 million for real estate and $33 million for equipment because of a 10-year, $3.6 million tax credit.
The expansion is expected to create another 100 indirect jobs. Akebono was considering a site adjacent to one of its Kentucky plants.
HTC Global Services, with headquarters in Southfield, plans to consolidate its project development lab and expand operations in Troy, adding 500 direct jobs and another 290 indirect jobs over the next 10 years. HTC plans to transfer 300 employees from Illinois, as well.
It plans to invest $20 million in building improvements and equipment and was granted a 10-year, $7.2 million tax credit.
Peoria, Ill.-based Advanced Technology Services, an industrial and computer technology services company to manufacturers worldwide, plans on leasing 40,000 square feet in Livonia in order to meet an aggressive growth plan.
It plans on adding 132 positions over five years, also creating 86 indirect jobs. Advanced Technology Services was granted a seven-year, $997,000 tax credit for its $4.6 million investment, $3.9 million in real estate and $750,000 in equipment.
Advanced Technology Services currently employs 18 in Livonia and will likely close down its regional center in Medina, Ohio, after this expansion.
Sanfilippo was glad Michigan has gotten competitive with Southern states like Alabama and Mississippi, which get ample press coverage when automakers locate a major assembly plant.
"Michigan gets three or four OEMs expanding here with 2,800 jobs and it is significant," Sanfilippo said. "It's as many jobs as an assembly plant, and it's a blip -it goes unnoticed."
(The Associated Press contributed to this report.)
©The Oakland Press 2003