The Detroit News reports that a large North American automotive parts supplier plans to invest $60 million and add 450 jobs as it acquires the New Boston Chrysler Mopar site in Wayne County, Mich. The jobs will be new, full-time engineering and manufacturing positions that the challenged Michigan economy badly needs.
Improving the supply chain
According to the Michigan Economic Development Corp., the deal between Mopar and major parts supplier Brose North America will offer major business expansion opportunities in Michigan. Gov. Rick Snyder spoke of what the deal means for other businesses considering putting down roots in the state.
“Brose, with 650 employees currently in Michigan, is a global leader and vital to our automotive supply chain,” said Snyder. “The company’s decision to invest so heavily in Michigan is a strong statement of the great opportunities that, thanks to our business climate improvements, means Michigan offers growing companies one of the best business climates in the country.”
Tax incentives that encourage business expansion
Brose North America, which supplies mechatronic components and electric motor drivers for 80 automotive manufacturers and more than 30 suppliers, will reportedly receive a $3.5 million tax incentive to buy out the former Chrysler Mopar site located in New Boston, on the outskirts of the Detroit area. The Huron Charter Township in Wayne County will also grant Brose a 12-year property tax abatement.
The new Brose Mopar plant will produce door modules for Chrysler’s Jeep brand in the Toledo North assembly plant. It will supply the same for several undisclosed Ford models, according to a Brose press release.
Jobs created by the Brose North America Mopar transaction will be in Wayne County and at Brose’s locations in Auburn Hills and Warren. The parts supplier has had a North American presence since 1993. The company’s U.S. headquarters and research and development center is located in Auburn Hills, and it also has a manufacturing center in Warren. In 2011, Brose North America generated $1 billion in revenue.
More workers needed soon
Brose’s rapid expansion throughout the region has necessitated additional workers to meet the demands of increased manufacturing orders, said Jan Kowal, president of Brose North America. As the expansion continues, additional labor and design positions will be required.
In a recent meeting with Gov. Snyder in Europe, Brose Vice President of Finance Scott Trujillo discussed the future of the relationship between Brose and Mopar.
“The support of the Michigan government was instrumental in our decision to open the new location here,” said Trujillo. “Talks began in earnest during Gov. Rick Snyder’s visit to our sales, engineering and production location in Würzburg, Germany, this March.”