Photo Courtesy of Volkswagen
LANSING, Mich. — Governor Gretchen Whitmer today announced that the Michigan Strategic Fund (MSF) has approved state support for Volkswagen Group of America, enabling the company to invest $13 million in Auburn Hills and Rochester Hills and retain more than 900 jobs in Oakland County.
The MSF Board approved a $4 million Michigan Business Development Program (MBDP) grant to support Volkswagen’s investment and long-term commitment to Michigan’s automotive and mobility ecosystem. The project will help the company meet current and future workforce needs while modernizing its technical operations in the state.
“Volkswagen’s decision to remain in Oakland County protects over 900 good-paying jobs for Michiganders and their families,” said Governor Gretchen Whitmer. “Michigan put the world on wheels, and since I took office, we’ve secured more than 36,000 auto jobs by investing in our people, our supply chains, and our innovation economy. I’m grateful Volkswagen continues to see the value of Michigan’s talent and infrastructure.”
As part of the project, Volkswagen Group of America will consolidate its technical activities—including quality, engineering, warranty parts return, and technical service—into a shared technical campus serving multiple brands within the company. Volkswagen will also maintain a presence in Auburn Hills at a newer facility, optimizing space and technology to support future operations.
Under the agreement, Volkswagen will retain jobs for seven years, with the required capital investment completed within the first five years.
“Relationships, legacy, and innovation matter,” said Quentin L. Messer, Jr., President and CEO of the Michigan Economic Development Corporation (MEDC) and Chair of the MSF Board. “The MSF Board’s approval reflects our commitment to Michigan’s long-term prosperity—not only by retaining major employers like Volkswagen, but also by strengthening our small business and entrepreneurial ecosystems across the state.”
Volkswagen has maintained a strong presence in Auburn Hills for decades. As the company evaluated options across its national footprint to modernize facilities and streamline operations, Michigan’s access to top-tier automotive and engineering talent proved decisive.
“Michigan has long been an important home for Volkswagen Group of America,” said Kjell Gruner, President and CEO of Volkswagen Group of America. “We’re excited to continue our presence in the state, reinforcing our commitment to our people while advancing our technical capabilities. We appreciate the collaboration with Governor Whitmer and the MEDC and look forward to supporting Michigan’s leadership in mobility and engineering.”
The project secures high-wage R&D, testing, and finance jobs that pay well above the regional median wage and ensures the continued presence of a global OEM in Michigan. Additional support for the project includes in-kind marketing and talent services from the Detroit Regional Partnership, along with workforce assistance from Oakland County.
“Volkswagen’s decision to stay and expand in Auburn Hills is a major win for our region,” said Oakland County Executive David Coulter. “Their continued investment strengthens our local economy and reinforces Oakland County’s role as a hub for automotive innovation.”
“We are thrilled that Volkswagen has chosen to maintain such a strong presence in Auburn Hills,” said Auburn Hills Mayor Eugene Hawkins. “This investment is a strong vote of confidence in our workforce and our region’s leadership in mobility and automotive engineering.”
