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JANUARY 2005

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MICHIGAN SPOTLIGHT



Hitching a Ride
On the Power Train

    General Motors Corp. is in the midst of a national, even international, upgrade pattern. The company is pouring capital into plants in Oklahoma City, Okla.; Shreveport, La.; and Fairfax, Kan., at the same time it shuts down a van plant in Baltimore, Md., and consolidates various headquarters and R&D operations. It's also considering an investment in its Fort Wayne, Ind., plant, as well as potential investments totaling $448 million in its Flint truck assembly and engine plants. Within that context, the ongoing Michigan expansion projects from GM alone would be enough to make any state's total project quota:
  • A new vehicle assembly plant and stamping plant in Lansing-area Delta Township that together comprise some US$1.1 billion in investment;
  • $385 million in a consolidation of engineering at the Pontiac headquarters of GM's powertrain division, bringing together operations and 1,600 jobs from five other locations;
  • $350 million in the Warren transmission plant as part of a $720-million all-wheel-drive transmission partnership with Ford Motor Co.;
  • $300 million investment in Orion Township's assembly plant for the Pontiac;
  • $60 million in the Flint Metal Center;
  • $10 million in a new performance build center for GM Powertrain in Wixom;
  • The move of Saab Cars USA's headquarters from Norcross, Ga., to GM's world headquarters in Detroit.
Company and government officials break ground on the new $10-million GM Powertrain project in Wixom, one of many facility investments nationally for the Detroit-based manufacturer.

      Meanwhile, the Ford Motor Co. started up its Dearborn truck plant to much fanfare in April 2004. It was the first new U.S. assembly plant for Ford since 1987, when it opened AutoAlliance International Inc. in Flat Rock, Mich., in partnership with Mazda. As it happens, the Flat Rock plant is receiving investment too, to the tune of $5 million in training grant money from the U.S. government to train workers building the 2005 Mustang.
      But the state has known for a long time that foreign automakers are pushing both the envelope and construction agendas in North America. Witness the Global Engine Manufacturing Alliance (GEMA) among DaimlerChrysler, Hyundai Motor Company and Mitsubishi Motors Corporation. Early in 2004, on top of a $400-million plant that was already under construction, GEMA announced a second engine plant that would receive another $323 in investment. Together, the two facilities, totaling some 1 million sq. ft. (92,900 sq. m.), will employ approximately 842 people.
      In addition to the $20-million incentive package it received from the state, GEMA garnered the land for $1 from the Monroe County Industrial Development Corporation. It also got special community college training, and TIF-funded road, sewer, lighting and water improvements, including an $8-million wastewater treatment facility.
      In Fowlerville, nearly halfway between Detroit and Lansing along I-96, Aisin Holdings in October 2004 announced its purchase of 750 acres (304 hectares) for a test track and proving ground facility, after two years of searching.
      "It is strategically important for Aisin to be geographically close to its customers - manufacturers and suppliers alike," said Don Whitsitt, senior vice president of Plymouth, Michigan-based Aisin World Corp. of America, an Aisin Group company. "We chose Fowlerville for these reasons, as well as its proximity to both Michigan State University and the University of Michigan."
      Tier 1 supplier Aisin Group has 26 manufacturing, R&D and sales facilities in North America, employing 6,400 people. The company's 2003 sales in North American totaled $1.5 billion, fueled in large part by new work with Toyota and by body component and sunroof sales. The company announced in March 2004 that it planned to exceed $2.7 billion in sales on the continent by 2007, and hoped to employ 10,000.
     
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