AutoAlliance Bringing New Vehicles and New Jobs to Flat Rock

Contact: Elizabeth Boyd (517) 335-NEWS

February 10, 2003

Governor Jennifer M. Granholm announced today that AutoAlliance International, Inc. is bringing a new product line to production in Flat Rock as a result of assistance from the Michigan Economic Development Corporation (MEDC).  The expansion will secure up to 9,673 jobs for Michigan workers.

AutoAlliance International (AAI), a joint venture between Ford Motor Company and Mazda Motor Corporation, plans to invest approximately $644 million in new machinery and equipment to prepare its existing Flat Rock manufacturing facility for new vehicle production.  The all-new 2005 Ford Mustang will be built at the facility along with the new Mazda6 sports sedan.

"Michigan is competing with numerous other facilities and sites for major expansions such as this," Granholm said.  "It is a credit to our state and to its workforce that AutoAlliance decided that Flat Rock, Michigan, is the best place in the world for these new vehicles to be produced."

Ford had considered locating its new vehicle program and jobs in another North American location.  The MEDC awarded AutoAlliance a Single Business Tax credit worth up to approximately $94.9 million over a 20-year period to encourage the company's decision for Flat Rock.   In addition, the City of Flat Rock approved a local tax abatement worth up to $31 million over 12 years.

The project will retain up to 1,961 jobs currently at the Flat Rock facility and add between 1,200 and 1,400 new jobs in coming years if demand for the vehicles requires it.   According to an economic analysis conducted by the University of Michigan, it is estimated that AutoAlliance's expansion in Flat Rock will create an additional 6,323 jobs in the state indirectly.   The company's operations will result in total net state revenue increases of more than $758 million during the life of the tax credit.

AutoAlliance President Phil Spender praised the Michigan Economic Development Corporation, Wayne County, and the City of Flat Rock for working with the company to create a strong business case for the plant's continued viability in the community.

"We are grateful for the considerable community support that has made this substantial investment possible," Spender said.  "AutoAlliance will work hard to be a good partner with the city and state and provide the economic stimulus to local communities with the successful launch of our new product."

Ford Motor Company and Mazda Motor Corporation entered into a joint venture and created AutoAlliance International, Inc. in 1992.  Past vehicle models produced at the facility include the Ford Probe and Mazda MX-6.  The facility is currently producing the Mercury Cougar and Mazda 626.  In June 1999, AutoAlliance celebrated production of its 2,000,000th  vehicle at the Flat Rock facility.

The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.   For more information on the Michigan Economic Development Corporation's initiatives and programs, visit the Web site at

AutoAlliance International, Inc.
Economic Analysis
Summary Estimates
(All estimates in 2002 dollars)








$ 758,834,000

     Revenue Foregone

$  94,990,000

     Revenue Gain

$ 853,824,000

     Average Wage 

 $  1,030/week

Personal Income Generated Over
Life of the Tax Credit Agreement   

  $ 10,672,800,000