LANSING, Mich. – In a significant economic move, the Michigan Strategic Fund (MSF) has greenlit a substantial investment by Volkswagen Group of America, earmarking $13 million for the communities of Auburn Hills and Rochester Hills in Oakland County. This initiative is expected to meet current and future workforce demands while securing over 900 jobs.
Governor Gretchen Whitmer expressed, “Volkswagen’s decision to remain in Oakland County protects over 900 good-paying jobs for Michiganders and their families who will continue to call our state home. Michigan put the world on wheels, and since I took office, we’ve worked hard to grow our economy and secure more than 36,000 auto jobs. I’m grateful that Volkswagen continues to see the benefit of Michigan’s strong auto supply chains and talented workers, and I look forward to their continued success here in our state.”
Quentin L. Messer, Jr., CEO of the MEDC and MSF Board Chair, emphasized the importance of relationships and innovation: “Relationships, legacy, and the opportunity for innovation matter. I remain grateful to the MSF Board for their support of Michigan’s prosperity today and for generations to come, as evidenced by their approval of Volkswagen and Michigan Economic Development Corporation (MEDC) programs and services related to small businesses and furthering Michigan’s growing entrepreneurial ecosystem.”
Volkswagen Group of America Commits to Oakland County
OVERVIEW: Volkswagen has received a $4 million Michigan Business Development Program (MBDP) grant from the MSF to maintain over 900 jobs and invest at least $13 million in Oakland County. This investment will consolidate technical activities and establish a shared technical campus across Volkswagen Group of America’s functions and brands.
The company plans to sustain its presence in Auburn Hills by utilizing a newer facility that meets its space and technological needs. The agreement to retain jobs extends over seven years, with investments required in the first five years.
WHY IT MATTERS: Volkswagen’s strong foothold in Auburn Hills has been pivotal for decades. After assessing various options across its U.S. presence, Michigan’s access to skilled labor and the ability to retain that talent proved decisive. Kjell Gruner, President and CEO of Volkswagen Group of America, stated, “Michigan has long been an important home for Volkswagen Group of America. We’re thrilled to be able to continue our presence in the state, reinforcing our commitment to our people and advancing our technical capabilities in the state.”
This strategic decision ensures the retention of high-paying jobs in R&D, testing, and finance. Contributions from the Detroit Regional Partnership and Oakland County, providing marketing and talent services, further bolster Volkswagen’s commitment.
WHAT THEY’RE SAYING: Oakland County Executive David Coulter remarked, “Volkswagen’s decision to stay and expand its facilities in Auburn Hills is a major win for the region. Their commitment to the community strengthens our local economy and reinforces that Auburn Hills is a premier location for automotive innovation and growth.” Auburn Hills Mayor Eugene Hawkins added, “We are thrilled that Volkswagen has chosen to maintain such a strong presence in Auburn Hills. Their investment is a strong vote of confidence in our region’s workforce.”
MSF Board Supports Small Business and Innovation
OVERVIEW: The MSF Board has allocated $2.7 million to continue developing the Michigan Central Innovation District, integrating TechTown Detroit as the small business partner in Detroit. This funding will support Michigan Central Innovation District, LLC, and TechTown Detroit, with the aim of bolstering innovation and entrepreneurship.
In February 2022, the MSF Board had previously approved a $7.5 million grant to Michigan Central Innovation District LLC, laying the groundwork for a national model of innovation and collaboration. Amy Rencher, Senior VP of Small Business and Talent at the MEDC, commented on the significance of the ongoing support, underscoring the strategic partnership across Michigan Central, Wayne State University, and TechTown Detroit.
WHY IT MATTERS: This investment is set to create high-quality jobs and enhance a unique innovation pipeline from neighborhood to regional levels, ensuring small-to-medium businesses receive essential technical assistance. The previous MSF allocation has already positively impacted startups and innovation infrastructure, contributing significantly to Michigan Central’s growth.
TechTown Detroit also reported substantial achievements, serving 1,200 entrepreneurs, hosting numerous events, and generating $30 million in startup capital. However, gaps remain, and the partnership with Michigan Central and Wayne State aims to address these issues, accelerating commercialization and scaling capabilities.
WHAT THEY’RE SAYING: Ned Staebler, CEO of TechTown and Vice President of Economic Development at Wayne State University, stated, “This funding is a major win for our small businesses’ competitive edge. TechTown, the City of Detroit, and Michigan Central will work together to remove the barriers that keep neighborhood small businesses from growing.” Mark de la Vergne, Director of Network Growth for Michigan Central, added, “Michigan startups shouldn’t stall because they can’t access early capital, first customers, or the support needed to scale. MSF’s investment closes those gaps so more small businesses can commercialize faster and grow in Michigan.”
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