Toyota to expand powertrain operations at Ann Arbor facility

Toyota has announced that it is planning another expansion of its Southeast Michigan R&D campuses. This marks the third time in just over a year that Toyota has announced plans to increase employment and investment in Michigan.

The announcement features a total investment of $126 million (Rs 800 crore) for the expansion of Toyota’s powertrain operations at its Ann Arbor campus and the consolidation of vehicle development operations at a new facility on its York Township campus.

Both vehicle development and powertrain functions will become centralised in Michigan, increasing their scope, responsibility and decision-making ability while providing improved communication and access to the company’s direct procurement division. Approximately 85 jobs will relocate to Michigan from California by the end of 2016 as a part of the move.
 
In late 2013, Toyota announced a $28 million expansion of its Ann Arbor operations and earlier this year announced the addition of 250 direct procurement and supplier engineering development positions currently based in Erlanger, Ky.
 
“The Technical Center continues to be a vital part of our growing North American operations that enables Toyota to package greater value for our customers,” said Ed Mantey, senior vice president at the Toyota Technical Center. “Centralising our vehicle development and powertrain functions here in Michigan is beneficial for our decision-making process and allows us to better respond to changes in the marketplace while improving the speed at which we can offer technology advances to customers.”
 
“Toyota's expansion in the Ann Arbor region is a clear indicator that we offer the perfect infrastructure, talented workforce and support for a growing business,” said Paul Krutko President and CEO, Ann Arbor SPARK. “Toyota could locate its North American powertrain operations anywhere but chose Ann Arbor; the company's investment and the jobs it will create are a continuing win for our economy.”
 
In April 2014, Toyota announced that it would establish new headquarters in North Dallas (Plano), Texas for its North American operations as part of a series of moves designed to better serve customers and position the company for sustainable, long-term growth. This strategy includes establishing a new North American headquarters in Plano, Texas; expanding the Toyota Technical Center facilities in Southeast Michigan to accommodate increased investment in its engineering and product development capabilities; and opening a production engineering facility at Toyota’s largest U.S. manufacturing plant in Georgetown, Ky.

The new facilities are expected to be completed by 2017.