Global Engine Alliance Chooses Michigan for Major New Facility

Contact: Elizabeth Boyd 517-335-6397

Tuesday, February 11, 2003


Auburn Hills - Governor Jennifer M. Granholm announced today that assistance from the Michigan Economic Development Corporation (MEDC) has helped convince Global Engine Alliance, LLC to choose Dundee, Michigan, as its site of preference to locate a new automotive engine manufacturing facility.  It is estimated that the new plant would generate 1,136 jobs, including 172 new jobs in its first year.


Global Engine Alliance is a joint venture between DaimlerChrysler, Hyundai, and Mitsubishi.  The facility will produce a new family of 4-cylinder aluminum engines to be used in vehicles from all three automotive partners.


"Three major automakers are working in partnership to create new engines for their vehicles, and those engines will help drive the economy of Southeast Michigan," Granholm said. "I'm proud and encouraged by the collaboration between the state and local governments and other partners that has successfully attracted this job-producing project to Michigan."


The facility is expected to create 172 new jobs in the first year of operation and 400 new jobs over a five-year period.  According to an economic analysis conducted by the University of Michigan, another 736 jobs could be created indirectly as a result of the increased economic activity the plant will generate.


Granholm joined Chrysler Group President and CEO Dieter Zetsche and United Auto Workers Vice President Nate Gooden at DaimlerChrysler headquarters in Auburn Hills to make the announcement.


"We are moving aggressively ahead with our plans to build a facility and begin production of a new family of fuel- and emissions-efficient power plants," said Zetsche. "These engines will power future generations of Chrysler Group vehicles and may also supply the needs of our Alliance partners."


Global Engine Alliance had considered locating the new facility and jobs in two other Midwest states.  The MEDC today awarded Single Business Tax credits worth up to approximately $14.4 million over a 20-year period and up to $400,000 in Economic Development Job Training grants to encourage the company's decision.  


Additional assistance for the company includes:

  • a 50 percent abatement of the company's new real and personal property by the Village of Dundee, worth an estimated $21.9 million over 12 years;
  • a $5 million Community Development Block Grant to the village of Dundee for land acquisition, site preparation, and improvements to support the new facility; and
  • the MEDC's support of Dundee's application for road infrastructure improvement grants valued at $1.6 million to support the new facility.


Pending final corporate approval, the new, 450,000 square foot facility will be built on a 260-acre site in Dundee.  In addition to manufacturing space, the facility will include warehouse and office space.


"We are very pleased that Global Engine Alliance has chosen Dundee as their site of choice," said Bill Morris, president of the Monroe County Industrial Development Corporation.  "The MEDC, the Governor's office, and a number of local officials have done an outstanding job in bringing this project together."


"We in Dundee believe that the building of the Global Engine facility in our community represents a tremendous opportunity," said Dundee Village President James Roe.  "The development is a welcome addition that will enable the village to stabilize its tax base and further provide jobs for local families."


Global Engine Alliance, LLC was formed on June 7, 2002, by DaimlerChrysler, Hyundai, and Mitsubishi for the purpose of jointly designing, developing, and engineering a new family of in-line 4-cylinder gasoline engines to be used in future generations of vehicles.  The three partners equally own the joint venture company.


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


Global Engine Alliance, LLC.
Economic Analysis
Summary Estimates
(All estimates in 2003 dollars)









  $ 76,123,000

     Revenue Foregone

 $ 14,404,000

     Revenue Gain 

   $ 90,527,000

     Average Wage 

  $ 925/week

Personal Income Generated Over
Life of the Tax Credit Agreement