Toyota announced Thursday it is expanding its powertrain operations in Ann Arbor as part of a $126 million investment at its Technical Center.
DETROIT, MI – Toyota announced Thursday it is expanding its powertrain operations in Ann Arbor as part of a $126 million investment at its Technical Center.
At the same time, the company is consolidating its vehicle development operations at a new facility in its York Township campus.
The move calls for relocating about 85 jobs from a site in California to Michigan by the end of 2016, as both vehicle and powertrain functions become centralized in the Ann Arbor area.
"The Technical Center continues to be a vital part of our growing North American operations that enables Toyota to package greater value for our customers," Ed Mantey, senior vice president at the Toyota Technical Center, said in a statement. "Centralizing our vehicle development and powertrain functions here in Michigan is beneficial for our decision-making process and allows us to better respond to changes in the marketplace while improving the speed at which we can offer technology advances to customers."
Toyota has been in expansion mode in Southeast Michigan and the U.S. in general as of late. In 2013 the company announced a $28 million investment in its Ann Arbor operations, and earlier this year the Japanese automaker said it was moving 250 direct procurement and supplier engineering jobs from Kentucky to its Southeast Michigan operations.
"Toyota's expansion in the Ann Arbor region is a clear indicator that we offer the perfect infrastructure, talented workforce and support for a growing business," Paul Krutko, president and CEO of Ann Arbor SPARK, said in a release. "Toyota could locate its North American powertrain operations anywhere but chose Ann Arbor; the company's investment and the jobs it will create are a continuing win for our economy."
In April, the company announced it would establish new North American headquarters in Plano, Texas, while also expanding its technical, engineering and R&D capabilities in Ann Arbor. At the same time, the company plans to open an engineering facility at its manufacturing plant in Georgetown, Ky. The new facilities are scheduled to be complete in 2017.
David Muller is the automotive and business reporter for MLive Media Group in Detroit. Email him at dmuller@mlive.com or follow him on Twitter