September 2014

© University of MichiganTalent and R&D: Engineering a WorkforceHome to more than 89,000 engineers, Michigan ranks first in thenation for its concentration of engineering and architecture talent. Ithas the highest concentration of industrial and mechanical engineersin the U.S., and as of May 2013, Michigan employed more industrialengineers (24,430) and mechanical engineers (32,640) than anyother state in the country.24,43032,640Highly Skilled, Competitive WorkforceMichigan Ranks:• #1 in mechanical engineers• #1 in industrial engineers4,9707,3004,530• #2 in mechanical engineering technicians• #4 in electrical engineers1,060• #6 in electrical and electronics engineering technicians• #8 in materials engineersmichauto.org3

The University Research CorridorThe University Research Corridor (URC) – which includes Michigan State University, the University of Michigan and Wayne StateUniversity – is the premier collaborative automotive education program in the nation. URC universities have 23 research centers,laboratories and partnerships and graduate more than 3,600 students annually in technical careers for the automotive industry.Automotive R&D HubBrain Power for the Auto IndustryMichigan remains the preeminent place for auto-related research and development where key industry players from around the worldhave facilities to remain at the forefront of innovation.• Michigan is home to 375 automotive R&D centers, 120 of which are foreign-owned.• According to the Center for Automotive Research, $8.9 billion or 76 percent of $12 billion in R&D business in Michigan wasautomotive related – leading the nation in automotive related R&D.• Between 1964 and 2012, Michigan accounted for more than 27 percent of the automotive patents issued nationwide,averaging 1 automotive patent per day for 49 years. This outpaces every state in the nation by more than 300 percent.Global or North AmericanR&D Headquarters in MichiganAdditional Auto Manufacturerswith R&D Facilities in MichiganTalent and R&D5

© General MotorsManufacturing Expertise: Michigan’s Unrivaled ProductionIn addition to top tier engineering talent, Michigan employs a highly skilled manufacturing labor force at nationally competitivewages. As a result, Michigan has led the nation in manufacturing jobs created between 2010 and 2013, adding nearly 73,784jobs. Since 2010, Michigan has created 30,270 jobs specific to automotive manufacturing, which equals more than 20 jobscreated every day for 4 years.Automotive Manufacturing FootprintMichigan’s renowned manufacturing expertise and footprint power unrivaled automotive production levels in the nation and continent.• Michigan leads the nation in motor vehicle and motor vehicle parts manufacturer establishments with 1,741.Nearly 25 percent of these (419) are foreign-owned.• There are 1,415 tool and die establishments in Michigan, more than any other state.• Michigan leads the nation in original equipment manufacturer (OEM) assembly plants with 13.• There are 35 OEM components/materials plants in Michigan, more than any other state.Michigan is the capital of the global automotive industry, and General Motors has been proud to call it our homesince 1908. The state’s business and manufacturing environment and expertise are unequaled, which is why webase so much of our research and development, design, engineering, and manufacturing workforce here, and sodoes our broad supplier base. GM’s long history and strong relationship with Michigan has resulted in a successfulpublic and private partnership, one that will continue and flourish for years to come.Mark Reuss, Executive Vice President, Global Product Development, Purchasing andSupply Chain, General Motors6 Michigan Is Auto

Michigan Vehicle Production by the NumbersMichigan’s vehicle production of 2.47 million in 2013, exceeded the pre-recession levels of 2.33 million of 2007, exceeding thenext closest state’s production by over 1 million vehicles.2,471,6362,333,2712,000,0002,263,638# Produced1,852,6541,586,1811,909,1191,146,1341,000,00021.5 %U.S. Production21.2 %U.S. Production19.9 %U.S. Production20.3 %U.S. Production22 %U.S. Production22.3 %U.S. Production22.9 %U.S. Production15 %North AmericanProduction200714.3 %North AmericanProduction200813 %North AmericanProduction13 %North AmericanProduction14.2 %North AmericanProduction2009 2010 201114.6 %North AmericanProduction201215.3 %North AmericanProduction2013Source: Automotive NewsYearCompetitive Hourly WagesA highly skilled workforce at nationally competitive wages makes Michigan the best value option for accessing world-classmanufacturing talent to compete in the 21st century global economy.20.0822.2023.3426.1120.9422.6320 21 22 23 24 25 2627Source: Bureau of National AffairsManufacturing Expertise7

