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Apparent Edge for Michigan

"The Marshall facility will be part of BorgWarner's global technology network that gives us a competitive edge as a product leader in engine and transmission systems," said John J. McGill, president and general manager of BorgWarner Cooling Systems. "We have been delighted by the assistance of both state and local economic development officials in the selection process. This decision has been a difficult one. We have exceptional employees in both Michigan and Indiana, and we knew that some of those workers would have to relocate. The economic package presented by the state certainly tipped the scale in Michigan's favor."

Michigan also beat Ohio in bringing Tower Automotive's new state-of-the-art manufacturing facility to Delta Township rather than Bellevue, Ohio. The company plans to invest about $29 million in its new Delta Township facility, including building, machinery and equipment costs. Construction of the new facility was slated to begin in late 2000, with production expected to start in January 2002. Michigan is providing $728,000 in tax abatements and $303,000 in job-training assistance.

Tower Automotive produces a broad array of assemblies and modules for vehicle structures and suspension systems for original equipment manufacturers of automobiles and light trucks including Ford, DaimlerChrysler, General Motors, Nissan, Fiat, BMW and Volkswagen. Products include exterior panels, body structural assemblies, suspension components, engine cradles, full frame assemblies and modules.

One exception to the trend of research and development moving to metro Detroit, according to Virag, are the fields of pure research -- that not yet ready for commerce -- and electronics research that will eventually have automotive uses. "These software-oriented concerns are all over the country, but most prevalently in California, Massachusetts, Texas and Florida," says Virag. Also, automotive design centers have historically been located in Southern California amidst, arguably, America's most car-centric culture.

Nissan's Technical Center North America business unit perfectly illustrates research and development location trends and traditions. The major technical center facility, an $80 million investment, is in Farmington Hills, Mich. Engine testing and emission certification work is done in Ann Arbor, Mich. Vehicle performance development is handled in Los Angeles and Stanfield, Ariz.; basic research is done in Cambridge, Mass. There are also technical liaison offices at the company's assembly plant in Avon, Ohio, and its manufacturing facility in Smyrna, Tenn.