The state of Michigan and the City of Auburn Hills beat out South Carolina in a bid for the FEV Group and its 750 jobs.
The German powertrain and vehicle design engineering company will build a new North American headquarters in Auburn Hills. Currently already located in Auburn Hills, the company considered a move to South Carolina before a combination of a grant by Michigan and property tax abatement by Auburn Hills helped to convince FEV Group to build its new state-of-the-art facilities in the city in which it currently resides.
The company employs approximately 500 people at its current Auburn Hills facility. FEV Group will hire an additional 250 employees once the new headquarters is built. The promise of 250 new jobs led the state of Michigan to award the company a $1.2 million Michigan Business Development Program performance-based grant.
The new building itself will serve not only as a headquarters but also as a tech center and engineering services facility. More than $27 million will be invested in the development.
The FEV Group is just one of several businesses to recently receive incentives from the Michigan Strategic Fund, which was announced Tuesday, June 28. In total, the businesses receiving incentives are expected to create approximately 878 jobs and $85 million in private capital investments, says the state.
“The commitment by these companies to grow and create jobs in Michigan will strengthen our communities and fuel more and better jobs for our talented workforce,” Gov. Rick Snyder says in a statement. “Today’s investments in Michigan and its people show that our efforts are making our state a desirable location for businesses to locate, grow and thrive.”
FEV Group was founded in Germany in 1978. The company founded FEV North America in California in 1985 before moving that headquarters to Michigan in 1988.