Toyota is getting as much as $8.6 million in incentives to offset the cost of a $32.5 million expansion of its tech center in Ann Arbor, Michigan.
As Toyota moves ahead with plans to reshape its North American operations, the automaker may get as much as $8.6 million in incentives to offset a $32.5 million expansion of its technical center in Ann Arbor, Michigan.
Toyota is moving 250 purchasing jobs from Kentucky to Michigan necessitating the larger facility. In addition to the expansion in Michigan, the maker is moving its headquarters from southern California to a suburb of Dallas, Texas.
The State of Michigan is providing a $4 million grant while York Township, near Ann Arbor, is also considering a 12-year property tax abatement valued at $4.6 million.
“We greatly appreciate the support and encouragement of the Michigan Economic Development Corporation, York Township and elected officials across the state as we continue to expand our presence in Michigan,” said Osamu Nagata, president and chief executive officer of Toyota Motor Engineering and Manufacturing North America, Inc.
Toyota currently has four research and development facilities in Southeast Michigan: Ann Arbor, York Township, Plymouth and Livonia.
“The Toyota Technical Center has been the driving force behind our engineering and R&D activities in North America for more than 35 years, so I am pleased and proud that we will continue to grow these operations,” he said.
“We look forward to strengthening our ties with Michigan even further and making continued investments that will help drive the success of both Toyota, our supplier partners and the state for many years to come.”
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The expansion of the TTC campus is a key element of Toyota’s ongoing consolidation of its North American operations, which includes the establishment of a new North American headquarters in Plano, Texas.
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“Growing our footprint in the design and engineering center of the U.S. automotive industry will enhance our ability to engage, support and partner with our key suppliers, the majority of which are located in southeast Michigan,” Nagata said.
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Nagata said bringing the procurement activities closer to the strongest automotive supply base in the world will boost Toyota’s operations.
“As we go from concept to mass production of our vehicles, having our direct procurement and engineering functions in close proximity will help us continue creating products that exceed our customers’ expectations, both now and in the future,” he said.