LANSING, Mich. -- BorgWarner Inc. plans to spend $27 million to expand its Auburn Hills operations near Detroit, a project expected to add 76 jobs, the state of Michigan said.
The Auburn Hills-based powertrain supplier is expected to create jobs in r&d, particularly as they relate to advanced electrification drive systems and technology to reduce vehicle emissions, according to the state's economic development agency. The new r&d work is expected to help improve gas mileage and address federal fuel economy standards.
The Michigan Strategic Fund unit awarded a $750,000 performance-based grant to BorgWarner for the project.
Michigan beat competing sites in Ireland, Spain and China for the project, the Michigan Economic Development Corp. said Thursday. The international plan, though decentralized, would have offered more financial incentives, though the MEDC said Michigan's advantage is economies of scale.
"BorgWarner is a global player in automotive r&d and could have chosen to expand anywhere in the world," MEDC CEO Steve Arwood said in a statement. "The company's decision to invest in Michigan reflects the great advantage of locating in the heart of automotive research and development."
BorgWarner received a $3.2 million grant from the MEDC in March 2014; the MEDC said the company has met all job-creation requirements. The company was awarded a 10-year, $2.6 million tax credit on up to 90 new hires under the now-defunct Michigan Business Tax, though the MEDC said BorgWarner has not collected on it since 2007 and it was forgone in 2014.
Auburn Hills also offered an eight-year property tax incentive worth an estimated $52,000, the MEDC said. The supplier employs more than 1,000 people in Michigan.
BorgWarner ranks No. 28 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $8 billion in 2015.