Investment and Infrastructure: Unmatched in the WorldWhether it’s Michigan’s renowned supplier network or the logistical infrastructure to move freight anywhere in the world, the assetsin the Motor State make it a magnet for automotive investment. According to the Center for Automotive Research, between 2010and July 2014, automakers and suppliers invested $16.3 billion in Michigan, nearly $2.8 billion of which came from 76 foreignautomotive firms from 20 different countries.In 2013, 28 Michigan counties receivedmore than $2.3 billion in automotiveinvestment, creating nearly 11,000 jobs.Automotive Trade: Imports and ExportsImports and exports of transportation equipment to and fromMichigan companies grew significantly between 2009 and 2013.Michigan companies exported more than $29 billion in transportation equipment to 169countries in 2013, an increase of nearly 105 percent from 2009. In 2013, automotive exports to Canada totalednearly $14.8 billion – 51 percent of Michigan’s transportation equipment export total.Michigan companies imported more than $76 billion in transportation equipment in 2013,an increase of more than 110 percent from 2009. In 2013, automotive imports from Canada totaled nearly$34 billion – 44 percent of Michigan’s transportation equipment import total.8 Michigan Is Auto

63 of the Top 100 Automotive Suppliers to North Americaare Headquartered in MichiganDecision Making Headquarters for the Global Auto IndustryAnn Arbor (1)NSK AmericasAuburn Hills (2)Alps Electric North America, Inc.Autoliv North AmericaBenteler Automotive Corp.BorgWarner Inc.Brose North America, Inc.Continental AGDow AutomotiveDura Automotive Systems, LLCFaureciaGKN DrivelineGrupo Antolin North America, Inc.Henniges AutomotiveMagneti Marelli Holding USATI Automotive Ltd.TK Holdings, Inc.Canton (3)Yazaki North America, Inc.Detroit (4)American Axle andManufacturingBridgewater InteriorsFarmington Hills (5)AEESAutoneum North America, Inc.JATCO USAMahle Industries, Inc.Mobis North AmericaRobert Bosch, LLCLivonia (6)Tower Automotive, Inc.TRW Automotive, Inc.Mount Pleasant (7)American Mitsuba Corp.Plymouth (10)Aisin World Corp. of AmericaHella Corporate Center USA, Inc.HoneywellJohnson Controls, Inc.JTEKT Automotive Group Cos.Metaldyne, LLCSanluis Rassini, S.A. DE C.V.TRAM, Inc.Rochester Hills (11)Webasto Roof Systems, Inc.Saginaw (12)Nexteer AutomotiveShelby Township (13)CIE Automotive USA, Inc.Southfield (14)Denso International America, Inc.Federal-Mogul Corp.Grede Holdings, LLCIAC Group North AmericaLear Corp.South Haven (15)TrelleborgVibracouticSterling Heights (16)Key Safety SystemsTroy (17)Delphi Automotive, LLPDuPont AutomotiveGestamp North AmericaInteva Products, LLCKautex Textron North AmericaPlastic Omnium Co.Schaeffler Group North AmericaToyoda Gosei North America Corp.Valeo, Inc.ManisteeTraverse CityAnn ArborMt. Pleasant1WASHTENAW7GaylordGraylingPontiacOAKLAND19SaginawAlpenaTawas City122111795 14 1981064318WAYNE13MACOMBDetroitMt. ClemensPort Austin16Bad AxeNorthville (8)ZF Group NAOVan Buren Township (18)Visteon Corp.Grand RapidsFlintPort HuronNovi (9)Cooper-Standard AutomotiveEberspaecher North America, Inc.Kongsberg AutomotiveMando America Corp.Maxion WheelsWarren (19)SRG Global, Inc.15Benton Harbor/St. Joseph6Battle CreekLansingMonroeDetroitSource: Automotive NewsInvestment and Infrastructure9

Michigan is recognized as the automotive capital of the world for many good reasons. Toyota is pleased to conduct itsNorth American engineering and research activities where the action is. The engineering and design synergy createdthrough the huge supplier base and engineering talent centered in Michigan is why Toyota continues to expand ourR&D operations here.Simon Nagata, President and CEO, Toyota Motor Engineering & Manufacturing N.A., Inc.Logistics & InfrastructureWhether it’s Michigan’s renowned manufacturing base and R&D, professional service firms with dedicated automotive practices,or its ideal global location, Michigan has an automotive infrastructure that is unmatched anywhere in the world.Michigan is only 500 miles, or a day’s drive, from half of the population of the United States and provides the infrastructureneeded to transport products and people there and across the world. Michigan has an extensive network of logistical assetsthat make moving automotive components a breeze.ROADRAILMichigan is among the top10 in the nation for roadinfrastructure with 1,244miles of interstate highwayand 8,480 miles of U.S. andstate highways.Michigan is one of only two2Great Lakes states with toll-free highways.Michigan is served by 28freight railroads (7th in thecountry) covering 3,634 milesof rail (12th in the country).In 2011, Michigan railroadsmoved more than 4.1 milliontons of motor vehicles andparts on 246,600 carloads,more than any other state.AIRWATERMichigan has 18 commercialairports, including the 18thbusiest airport in the world,Detroit Metropolitan WayneCounty Airport (DTW). DTWoffers 280 international flightsweekly and ranks in the top 25for cargo movement in NorthAmerica.Willow Run Airport handlesmore than 160 million poundsof cargo annually includinghigh-value automotive andelectronic components.Michigan has 40 commercialports, 38 of which are deepwater ports.The Port of Detroit is the thirdlargest international gatewayin the United States andconnects the Great Lakes andthe entire Midwest to the St.Lawrence Seaway.10 Investment and Infrastructure

