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Suppliers, R&D Shops
Drive Auto Industry's Geography
(cover)
Michigan Takes
Nothing For Granted

Design Collaboration
Drives Site Choices

New Facility
Requirements Take Shape

Apparent Edge
for Michigan

GM: In Step
with Site Trends

Design Center Gets
New Lease on Life

Southern Sites
Set to Expand

Honda Site 'More
than a Factory'

Toyota Plans Major
Capacity Gains

Hoosier State Touts
Major Projects

Suppliers Weigh in
With Expansions

UK Automakers Pond On
Non-Euro Status

Request Information
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North American Auto Industry


New Facility
Requirements Take Shape

As the trend of tier one suppliers concentrating in the area to serve the research needs of the major auto makers continues, and especially as they acquire tier two suppliers in order to make entire sub-assemblies rather than simply parts, Kegley is seeing some interesting trends in facilities requirements. For one thing, buildings are getting a lot bigger, with 100,000 to 200,000 sq. ft. (9,300 to 18,600 sq. m.) a basic requirement. Speculative construction rarely delivers the highly specialized product these technical centers require, which often is a blend of attributes from other kinds of facilities. "A company may need an area for prototype development and one for engineering, along with corporate administration and show rooms and demonstration areas," says Kegley. "Tier one suppliers are held responsible for, say, the complete interior package, including the instrument panels and seats. They need to develop complete prototypes as well as design the tooling and parts."

Dan Labes, senior vice president of brokerage Grubb & Ellis, in Detroit, has seen literally dozens of tier one automotive supplier technical centers arriving in the area, as well as reinvestment by the Big Three auto makers. "Lear, Magna, Johnson Controls, Robert Bosch -- the list goes on and on," he says.

Automotive design centers have historically been located in Southern California amidst, arguably, America's most car-centric culture.

Labes, like others, credits the gradual restructuring of the auto industry for the flurry of site selection and facilities development activity. "It used to be that the automotive seat company was given a design and told to prepare 10,000 seats. Now, the same company has to design and engineer and prototype and test and produce seats, and also supply the dashboard and steering wheel and other interior products. The rise of these new technical centers is necessary." (It's not as if the auto makers have laid off their own design and talent. They still closely supervise the process. "It's not totally hands off," says Labes. "The Big Three will still each have plenty of design and engineering staff.")

Typically, observes Labes, tier one suppliers will locate a technical center close to their main customer's facility, or open satellites near Ford's headquarters in Dearborn, General Motors in Warren and DaimlerChrysler in Auburn Hills. The latter town has been attractive lately, because there are no more suitable parcels in the previously developed cities of Detroit, Troy, Plymouth and Livonia. "Auburn Hills is currently the end point, after which there's no more properly zoned land or utilities until Fenton or Flint," says Labes. Farmington Hills and Novi are also active areas.

Some research and development facilities are a little more far-flung within the State of Michigan. BorgWarner Cooling Systems of Michigan recently selected Marshall, Mich., west of Detroit, for its new high-technology research and development facility over Indianapolis, with the help of $1.9 million in tax abatements and $59,000 in job-training assistance.

The new facility will house all of BorgWarner Cooling Systems' U.S. based research, product and applications engineers and technicians. The facility will develop highly engineered engine cooling system solutions for improved engine temperature management. The project includes a company investment of $7.7 million, with land, building, machinery and equipment costs. BorgWarner Cooling Systems of Michigan designs and supplies cooling system fan clutches and fans primarily for the sport utility, light truck and commercial vehicle markets. BorgWarner Cooling Systems currently employs 244 people in Michigan.

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