©2016 Michigan Economic Development Corporation

Michigan Economic Development Corporation Announces the Expansion of Nissan Technical Center in Farmington Hills

Wednesday, June 12, 2002

Jennifer Kopp

Up to 866 New Jobs for Michigan Workers Anticipated

The Michigan Economic Development Corporation (MEDC) announced today that Nissan Technical Center North America, Inc. (NTCNA) will be expanding its operations in Farmington Hills.It is estimated that the expansion will create up to 386 Nissan jobs and up to 480 additional jobs as a result of increased economic activity related to the expansion.

The company plans to invest $38.4 million on current site improvements, buildings and equipment to expand the capabilities of its Farmington Hills technical center.

“The Nissan Technical Center is a prime example of how creating vehicles has become a high-tech operation,” said Doug Rothwell, president and CEO of the Michigan Economic Development Corporation.“Michigan is providing the advanced resources and trained workers needed to continue our world dominance in the automotive industry, and to secure expansions such as this.”

The NTCNA’s expanded facility will focus on high-value research, engineering, design services and enhanced computer simulation capabilities.

Assistance by the MEDC included a Single Business Tax credit valued at up to $15.7 million over the next 17 years.The assistance helped NTCNA choose Michigan over Nissan’s worldwide technical headquarters in Atsugi, Japan.

“Nissan is in the midst of an unprecedented product-based revival worldwide,” said Mitsuhiko Yamashita, president of NTCNA.“Our Technical Center in Farmington Hills is focused on developing vehicles for the North American market – the biggest in the world – and we’re happy that this expansion has been made possible through the hard work of many people in state and local government as well as those inside Nissan.”

According to an economic analysis conducted by the University of Michigan, it is estimated that the NTCNA’s expansion will generate a total of 866 jobs in the state by the year 2019, including up to 386 directly by the company.

The expansion will provide a total of more than $68 million in revenue to the state over the life of Single Business Tax credits awarded by the MEDC, resulting in a net gain for the state of more than $52 million.The project is expected to generate more than $851 million in personal income during that time.

“We are extremely pleased that Nissan Technical Center North America, a 12 year citizen of Farmington Hills and our fifth largest tax payer, is considering our city for such an important expansion,” said Steve Brock, city manager of Farmington Hills.“The leading-edge technology to be employed in this facility will be a great enhancement to the mix of economic development in our community and it is to our benefit that it be located here rather than in Japan.”

Nissan Technical Center North America, Inc. is the North American automotive engineering, development, research and testing arm of Nissan Motor Company.Nissan, along with its partner Renault, is the fifth largest automaker in the world.

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.

Nissan Technical Center North America, Inc.
Economic Analysis
Summary Estimated
(All estimates in 2002 dollars)

Revenue Foregone$ 15,716,000
Revenue Gain$ 68,136,000
Average Wage$1,145/wk
Personal Income Generated Over
Life of the Tax Credit Agreement
$ 851,703,000