Intelligent Mobility: Leading Connected Vehicle TechnologyMichigan is uniquely positioned to lead the world in the development and integration of automotive technology that will define 21stcentury intelligent mobility. In 2012, Michigan led the United States in connected vehicle projects (30). The United States is theglobal leader in these projects, with 44 percent of projects worldwide.The Detroit region is a leader of connectedvehicle programs with locations in 8 citiesin Southeast Michigan.• The state of Michigan is currently utilizing “real-world” deployment of comprehensive, multi-modal connected vehicle systems,testing vehicle-to-infrastructure and vehicle-to-vehicle communications on more than 2,800 vehicles (passenger, commercialand transit buses).• The Detroit region is home to the largest deployment of video imaging for traffic management in the world.• More than 200 miles of freeway in the Detroit region are instrumented for 456 closed-circuit television cameras, 203dynamic message signs, 488 microwave vehicle detector sites, 57 environmental sensor stations, 34 communicationhubs and 7 travel time signs.• General Motors is leading intelligent mobility efforts in Michigan with the first V2V-equipped car, the 2017 CadillacCTS. GM is also joining the Michigan Department of Transportation, the University of Michigan’s Mobility TransformationCenter and other automakers to create V2I-enabled corridors on 120 miles of metro Detroit roadways, the largestdeployment of V2I technology in the U.S.Michigan is an iconic automotive hub – from a strong technical workforce to innovative companies to effective OEM andsupplier relationships – it truly is the best place for industry growth. That’s why at IAV, we’re proud to have an expandingpresence in Michigan. This includes bringing our highly automated driving expertise here, to the Great Lakes State, toassist in building a robust, intelligent mobility infrastructure. Leveraging the extensive automotive resources and talentpool in the region will further illustrate the state’s key leadership position in developing state-of-the-art driving systemsand its role in advancing the industry as it pursues intelligent mobility success.Andy Ridgway, President of IAV Automotive Engineering, Inc.michauto.org11

Infrastructure and ResourcesUniversity of Michigan Transportation Institute (UMTRI) – Dedicated to achieving safe and sustainable transportation for aglobal society, UMTRI has a multimillion-dollar research program. Its key initiatives include the Center for the Management ofInformation for Safe and Sustainable Transportation and Michigan Mobility Transformation Center.The University of Michigan’s new Mobility Transformation Center (MTC) broke ground on a $6.5 million connectivitytest facility it is developing with the Michigan Department of Transportation on the university’s north campus. When the 32-acretrack opens, researchers will be able to test connected and autonomous vehicles in a simulated urban environment. The MTCaims to transfer results at the track to a 20,000-vehicle demonstration system in Ann Arbor and two other locations in SoutheastMichigan by 2021.Southeast Michigan Connected Vehicle Test Bed – Encompassing 75 linear miles, the most extensive test bed in the nationprovides companies the capability to test safety, mobility, environmental applications and components, led by the U.S. DOT’sVehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) research program.Former Willow Run Powertrain Plant – Proposed home for a technologically advanced connected vehicle research center, a projectthat could become a hub of research and development for the vehicles of tomorrow and a catalyst for jobs in innovative automotiveresearch.Oakland County Connected Car Task Force – Oakland County has a task force to determine how to deploy the first countywideconnected vehicle infrastructure system, which will collect information from connected vehicle stakeholders and industry leadersand experts in order to develop an implementation plan.NextEnergy – One of the nation’s leading accelerators of advanced energy technologies, business and industries. This includes:building energy management systems, demonstration of next generation solid state lighting, Vehicle–to-Grid (V2G) commerce,and connected vehicles in a dedicated short range communications (DSRC) framework.12 Intelligent Mobility

