©2016 Michigan Economic Development Corporation

Michigan Economic Development Corporation Assistance Leads to One of the Nation's Top Expansions

Monday, May 05, 2003

Jennifer Owens
(517) 335-4590

AutoAlliance Expansion in Flat Rock a “Top Deal” According to Magazine

The Michigan Economic Development Corporation (MEDC) announced today that Site Selection magazine has recognized the AutoAlliance International expansion in Flat Rock as one of the most powerful business expansions in the United States for 2002. In its May 2003 issue, the magazine praises the expansion as “one of the most significant business-retention stories in the history of Michigan.”

"The AutoAlliance experience must be just the first chapter in the story of how we strengthen our state's economy," said Governor Jennifer M. Granholm. "We must continue to work aggressively with our business community to expand our own home-grown jobs and economic development."

AutoAlliance International, a joint venture between Ford Motor Company and Mazda Motor Corporation, plans to invest approximately $644 million in new machinery and equipment to prepare its existing Flat Rock manufacturing facility for new vehicle production. The all-new 2005 Ford Mustang will be built at the facility, as well as other Ford and Mazda vehicle models.

The company announced its decision to expand immediately after being awarded an incentive package recommended by the MEDC in August 2002. The announcement was the climax of a process that involved the MEDC working closely with the city of Flat Rock and Wayne County to create a business case for the company to expand at the Flat Rock site rather than another Midwest location.

“The MEDC has a clear economic development strategy to encourage business growth and create new jobs in the state,” MEDC acting CEO Sabrina Keeley said. “The success of attracting the AutoAlliance expansion in a highly competitive race with other states is further evidence that our strategy and its execution are working effectively.”

The project will retain up to 1,961 jobs currently at the Flat Rock facility, and add between 1,200 and 1,400 new jobs in coming years if demand for the vehicles requires further expansion.

“The MEDC was aggressive in courting the AutoAlliance expansion, and also sensitive to our company’s particular needs,” AutoAlliance President Phil Spender said. “It was clear from the outset that they were driven to secure these jobs for Michigan workers.”

According to an economic analysis conducted by the University of Michigan, it is estimated that AutoAlliance’s expansion in Flat Rock will create an additional 6,323 jobs in the state indirectly. The company’s operations will result in total net state revenue increases of more than $758 million during the life of the tax credit.

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.

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