Lear to build EV parts plant to supply GM

The planned investment will be spread across three sites. The Oakland County project is the largest, according to the company, an $80 million factory at 5600 Bow Pointe Drive and formerly home to auto supplier Marelli North America Inc., which the company said closed last year. Closed.

Michigan officials said they needed more incentives to secure business than competing sites in Texas and Mexico, but Lear announced a month ago that it would put its factory in Michigan. No specific location was provided at that time.

The 120,000-square-foot plant will supply battery disconnect units to General Motors. Half of the facility will be dedicated to production, with the remainder used for warehouse, lab, test, and office space.

Alongside the new plant, Lear said it plans to upgrade its plant at 6450 Dobry Drive in Sterling Heights, Michigan. The plant, which Lear acquired last year and operates as M&N Plastics, will increase the output needed for battery assemblies supplied to GM.

Additionally, Lear is considering expanding its factory at 710 Carver Street in Traverse City, Michigan, to manufacture EV battery pack components.

According to the MEDC memo, “the company’s decision to build a new facility in Michigan rather than expand operations elsewhere outside of Michigan includes ensuring that new jobs are located in Michigan. We need incentive support to do so.”

Lear, which derives most of its $19 billion in annual sales from supplying seats, aims to grow its E-systems segment as the auto industry adapts to EVs. We are also working to localize parts of our manufacturing footprint in response to industry demand and federal incentives for onshoring such as the Inflation Reduction Act.

New jobs in Michigan will pay an average of $20.30 in wages and benefits, according to MEDC.

The state also approved a 15-year, 100% SESA exemption for the Oakland County plant in Independence Township, saying the project is located in a “qualified distressed area” and involves two investments exceeding $100 million. Abandoned SESA Guidelines.

The state waived the requirement “due to the competitive nature of the project and the desire to obtain as much investment as possible.”

Independence Township has agreed to support the project with “staff, financial or economic support,” according to the memo.

To receive the new incentives, per the terms of its contract with MEDC, Lear must create at least 400 eligible new jobs above the base employment level of 3,265 by October 31, 2026. The incentive will be $9,000 for each new job.

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