©2018 Michigan Economic Development Corporation

Siemens Automotive Seeks to Build a New Engineering Facility in Auburn Hills

Wednesday, April 25, 2001

Susan Shafer
(517) 335-6397

1,231 New Jobs for Michigan Workers

1,231 New Jobs for Michigan Workers

Governor John Engler announced today that Siemens Automotive Corporation is seeking to construct a new vehicle and application engineering facility in Auburn Hills thanks to assistance from the Michigan Economic Development Corporation (MEDC).

Siemens Automotive prefers to locate the new 250,000 square foot center in Michigan over a site in South Carolina.Once the Siemens executive board approves the final project, the new center will include a state of the art research and development testing facility and offices for professional and engineering staff members.The company plans to invest about $67 million in the new facility.

“Siemens is a powerful force in Michigan’s automotive industry,” Engler said.“The company’s consideration to grow in Auburn Hills bodes well for the economic outlook of Michigan’s automotive sector.”

It is estimated that the expansion will create 1,231 new jobs, 800 directly by the company, for Michigan workers., according to an economic analysis completed by the University of Michigan.

A key component of the assistance from the MEDC is an incentive package that includes a Single Business Tax credit, worth an estimated $16.3 million over the next 13 years.The package also includes a MEDC training grant of up to $1 million to train new employees at Siemens Automotive.The MEDC also offered an abatement of the six-mill State Education Tax valued at $1.4 million over the next eight years.

“The expansions of our resident corporate citizens are key to a healthy local economy.These confirm that Oakland County has what it takes for research, development and technical firms,” said Oakland County Executive L. Brooks Patterson.“We congratulate Siemens on their decision to continue their growth in Oakland County, the heart of Automation Alley.”

The city of Auburn Hills will provide a 50 percent abatement of the company’s real and personal property taxes valued at $4.8 million over the next eight years.

“We are pleased Siemens has shown confidence in Auburn Hills by seeking to expand here,” said William Ross, Auburn Hills city manager.“The company has been an outstanding corporate customer, participating in the life of the community, as well as doing business here.We are looking forward to working with Siemens as they move forward with this expansion.”

This project would provide more than $92 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of more than $76.5 million, after the Single Business Tax credit.The project is expected to generatemore than $1.1 billion in personal income during that time.

“The role of vehicle electronics continues to increase as consumers demand more efficient and environmentally friendly engines; safer for the occupants; and personalized for their use,” said John Sanderson, president and CEO of Siemens Automotive.“These consumer demands are achieved through high technology companies like Siemens Automotive and has been responsible for fueling our aggressive growth in the market.”

Siemens Automotive is a tier one automotive electrical component and systems supplier.Siemens designs, engineers and builds automotive electrical and electronic components and systems for the entire automobile.

Siemens Automotive Corporation
Economic Analysis
Summary Estimated
(All estimates in 2001 dollars)








$ 76,502,000

Revenue Foregone

$ 16,305,000

Revenue Gain

$ 92,807,000

Average Wage

$ 1,265/week

Personal Income Generated Over Life of the Tax Credit

$ 1,160,088,000