©2016 Michigan Economic Development Corporation

MEDC Helps Attract BorgWarner's New Facility to Marshall

Tuesday, August 22, 2000

John Truscott
(517) 335-6397

180 New Jobs for StateGovernor John Engler announced today that the Michigan Economic Development Corporation’s (MEDC) incentives package has helped bring the BorgWarner Cooling Systems of Michigan, Inc.’s research and development facility to Marshall.The MEDC won the project by making a competitive business case to expand in Michigan with a Single Business Tax credit, an abatement of the six-mill state education tax and job training assistance. BorgWarner Cooling Systems of Michigan, Inc. selected Marshall over Indianapolis, Ind., for their new high-technology research and development facility.The facility will create 180 new jobs, 59 directly by the company, for Michigan workers.“I am pleased to announce BorgWarner’s further commitment to Michigan,” Engler said.“This global leader’s decision to bring these highly-skilled technical jobs to Michigan proves the draw of Marshall’s workforce combined with the new high-tech MEGA tax credit program.”The new facility will house all of BorgWarner Cooling Systems’ U.S.-based research, product and applications engineers and technicians.The facility will develop highly-engineered engine cooling system solutions for improved engine temperature management.The project includes a company investment of $7.7 million, with land, building, machinery and equipment costs. Of the new jobs, 121 spin-off jobs will be created from increased spending by people who receive income from the jobs at the BorgWarner Cooling Systems of Michigan, Inc., according to an economic analysis done by the University of Michigan.A key feature of the MEDC incentives package is a high-tech Michigan Economic Growth Authority (MEGA) tax credit, approved yesterday by the MEGA board, worth an estimated $1.9 million over 10 years.MEGA, which is administered by the MEDC, is used to promote high quality economic growth, job creation and retention in Michigan.In addition, the incentives package also featured an abatement of the six-mill State Education Tax for up to 12 years and job training assistance valued at $59,000 to attract BorgWarner Cooling Systems’ new research and development facility. This project will provide over $7.5 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of over $5.6 million after the MEGA credit.The project is expected to generate over $94 million in personal income during that time.“The city of Marshall has enjoyed a long, successful partnership with BorgWarner,” said Marshall Mayor John Miller.“BorgWarner’s employees are highly skilled professionals — the type of employees who make a significant impact on a community and local economy.We are delighted to retain — and strengthen — this important relationship.”BorgWarner Cooling Systems of Michigan, Inc. designs and supplies cooling system fan clutches and fans primarily for the sport-utility, light truck and commercial vehicle markets.BorgWarner Cooling Systems, Inc. currently has 244 employees in Michigan. “The Marshall facility will be part of BorgWarner’s global technology network that gives us a competitive edge as a product leader in engine and transmission systems,” said John J. McGill, president and general manager of BorgWarner Cooling Systems. “We have been delighted by the assistance of both state and local economic development officials in the selection process.This decision has been a difficult one.We have exceptional employees in both Michigan and Indiana, and we knew that some of those workers would have to relocate.The economic package presented by Governor Engler and Doug Rothwell certainly tipped the scale in Michigan’s favor.”The Michigan Economic Development Corporation works in partnership with local communities and Michigan businesses to retain and expand job opportunities and improve Michigan’s overall business climate.

BorgWarner Cooling Systems of Michigan, Inc.
MEGA Analysis Summary Estimated
(All estimates in 2000 dollars)

Revenue Forgone$1,909,000
Revenue Gain$7,562,000
Average Wage$1,348/week

Personal Income Generated Over Life of MEGA Agreement