©2016 Michigan Economic Development Corporation

AGS Automotive Systems to Expand in Sterling Heights, Add 242 New Michigan Jobs

Tuesday, October 17, 2006

Michael Shore, MEDC
(517) 335-4590

Auto Supplier Chooses Michigan for Capital Investment, Job Creation

Governor Jennifer M. Granholm today announced that Toronto-based AGS Automotive Systems (AGS) plans to invest in capital and equipment to expand its automotive parts assembly and other manufacturing capabilities by reopening a facility in Sterling Heights. The project will create 242 new jobs, including 130 directly by the company. Assistance offered through the Michigan Economic Development Corporation helped convince the company to choose Michigan over other competing international sites.

An economic analysis conducted by the MEDC estimates that increased economic activity created by the expansion will generate an additional 112 indirect Michigan jobs, in addition to the 130 created directly by the company. The project is expected to generate more than $56 million in personal income for Michigan workers over the life of the tax credit.

The AGS expansion is one of 14 economic development projects the Governor announced today. In all, they are expected to create and retain a total of 8,572 Michigan jobs.

Established in 1947, AGS is a full service automotive supplier employing more than 1,000 at six North American locations in Canada and the United States. The company specializes in bumper assemblies, with capabilities that include stamping, plating, painting, plastics, sequencing and assembly. AGS customers include General Motors, DaimlerChrysler and Delphi. The company currently has 52 employees at its facility in Troy. AGS reported $320 million in sales revenue in 2005.

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www.michigan.org.

AGS Automotive Systems
Economic Analysis
Summary Estimates
(All estimates in 2006 dollars)

TOTAL JOBS CREATED

242

Direct

130

Indirect

112

NET POSITIVE STATE REVENUE IMPACT

$3,783,000

Revenue Foregone

$576,000

Revenue Gain

$4,359,000

Average Weekly Wage

$420

Personal Income Generated Over

$56,629,000

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