© Andrew Potter PhotographyInnovation, Collaboration & Growth:Michigan’s New Automotive StrategyIn 2013, Gov. Rick Snyder created the Michigan Automotive Office within the Michigan Economic Development Corporation (MEDC)to develop and lead a 30-year strategic plan. The office drives action to support the industry, retain automotive businesses andattract new ones, and complement the state’s overall economic growth strategy.Major Michigan Legislative Advances2012-2014January 1, 2012December 12, 2012Positive Tax Reform PassedMichigan’s new corporate income tax is the lowest in the Midwestand is among the lowest in the nation.Right-to-Work Law PassedMichigan became the 24th right-to-work state in the United States.December 20, 2012Personal Property Tax EliminatedMichigan eliminated its personal property tax on industrial propertyto be more manufacturing-friendly.December 27, 2013Driverless Car Legislation SignedGov. Snyder signed legislation allowing manufacturers to test driverlesscars on Michigan roads.July 31, 2014Regulations DecreasedThus far, 1,600 obsolete, unnecessary and burdensome rules havebeen eliminated in Michigan.michauto.org13

Developing the FutureThe Michigan Automotive Office and MEDC collaborate with industry, academia and government to advance automotivetechnologies, attract and develop high-skilled talent, and make the case for greater private capital investment.Michigan Advanced Technician Training Program (MAT2) – An industry-driven approach to workforce training, MAT2 offersemployer-paid tuition and on-the-job training with pay, and is open to graduating high school seniors or students currentlyenrolled in community colleges or four-year universities.American Lightweight Materials Manufacturing Innovation Institute – Led by University of Michigan, Ohio-based manufacturingtechnology nonprofit EWI and Ohio State University, it will establish an ecosystem to support production of lightweight materials.Domestic & International Business DevelopmentCapitalizing on new opportunities afforded by a much-improved business climate, the MEDC and auto office are engaging bothMichigan-based and global automotive businesses to execute their growth plans here.• In FY 2013, the state partnered on 34 automotive investment projects with more than 7,200 jobs committed and $953 millionin private investment ($180 million in public support).• Between January 2011 and May 2014, there have been 359 foreign direct investment projects in Michigan representinga total capital investment of $9 billion, and over 31,000 new jobs. Out of a total 359 foreign direct investment projects, theautomotive industry accounted for 18.1 percent of the projects, creating over 10,000 jobs and $1.7 billion in capital investment.Supporting Business GrowthBusinesses need capital to grow and diversify. To incentivize tight capital markets to lend, Michigan has developed creative methodsto provide the capital businesses need to grow and prosper.Michigan Business Development Program (MBDP)The MBDP provides grants, loans or economic assistance to qualified businesses that create investments and jobs in Michigan.Michigan Business Growth FundThe Michigan Business Growth Fund operates several programs that assist lenders and borrowers in financing expansion ordiversification projects within the state of Michigan.Capital Access Program (CAP)CAP uses small amounts of public resources to support private bank financing, providing small Michigan businesses access tocapital that might not otherwise be available.Private Activity Bonds (PABs)The MEDC, through the Michigan Strategic Fund, can issue tax-exempt and taxable PABs for credit-worthy companies consideringinvesting in eligible projects.American Axle & Manufacturing is experiencing significant year over year sales growth, much of which occursright here in Michigan. Seven of our thirty-four global facilities are located here, and we recently investedover $130 million to launch our new disconnecting AWD system in Three Rivers. The technical facilities,human talent, and assistance from governmental agencies and economic development organizations greatlyenhance our ability to achieve this type of success.David C. Dauch, Chairman, President & CEO, American Axle & Manufacturing14 Innovation, Collaboration & Growth

Whether it’s high-tech engineering, top-notch research, a highly skilledworkforce or close proximity to a premier global supply chain, Michigan hasit all. Nowhere else is there as dense an automotive industry cluster withmanufacturers, suppliers and businesses from around the globe.The Detroit Regional Chamber represents a united, 10-county area of SoutheastMichigan home to more than 315,000 companies and 5.3 million people. TheDetroit region provides a dynamic and cost-competitive environment capableof supporting today’s global businesses.This document combines substantive data and testimonials from automotive experts to prove Michiganand the Detroit region is the global epicenter of the automotive industry. I contend there is no placemore ideal to design, engineer and mass-produce automobiles or auto-related components than here.Thank you for taking a look at all the reasons why Michigan is Auto.Sandy K. BaruahPresident and Chief Executive OfficerThank youThis report was developedin partnership with:

For more information on locating or expanding automotive business in Michigan,please email info@michauto.org.michauto.org

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