Mercedes to Develop Hybrids in Michigan

Mercedes-Benz is aiming to use the Ann Arbor, Michigan unit to develop advanced propulsion research and hybrid systems despite the fact that some other sites for the project are also mentioned on the proposal list. According to Autonews, Daimler currently employs 14 people in Michigan but the new center would boost the total workforce to up to 223 workers. The 65,000 square-foot center would bring around $16.2 million in new revenues to the state, the Michigan Economic Development Corp. (MEDC) said.

In order to convince Daimler that Michigan would be the smartest choice to develop hybrid systems, MEDC is asking the Michigan Economic Growth Authority (MEGA) to provide 10-year, 100 percent employment tax credit to the German manufacturer. The members of the MEGA board meet today to consider a number of incentives for Mercedes, including 200 percent high-tech employment tax credit for the first three years, the aforementioned source added.

As mentioned, Mercedes is also considering a number of other locations for hybrid research, including Greenville, S.C. and California.

This isn't the first time when Michigan gets involved in the automotive industry, and particularly into the green car sector. The state approved in mid-February a $55 million incentive in refundable tax credits for Ford, asking the company to continue its efforts in the electrical vehicle development sector.

“Ford appreciates Michigan’s proactive positioning in support of these advanced technologies, which we believe are at the heart of a new generation of vehicles,” said Curt Magleby, director, Government Affairs. “Incentives to help concentrate research and engineering related to electric vehicles in Michigan will help position the state to become a leader in this emerging technology.”