©2016 Michigan Economic Development Corporation

Brose North America to Create New R and D Facility in Auburn Hills

Thursday, October 10, 2002

Susan Shafer
(517) 335-6397

Expansion to create up to 562 new jobs in Michigan

Governor John Engler announced today that assistance from the Michigan Economic Development Corporation (MEDC) has helped convince Brose North America to expand in Auburn Hills, securing up to 562 jobs for Michigan workers.

Brose North America, a leading automotive supplier, plans to invest approximately $26.2 million in a new building, machinery and equipment to expand its research and development capabilities.

“Michigan is home to the largest base of automotive research and development on the continent,” Engler said.“The expansion of Brose North America in Auburn Hills affirms Michigan’s reputation for creating new, high-tech opportunities for companies and new jobs for Michigan families.”

Brose’s parent company, Brose International, had weighed whether to place the new facility in Auburn Hills or Ontario, Canada.The MEDC today awarded Brose a Single Business Tax credit worth up to $6.5 million over an eight-year period and up to $130,000 in Economic Development Job Training grants to encourage the company’s decision for Auburn Hills.In addition, the city of Auburn Hills recently approved a local tax abatement worth more than $1.1 million over eight years to support the expansion.

Brose North America President Jan Kowal said the company is looking forward to the new opportunities that will open up as a result of the expansion.

“We are delighted the state of Michigan and city of Auburn Hills support Brose’s construction of a North American headquarters,” said Jan Kowal, president of Brose North America.“Our state-of-the-art facility will be dedicated to advancing automotive technology, benefiting the local community, our customers and current and future employees of Brose North America.”

According to an economic analysis conducted by the University of Michigan, it is estimated that Brose North America’s expansion in Auburn Hills will create a total of 562 jobs in the state, including 260 directly by the company.The company’s operations will result in total net state revenue increases of more than $20 million during the life of the tax credit.

“We are pleased that Brose North America has chosen to stay and grow their technical operations in Oakland County,” said L. Brooks Patterson, Oakland County executive.“Automation Alley is an excellent location for access to the highest caliber workforce, educational support system, and key customers, which will ensure Brose’s success in the future.”

Brose North America manufactures window regulators, door systems and seat adjusters to automotive original equipment manufacturers (OEMs).The company was established in Auburn Hills in 1993 and is Brose International’s North American headquarters.

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.

Brose North America
Economic Analysis
Summary Estimates
(All estimates in 2002 dollars)

TOTAL JOBS CREATED/RETAINED562
Direct260
Indirect302
NET POSITIVE STATE REVENUE IMPACT$20,054,000
Revenue Foregone$6,576,000
Revenue Gain$26,630,000
Average Wage$1,058/week
Personal Income Generated Over
Life of the Tax Credit Agreement
$332,878,000

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