©2016 Michigan Economic Development Corporation

Toyota to Invest $150 Million and Create 677 Jobs in Michigan

Tuesday, April 12, 2005

Michael Shore, MEDC
(517) 335-4590

Governor Granholm's Auto Strategy Results in Major Gains

Governor Jennifer M. Granholm joined state, local, and company leaders in Ann Arbor today to announce that Toyota Motor Corporation plans to invest $150 million in a new, state-of-the-art research and development facility in York Township. The much-anticipated project is expected to create more than 670 Michigan jobs, including 400 directly by the company, and anchor future investment and jobs in the state.

"Toyota's investment here underscores Michigan's importance as a vital center of the global auto industry," Granholm said. "This decision is a testament to this state's comprehensive and aggressive strategy for attracting and retaining automotive investment and jobs."



The expansion further cements Michigan's standing as a global automotive research and development leader. More money is invested in automotive-related R&D in Michigan every year than in all other 49 states combined, according to the National Science Foundation and the Center for Automotive Research.

"Toyota, its many affiliates and suppliers have made significant investments here for 25 years, but this decision is the most important of them all. We look forward to a successful partnership far into the future," Granholm added.

Toyota Technical Center U.S.A., Inc. was established in 1977 and has its headquarters in Ann Arbor. Toyota currently has 505 Michigan employees. Just last year Toyota completed work on the new Calty Design Research studio next to the Technical Center.

"We think the York Township property is large enough to give us the assurance of being able to plan for TTC's short term as well as long term growth," said Dr. Akihiko Saito, Executive Vice President, Toyota Motor Corporation. "The North American growth in sales opened the door for Toyota to establish our manufacturing operations which in turn supported the localization of our R&D presence. The York Township property will provide adequate space to conduct our engineering and research for Toyota's core North American vehicle development programs."

A University of Michigan economic analysis estimates that 277 indirect Michigan jobs will be created as a result of increased economic activity associated with the expansion, in addition to the 400 jobs retained directly by the company. The project is expected to generate more than $1.2 billion in personal income for Michigan workers over the life of the tax credit.

"This is a huge project," MEDC President and CEO Don Jakeway said. "Michigan's second-to-none workforce and business-friendly climate were decisive factors in securing this substantial investment."



Last August, Granholm unveiled the Michigan Automotive Industry Economic Development/Investment Strategy, a seven-point program specifically designed to increase both automotive production and automotive R&D jobs in Michigan. It includes:

  • Continuing to improve Michigan's overall business climate, and create incentives focused on automotive manufacturing and R & D activities;
  • Creating a continuous, career-long skill enhancement system for automotive workers, and demands of the emerging high-tech automotive market place;
  • Developing a targeted approach to capture an increased share of international automotive investment;
  • Making Michigan the international incubator for new automotive business models, new consortiums, and new collaborative partnerships;
  • Working collaboratively to drive auto and energy related federal R & D priorities, and create mechanisms to more rapidly connect innovative intellectual property in our universities and companies with the auto market place;
  • Developing an industry-wide database for automotive research to help Michigan firms remain on the leading edge; and,
  • Taking a regional leadership role in the economic development of the auto industry.

In her 2005 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005 the Governor and the MEDC have announced the creation or retention of more than 32,000 jobs as a result of targeted assistance provided by the MEDC.

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.

Toyota Motor Corporation
Economic Analysis
Summary Estimates
(All estimates in 2005 dollars)

TOTAL JOBS CREATED677
Direct400
Indirect277
NET POSITIVE STATE REVENUE IMPACT$60,042,000
Revenue Foregone$38,906,000
Revenue Gain$98,948,000
Average Wage$1,588/week
Life of the Tax Credit Agreement$1,286,718,000