LANSING, MI – Michigan is writing another big check to keep auto jobs from walking out the door, this time backing Volkswagen Group of America’s decision to keep more than 900 jobs in Oakland County with a $13 million investment tied to a $4 million state grant approved by the Michigan Strategic Fund.
The deal keeps Volkswagen’s technical and engineering footprint rooted in Auburn Hills and Rochester Hills, where the company will consolidate quality, engineering, warranty operations, and technical services into a shared technical campus serving all Volkswagen brands. The company will also maintain a separate Auburn Hills facility to support modernized operations and space needs, effectively doubling down on Oakland County as its U.S. technical nerve center.
Volkswagen had been reviewing its national footprint as part of cost cutting and modernization efforts, a process that often ends with jobs leaving Michigan. Instead, the company chose to stay, citing access to experienced auto and engineering talent and the deep supply chain that still makes southeast Michigan the center of the automotive universe.
Governor Gretchen Whitmer framed the deal as a major win for working families, saying it protects over 900 good paying jobs and reinforces Michigan’s place as the world’s automotive capital. MEDC CEO Quentin Messer said the move shows that legacy auto and next generation mobility still belong in Michigan, not in some low wage, out of state alternative.
Volkswagen Group of America CEO Kjell Gruner said Michigan remains a critical home for the company and that the investment strengthens its technical and engineering capabilities while keeping its workforce intact.
From a numbers standpoint, the math is straightforward. The $13 million investment tied to retaining 900 jobs comes out to about $14,444 per job. That is the effective price tag to keep each position anchored in Michigan instead of being relocated elsewhere. For a state that depends heavily on high wage auto, engineering, and R&D jobs, that figure is a relatively small price compared to the tax base, payroll, and economic activity those jobs generate over seven years.
The agreement requires Volkswagen to keep those jobs for at least seven years and make the full investment within five, locking in a long term presence that includes research, testing, finance, and engineering work that pays well above the regional median wage.
Oakland County and the Detroit Regional Partnership are also backing the deal with talent and marketing support to make sure Volkswagen can recruit and retain the workforce it needs, reinforcing Auburn Hills as one of the Midwest’s core automotive technology hubs.
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- NMD Staff
Staff@NewMediaDetroit.com