Michigan Wins Daimler Alternative Propulsion R&D Centre

Good news for Detroit? In what seems to be slowly becoming a ghost town, Detroit now has something to celebrate. Daimler,

maker of Mercedes-Benz and smart vehicles, has reportedly worked out a deal with the state of Michigan to build a new research and development center for hybrid and electric vehicles in Ann Arbor.

According to a report by the Ann Arbor Business Review as seen on MLive.com, one of Michigan's predominant portals, the facility will focus on the development of hybrid transmissions, electric motors and powertrain management software, among other projects. It will be the “first major alternative propulsion technology operation in the Ann Arbor region,” says the report.

Now the search is on for a 65,000 square-foot home for the new facility, something that shouldn't be too difficult considering the current vacancy rate in and around Ann Arbor. Daimler will move its Troy, Michigan operation into the new Ann Arbor facility as well.

According to the report, the Ann Arbor region is “assembling a range of companies devoted to batteries and electric vehicle technology,” a reality that,

while not coming close to replacing the sheer number of lost auto worker jobs in recent years, at least shows growth in an area that many have believed might never gain traction again.

Employment in mind, the $ 9.9 billion announcement projects 223 jobs directly within the facility over the next 10 years, for a total of 454 jobs directly and indirectly.

Interestingly, Michigan won Daimler's business against some very stiff competition. Reportedly California and South Carolina were being considered, both strong automotive states, but it appears only Michigan was willing to offer a tax package worth approximately $7.5 million over the next 10 years.

Michigan is also filled with highly trained and now out-of-work auto specialists, a talent pool ripe for the picking.

Is alternative propulsion the new hope for Michigan? Certainly this news bodes well for a state that's seen its fair share of negative news lately, and may just be the catalyst for luring other automakers into the area for similar reasons.