Tuesday, January 25, 2000
159 New Jobs for State
New Venture Gear, Inc. has selected Auburn Hills for its new world headquarters, Governor John Engler announced today. The project will create 159 new jobs, 92 directly by the company, for Michigan workers."New Venture Gear’s strong affiliation with the auto industry makes Michigan an ideal choice for their new offices," Governor Engler said. "Their decision to move some of the company’s biggest decision makers and direction drivers to Auburn Hills speaks volumes about Michigan’s economy and workforce."Of the new jobs, 67 spin-off jobs will be created from increased spending by people who receive income from the jobs at New Venture Gear, Inc., according to an economic analysis done by the University of Michigan.The Governor also announced the approval of a tax credit for New Venture Gear, Inc., worth an estimated $2.9 million over 10 years. The tax credit was approved by the Michigan Economic Growth Authority (MEGA).This project will provide more than $10.1 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of over $7.1 million after the MEGA credit. The project is expected to generate over $126.4 million in personal income.New Venture Gear, Inc. was established in 1990 as a joint venture between Chrysler Corporation (now DaimlerChrysler) and General Motors. The company manufactures driveline systems and components including manual transmissions, manual transaxles and transfer cases. The project includes the construction of a new facility to house its corporate offices and research and development functions. "As the world’s preferred driveline partner, New Venture Gear is excited about our move to Auburn Hills," said Fred L. Hubacker, president and CEO of New Venture Gear. "The Auburn Hills site is a perfect match for NVG’s customers, suppliers and workforce." The Michigan Economic Growth Authority program, which is administered by the Michigan Economic Development Corporation, is used to promote high quality economic growth and job creation in Michigan that would not occur without this program.
New Venture Gear, Inc.
(All estimates in 2000 dollars)
- NET POSITIVE STATE REVENUE IMPACT $ 7,162,000
- Revenue Forgone $ 2,952,000
- Revenue Gain $ 10,114,000
- Average Wage $ 1,500/week
- Personal Income Generated Over Life of MEGA Agreement $ 126,423,000