LANSING, Michigan -- Governor Jennifer M. Granholm joined state, local, and company leaders in Ann Arbor today to announce that Tokyo-based Toyota Motor Corporation plans to invest $150 million in a new, state-of-the-art research and development facility in York Township. The much-anticipated project is expected to create more than 670 Michigan jobs, including 400 directly by the company, and anchor future investment and jobs in the state.
"Toyota's investment here underscores Michigan's importance as a vital center of the global auto industry," Granholm said. "This decision is a testament to this state's comprehensive and aggressive strategy for attracting and retaining automotive investment and jobs."
The Granholm administration put together an incentive package valued at more than $38.9 million to convince Toyota Technical Center USA, Inc. (TTC) to create its new, state-of-the-art R&D facility in Michigan. The Michigan Economic Development Corporation approved the tax credit today. The Governor also worked with the state Legislature to convey more than 600 acres of state land to bring the automaker's investment and jobs to Michigan.
The expansion further cements Michigan's standing as a global automotive research and development leader. More money is invested in automotive-related R&D in Michigan every year than in all other 49 states combined, according to the National Science Foundation and the Center for Automotive Research.
"Toyota, its many affiliates and suppliers have made significant investments here for 25 years, but this decision is the most important of them all. We look forward to a successful partnership far into the future," Granholm added.
Toyota Technical Center USA, Inc. was established in 1977 and has its headquarters in Ann Arbor. Toyota currently has 505 Michigan employees. Just last year Toyota completed work on the new Calty Design Research studio next to the Technical Center.
"We think the York Township property is large enough to give us the assurance of being able to plan for TTC's short term as well as long term growth," said Dr. Akihiko Saito, Executive Vice President, Toyota Motor Corporation. "The North American growth in sales opened the door for Toyota to establish our manufacturing operations which in turn supported the localization of our R&D presence. The York Township property will provide adequate space to conduct our engineering and research for Toyota's core North American vehicle development programs."
A University of Michigan economic analysis estimates that 277 indirect Michigan jobs will be created as a result of increased economic activity associated with the expansion, in addition to the 400 jobs retained directly by the company. The project is expected to generate more than $1.2 billion in personal income for Michigan workers over the life of the tax credit.
"This is a huge project," MEDC President and CEO Don Jakeway said. "Michigan's second-to-none workforce and business-friendly climate were decisive factors in securing this substantial investment."
TTC is just one of several major auto industry investments for Michigan announced over the past several months, including those by DaimlerChrysler, General Motors, Nissan, and Detroit Diesel. These five projects alone will generate more than $1.2 billion in investment and create and retain an estimated 27,000 Michigan jobs.
