- July 14, 2018
- Posted by: biz techmgt
- Category: News
After announcing plans to enter the U.S. market in 2019 by unveiling an SUV and sedan at this year’s Detroit auto show, Guangzhou Automobile Group Co. Ltd. will open a research and development facility in Southeast Michigan.
The Chinese automaker, known as GAC, plans to invest up to $4.45 million and create 62 jobs in Farmington Hills, Gov. Rick Snyder’s office said in a news release. The Michigan Strategic Fund approved a $500,000 performance-based grant in June to support the project.
The auto conglomerate plans to lease the 51,000-square-foot building at 38555 Hills Tech Dr. The city is not offering a tax abatement on the property, but will assist GAC in finding qualified candidates, the Michigan Economic Development Corp. said in a memo.
In January, GAC said it was launching a recruitment program in Boston, Detroit and Silicon Valley to build a U.S. labor force, the China Daily reported.
GAC aims to launch its GS8, a mid-size crossover that is already available in the Chinese market. The automaker may locate its North American headquarters at the Farmington Hills facility at a later date, the MEDC memo said.
The state is benefiting from the relationship his office formed with GAC President Feng Xingya during a 2017 trade mission, Snyder said.
“This investment is the product of continued friendships and working relationships with foreign investors that have led to more jobs for Michiganders,” Snyder said in a statement. “We look forward to working with GAC as the company grows and adds jobs here.”
Founded in 2008, GAC sold 500,000 vehicles in 2017, mostly in China. It aims to reach 1 million vehicles by 2020. It also manufactures cars in China through joint ventures with Fiat Chrysler, Honda, Toyota, Nissan and Mitsubishi.