©2016 Michigan Economic Development Corporation

BorgWarner Corporate Headquarters Will Move to Auburn Hills

Tuesday, September 16, 2003

Jennifer Owens
(517) 335-4590

Relocation to Create 146 New Jobs for Michigan Workers

Governor Jennifer M. Granholm announced today that assistance from the Michigan Economic Development Corporation (MEDC) has helped convince BorgWarner Inc. to relocate its corporate headquarters from Chicago to Auburn Hills.

The company plans to invest $8.9 million in the project and create 146 new jobs, including 90 directly by the company.

“BorgWarner has been a longtime partner with Michigan, creating good-paying jobs for many workers,” Granholm said. “We appreciate the company’s continued commitment to Michigan. BorgWarner’s decision to bring its headquarters here is a testament to our top-notch workforce and excellent business climate.”

BorgWarner is a leading global supplier of highly engineered components and systems for vehicle powertrain applications.

The MEDC offered a Single Business Tax credit worth more than $2.6 million over the next 10 years to help convince BorgWarner to relocate its headquarters to Auburn Hills. The company currently employs nearly 1,000 people at five different locations in Michigan.

“BorgWarner is grateful to the Michigan Economic Development Corporation and the people of Oakland County and Auburn Hills for their positive attitude and spirit of cooperation in bringing BorgWarner to the state of Michigan,” said Tim Manganello, BorgWarner chairman and chief executive officer. “We expect there will be significant benefits to a Detroit area location including closer connections with our global customers, opportunities for increased collaboration with the 450 employees at the BorgWarner Powertrain Technical Center in Auburn Hills and enhanced industry visibility.”

The city of Auburn Hills is expected to approve a tax abatement valued at approximately $686,000 for eight years to further facilitate the project.

“The addition of BorgWarner’s headquarters not only adds to the status of Auburn Hills but brings another high quality facility to the community,” said Auburn Hills City Manager William Ross. “Because they already have a strong presence here, we know them and know that any community would be happy to have them. We are pleased that they have decided to expand in Auburn Hills.”

The MEDC worked closely with Oakland County to bring the project to Auburn Hills. Construction on the new facility is expected to begin in early 2004.

“BorgWarner is the type of firm that Oakland County targets for business attraction,” said Oakland County Executive L. Brooks Patterson. “I know it was a very competitive process between Illinois and Michigan. Oakland County has all of the business attributes that headquarter firms require: an educated workforce, good schools, cultural institutions and access to market.”

According to an economic analysis conducted by the University of Michigan, it is estimated that 90 jobs will be created directly by the headquarters relocation with another 56 spun off as a result of increased economic activity. The project will result in a net state revenue gain of more than $9.9 million over the life of the Single Business Tax credits.

The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.

BorgWarner Inc.
Economic Analysis
Summary Estimates
(All estimates in 2003 dollars)

Revenue Foregone$2,618,000
Revenue Gain$9,904,000
Average Wage$1,926/week
Personal Income Generated Over
Life of the Tax Credit Agreement


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