Waymo firms up plans for autonomous car assembly plant in Detroit

April 23, 2019 10:00 AM

DETROIT -- Waymo holds an ample supply of its self-driving systems. It has pipelines in place that will provide vehicles for its ride-hailing fleets. Now it has a place to put the two together.

The Google affiliate said Tuesday it has reached an agreement with American Axle & Manufacturing Inc. to lease a factory in Detroit, where it will integrate its self-driving systems onto vehicles provided by Fiat Chrysler Automobiles and Jaguar.

Waymo will invest $13.6 million to adapt a plant within the supplier's Holbrook Avenue campus and says it could eventually grow to 200,000 square feet.

The move will create Waymo's first full-fledged assembly plant for retrofitting vehicles with self-driving systems and marks an expansion into the cradle of the traditional auto industry.

In January, when Waymo laid out its ambitions to find a manufacturing plant in southeast Michigan, Waymo said as many as 400 engineers from Canada's Magna International Inc., a Waymo partner, could eventually be hired to perform the system integration. Waymo did not say Tuesday how many employees would be hired initially.

"We've found the perfect facility in Detroit," Waymo CEO John Krafcik said Monday. "We will partner with American Axle & Manufacturing to repurpose the existing facility, bringing a work force back to an area where jobs in the automotive industry were recently lost."

American Axle & Manufacturing last made front axles in the factory, ending production in 2012. The plant most recently was used as a sequencing center for a local parts supplier, according to a company spokeswoman. American Axle recently moved back into a portion of the building set up for administrative functions. Terms of the lease were undisclosed.

Statements from Waymo CEO John Krafcik and other key players

In January, we announced that we would open the world's first factory 100 percent-dedicated to the mass production of L4 autonomous vehicles.

We wanted this facility to benefit from a location in southeast Michigan -- the heart of the American automotive industry -- and its strong talent base. We began looking for a facility that would allow us to quickly get up and running by mid-2019 while offering us the flexibility to continue to grow and expand our operations in Michigan over time and where there was a strong pool of talent across engineering, operations, and fleet coordination.

Today, we’re excited to announce that we’ve found the perfect facility in Detroit. We will partner with American Axle & Manufacturing to repurpose an existing facility, bringing a workforce back to an area where jobs in the automotive industry were recently lost.

We extend our sincerest thanks to Governor Gretchen Whitmer, Former Governor Rick Snyder, Detroit Mayor Mike Duggan, The Detroit Economic Growth Corporation (DEGC) and the Michigan Economic Development Corporation (MEDC) for their partnership and support.

“By choosing to establish its new facility in Detroit, Waymo is continuing the city’s momentum and further cementing Michigan as a leader in mobility and the epicenter of advanced automotive manufacturing,” said Governor Gretchen Whitmer. “More and more Silicon Valley companies are looking to grow in Michigan as they realize the competitive advantages Michigan has to offer: high-tech engineering resources, top-notch research and design, and a highly skilled workforce matched with a low cost of living and low cost of doing business. We are pleased to welcome Waymo to Detroit and look forward to working with the company as it moves forward and brings jobs to Michigan residents.”

Mayor Mike Duggan shared: “Today’s announcement by Waymo shows that the City of Detroit remains at the center of the future of the auto industry. Waymo could have located the world’s first 100% dedicated Level 4 autonomous vehicle factory anywhere. We deeply appreciate the confidence John Krafcik and the Waymo team are showing in the Motor City.”

Quicken Loans Founder Dan Gilbert -- a key player in downtown Detroit revivial -- said in a statement:

"It makes perfect sense that Waymo would choose Detroit, the birthplace of the automotive revolution, to merge new autonomous technology with renowned manufacturing expertise. This move is a huge win for the city, its residents and the region as a whole.

"More and more entrepreneurs and startups are choosing to relocate to the city, and Waymo’s newest expansion only helps to affirm Detroit’s position as the startup hub of the Midwest – making our city synonymous with high-tech innovation.

"We were glad we could play a part in helping Waymo to choose Detroit. There is no better place than the intersection of muscles and brains for an exciting car tech company of the future to put down roots. We welcome Waymo and its hundreds of new hires to our growing city, and look forward to seeing its fleet of self-driving vehicles hit our Michigan roads.

"Additionally, thanks to our wonderful neighbors at American Axle & Manufacturing and Bedrock for helping Waymo find the perfect home in Motor City. We’re thrilled to join Detroit’s vibrant community, helping to play a role in the future of the automotive industry in the city that started it all."

Level 4

The factory will be the second in Michigan solely dedicated to producing Level 4 autonomous vehicles -- those that never require human involvement in driving but may have weather-related and location constraints that limit their use to select areas.

Navya, a maker of self-driving shuttles, opened an assembly plant west of Detroit in Saline, Mich., last year.

The building will be Waymo's second in southeast Michigan. In October 2017, it opened a facility northwest of Detroit in Novi to house vehicles used for cold-weather testing. About 20 people are employed there.

‘Up and running'

Waymo, the commercial-minded descendant of Google's self-driving car project, says it expects to be "up and running" by mid-2019. It will start by installing its self-driving systems onto Chrysler Pacifica minivans. Later, it will add the self-driving systems to Jaguar I-Pace electric vehicles.

Both vehicles will be used in Waymo One, the commercial ride-hailing service the company launched in December 2018 in Phoenix. At least for now, vehicles in operation still have human safety drivers behind the wheel and the service is limited to preapproved riders.

Waymo has not yet announced plans to expand that service or the size of its fleet, but with plans for its assembly plant in place, the groundwork has been set.