Valeo North America Inc. plans to build a low-speed test track and new supporting building near Detroit in Auburn Hills, Mich.
The subsidiary of Paris-based automotive supplier Valeo SA, will invest about $5 million in the project and create 290 jobs. The cost also includes making improvements to its North American headquarters in Troy, Mich.
Valeo supplies a wide variety of hybrid driving systems, electrical components, thermal systems, sensors and transmissions. It employs 82,800 people globally.
Funding comes partly from a $1 million grant from the state of Michigan's business development program.
The financing gives Valeo incentives to add workers north of Detroit in Oakland County, a state memo said. Troy and Auburn Hills also offered marketing assistance, tax abatement and staff time.
Valeo ranks No. 11 on the Automotive News list of the top 100 global suppliers with estimated worldwide sales to automakers of $16.1 billion in 2015.