by Scott McClallen
Toyota North America is expanding its facility in York Township near Ann Arbor, a project expected to generate a total capital investment of up to $47.7 million.
Toyota North America plans to add a battery testing facility for battery cell, module, and pack testing capability at its research and development headquarters campus in Saline/York Township.
“We thank Toyota for their longstanding commitment to Michigan and look forward to continuing to work together as they develop their future global strategy right here in Michigan,” Gov. Gretchen Whitmer said in a statement. “As we continue investing in our people, developing attractive places and winning impactful projects, we’ll send a message to businesses of all sizes around the globe that they can make their future here in Michigan.”
The capital investment is estimated at $28.8 million in new construction and $18.9 million in machinery and equipment. The company estimates about 30 existing full-time employees, including engineers and technicians, will be retrained to support the transition from internal combustion engines to electric vehicles.
Taxpayers will foot a $500,000 grant from the Michigan Business Development Program and the Michigan Economic Development Corp. has approved a 12-year State Education Tax Abatement valued at $1.09 million.
John Mozena, president of the Center for Economic Accountability, a nonprofit organization for transparent economic development policy, said Michigan taxpayers have subsidized the auto industry for 30 years, which resulted in 185,000 fewer manufacturing jobs than at the beginning of the subsidies.
Mozena said Michigan should take a hint from Taylor Swift’s Detroit concert this weekend “as it’s one more sign that Michigan needs to learn from the queen of writing breakup songs and finally tell the automakers that it’s time for us to start seeing other industries,” Mozena wrote in an email.
Mozena said Michigan should try to grow other economic sectors instead of “trying to tie the state’s economic well-being to an auto industry that’s going through a massive transformation and faces a deeply uncertain future.”
“The Whitmer administration’s economic development strategy appears to just be throwing millions or billions of taxpayer dollars at anything that has the words ‘battery’ or ‘electric vehicle’ or ‘mobility’ attached,” Mozena wrote. “I shudder to think of what will happen if some other technology comes along to make these facilities obsolete after Michigan has made such mammoth, multi-decade bets on them.”
York Township and Ann Arbor SPARK welcomed the project.
“Toyota is a leader in new technologies and finding unique pathways to connect with STEM talent. This new research and development investment is an important part of our region’s expertise in growing new mobility technologies,” Ann Arbor SPARK President and CEO Paul Krutko said in a statement.
Toyota announced its “Driving Possibilities” initiative Thursday, a 14-state community engagement initiative focused on preparing youth for future careers through innovative learning opportunities.
Michigan Economic Development Corp. President and CEO Quentin Messer Jr. welcomed the project.
“The company’s new Driving Possibilities initiative supports our efforts to promote careers and recruit talent to fill jobs in Michigan’s surging electric vehicle and transportation mobility sector, and underscores our state’s talented workforce,” Messer said in a statement.
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Scott McClallen is a staff writer covering Michigan and Minnesota for The Center Square. A graduate of Hillsdale College, his work has appeared on Forbes.com and FEE.org. Previously, he worked as a financial analyst at Pepsi.
