Making Key Investments in Automotive Industry, Defense Leadership

LANSING, Mich. – Tuesday, Governor Gretchen Whitmer announced Michigan Strategic Fund (MSF) approval of investments in Detroit and Grayling Township that will build on the state’s leadership in the automotive and defense industries. With Laepple Automotive establishing its U.S. headquarters at a historic manufacturing facility in Detroit and a new integration and assembly facility from global defense and aerospace company Saab in Grayling Township, Michigan is celebrating two key companies choosing to ‘Make It in Michigan.’ 

“Today’s approved projects will bring up to 242 quality jobs to Detroit and Grayling Township and add to our storied reputation as leaders of the automotive industry and the Arsenal of Democracy,” said Governor Whitmer. “We welcome Laepple Automotive and Saab to Michigan and look forward to their future growth in the state together as we work to build our economy for Michiganders across the state.” 

“Today’s approved projects reflect Team Michigan’s commitment to our ‘Make It in Michigan’ economic development strategy focused on People, Places and Projects, as we welcome investments that will strengthen our leadership in the automotive and defense industries,” said Quentin L. Messer, Jr., Michigan Economic Development Corporation CEO and Michigan Strategic Fund President and Chair. “I am grateful to Governor Whitmer, the Michigan Legislature, the MSF Board, and our community partners for their continued work to build Michigan’s economy for our 10.5 million friends and neighbors. We are grateful for the vote of confidence in our state and her residents given by Saab and Laepple as they ‘Make It in Michigan’ and build futures for employees and entrepreneurs that will supply them in Northern Michigan and Detroit.”   

German auto parts manufacturer Laepple Automotive establishing its new U.S. headquarters and main operations at historic facility in Detroit 

The MSF board approved support for Laepple Automotive, the U.S. entity of German auto parts manufacturer LÄPPLE AUTOMOTIVE, which plans to establish its new U.S. headquarters and main operations in the city of Detroit. The project will create up to 173 new jobs and up to $93.4 million in capital investment in Detroit, solidifying the company’s presence in the state while adding to Michigan’s robust automotive industry. 

Laepple Automotive manufactures stamped spare body parts for automobiles such as hoods, fenders, doors, and trunk lids, with the capability to produce any part for any OEM. 

The project’s location, the Mount Elliott Tool and Die facility, has been a significant automotive manufacturing site for over 80 years. Currently vacant, the facility will be significantly rehabilitated with the latest automotive manufacturing equipment installed. 

By the numbers: The MSF board is supporting the project with a $3.5 million Michigan Business Development Program grant and approval of a five-year, 100% State Essential Services Assessment (SESA) exemption with an estimated value of up to $653,760 for its $78,850,000 eligible investment in Eligible Personal Property.  

“Detroit is the origin of the American automotive industry, and we are excited to open a new chapter in our company's history here,” says Oliver Wackenhut, CEO of Laepple Automotive.  “With our expertise and passion for body-in-white manufacturing, we will not only bring the plant to life, but also offer our customers new opportunities for their projects by expanding our international footprint.” 

“Laepple Automotive is recognized internationally for their advances in forming sheet metal and car body assembly,” said Maureen Donohue Krauss, CEO and president of the Detroit Regional Partnership. “They’ve helped bring life back to older industrial facilities in Germany, which we were recently able to tour, and we’re excited for them to do the same at the former Mt. Elliott facility in Detroit. We were happy to partner with the MEDC and DEGC to successfully make the case for Michigan and the Detroit Region as the best place for Laepple to establish a new presence and grow in North America.” 

“We’re thrilled to welcome Laepple Automotive’s new U.S. headquarters to the city of Detroit,” said state Senator Mary Cavanagh (D-Redford Twp.) “There is no better place in America to invest in automotive jobs and innovation than right here in Motor City, adding to Michigan’s continuing legacy and future as industry leaders in manufacturing and driving our state’s economic growth and prosperity.” 

“The decision by Laepple Automotive to establish its new U.S. headquarters in Detroit is a testament to the strength and resilience of the city’s workforce and its proud history of putting the world on wheels,” said state Senator Paul Wojno (D-Warren). “This investment will not only bring new jobs and bolster our local economy, but will also ensure that the Motor City remains a key player in the automotive industry for years to come.” 

“Our state’s middle class was built on the assembly line and in automotive manufacturing plants across the Detroit area,” said state Senator Veronica Klinefelt (D-Eastpointe). “Laepple Automotive’s decision to choose Detroit as its new U.S. headquarters will create new opportunities for growth and innovation and help more families in our community secure a good-paying, middle-class job.” 

"Detroit has long been recognized as the world's automotive capital, a title it has proudly earned and continues to uphold through resilience, innovation and leadership. The automotive industry isn’t just part of Detroit’s past and present — it’s central to our future," said state Senator Jeremy Moss (D-Southfield). "Laepple’s presence will generate new avenues for growth, from creating quality jobs for Detroit’s skilled workforce to fostering partnerships in the growing electric vehicle and advanced manufacturing sectors. This investment strengthens not only our industrial base but also our local economy, reinforcing Detroit’s role as a driving force in the future of mobility."   

Saab to establish integration and assembly facility bringing high-wage manufacturing and engineering jobs to Grayling Twp.  

The MSF board also approved support for Saab Inc., which plans to establish an integration and assembly facility in Grayling to support the engineering and production of cutting-edge products to meet the needs of the U.S. Military. With more than 22,000 employees globally across every continent, this assembly facilities will mark Saab’s first investment in Michigan. The facility will include jobs across all aspects of the company’s land-based system products, including manufacturing production and assembly positions to testing, engineering and operations jobs with wages starting well above the current regional median wage. 

The project is expected to create more than 70 qualified new jobs and bring a capital investment of $75 million or more in Grayling Township, building on the state’s leadership in the future of defense and national security.  

By the numbers: The project is being supported by a $3.5 million Michigan Business Development Program (MBDP) grant and approval of a 15-year, 100% SESA exemption with an estimated value of up to $664,500 for its eligible investment in Eligible Personal Property.  

Later this year, the Michigan Department of Natural Resources, under an existing memorandum of understanding with the local community, will publicly notice and consider a sale of land for the facility. 

“Given current global security challenges, it is critical the United States strengthens our national defense capacity. We are proud to partner with the state of Michigan and the local community to establish a world-class facility that, with Saab’s range of products, will increase and modernize the domestic production of munition systems,” said Erik Smith, President and CEO of Saab in the U.S. “We are making a long-term commitment not only to the U.S. defense industrial base, but to the local community as well. Saab plays a positive role in the communities where we live and work, creating jobs and investing in the local community, and we look forward to joining the Grayling community.”  

About Michigan Economic Development Corporation (MEDC)
The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.

Photo courtesy MEDC