©2016 Michigan Economic Development Corporation

Three Rivers Wins American Axle Manufacturing Expansion

Wednesday, May 24, 2000

John Truscott
(517) 335-6397

508 New Jobs for StateAmerican Axle & Manufacturing (AAM) has selected their Three Rivers facility for a major new operation addition, Governor John Engler announced today.The project will create 508 new jobs, 233 directly by the company, for Michigan workers.“American Axle & Manufacturing has long been a major employer of Michigan workers,” Engler said.“This new project proves their continued dedication to this state.”The project is required for AAM to meet the increased needs of its customers for rear axle assemblies, a product not currently manufactured at the Three Rivers facility.The other AAM facility under consideration for the project included an existing axle facility in Guanajuato, Mexico.The company plans to invest $73.2 million in the new operation – including plant improvements, machinery and equipment.Of the new jobs, 275 spinn-off jobs will be created from increased spending by people who receive income from the jobs at AAM, according to an economic analysis done by the University of Michigan.The Governor also announced the approval of a tax credit for American Axle & Manufacturing, Inc., worth an estimated $12.9 million over 15 years. The tax credit was approved yesterday by the Michigan Economic Growth Authority (MEGA).This project will provide over $28 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of over $15.4 million after the MEGA credit.The project is expected to generate over $354 million in personal income during that time.AAM manufactures, engineers, designs and validates driveline systems, chassis systems and forged products for trucks, buses, sport utility vehicles and passenger cars.Its Michigan workforce includes nearly 6,000 employee associates.“American Axle & Manufacturing is pleased to be able to bring additional, high-quality jobs to Michigan while extending the capabilities and competitiveness of our excellent Three Rivers workforce,” said Allan R. Monich, AAM vice president, Human Resources.“We are grateful for the support of city, county and state leaders, without whom this project would not have been possible in Three Rivers.”MEGA, 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. “St. Joseph County and the City of Three Rivers are very appreciative to have this expansion take place in our community,” said Jon Bingol, executive director of the St. Joseph County Economic Development Corporation.“American Axle is the largest (non-government) employer in the County and is an exceptional corporate citizen.By gaining this new business, the Three Rivers plant has proven its ability to compete in the global marketplace.”

American Axle & ManufacturingMEGA AnalysisSummary Estimated(All estimates in 2000 dollars)

TOTAL JOBS CREATED 
508
Direct
233
Indirect
275
NET POSITIVE STATE REVENUE IMPACT
$ 15,448,000
Revenue Forgone
$ 12,937,000
Revenue Gain
$ 28,385,000
Average Wage
$ 586/week
Personal Income Generated Over Life of MEGA Agreement 
$ 354,810,000