Magna to Invest $50 Million in Four Michigan Projects

Auto supplier Magna International Inc. plans to invest nearly $50 million in four projects in Michigan, which will create approximately 508 jobs within five years, according to Automotive News. The Canadian company, the largest automotive supplier based in North America, is seeking state tax credits today from the Michigan Economic Growth Authority in Lansing, Michigan. The saved money will be used for projects to expand the company’s electric vehicle engineering and development, seating systems and powertrain divisions.

The largest of the four projects is a plant located 20 miles north of Detroit, in Auburn Hills, where Magna plans to invest $28 million and create up to 128 jobs for an energy storage and delivery testing operation. The building is part of the Magna E-Car of America Inc., a recently formed division.

E-Car Systems is a new global operating unit designed to integrate Magna’s many vehicle electrification product capabilities. These include lithium-ion battery pack assembly and design, electric drive modules, power inverters, battery management systems and other components for hybrid and electric cars.

The plans follow Magna’s recent $4.9 million purchase of 82,000 sq.ft. industrial building in Auburn Hills. At the same time, Magna Powertrain of America Inc. plans to expand its presence in Troy, Michigan, with plans for a $13.9 million driveline engineering center, an investment which will create up to 108 jobs. Besides these two big investments, Magna also revealed plans for two other smaller projects in the state.

Magna employs currently 4,750 people in the state of Michigan. The Toronto-based supplier generated $17.7 billion in revenue in 2009. Magna tried to buy Opel from GM in 2009 but didn't reach an agreement with the American automaker.