Volkswagen Group of America Keeps 900 Jobs in Michigan

LANSING, Mich. - Today, Governor Gretchen Whitmer announced the Michigan Strategic Fund (MSF) approved support for Volkswagen Group of America to invest $13 million in Auburn Hillsand Rochester Hills(Oakland County) to meet existing and expected workforce demands, as well as retain more than 900 jobs.

"Volkswagen's decision to remain in Oakland County protects over 900 good-paying jobs for Michiganders and their families who will continue to call our state home," said Governor Whitmer. "Michigan put the world on wheels, and since I took office, we've worked hard to grow our economy and secure more than 36,000 auto jobs. I'm grateful that Volkswagen continues to see the benefit of Michigan's strong auto supply chains and talented workers, and I look forward to their continued success here in our state."

"Relationships, legacy, and the opportunity for innovation matter. I remain grateful to the MSF Board for their support of Michigan's prosperity today and for generations to come, as evidenced by their approval of Volkswagen and Michigan Economic Development Corporation (MEDC) programs and services related to small businesses and furthering Michigan's growing entrepreneurial ecosystem," said Quentin L. Messer, Jr., CEO of the MEDC and MSF Board Chair. "Alongside Governor Whitmer and our partners in the state legislature, we remain as committed as ever to weathering storms and guiding fellow Michiganders of all backgrounds, career experiences, and aspirations to programs and ecosystem partners that will help them 'Make it' bigger and more boldly in Michigan."

Volkswagen Group of America Set to Invest in Oakland County

OVERVIEW: The MSF Board approved a $4 million Michigan Business Development Program (MBDP) grant for Volkswagen to retain more than 900 jobs and invest at least $13 million in Oakland County.

As part of this investment, the company will consolidate all technical activities - including quality, engineering, warranty parts return center, and technical service center to serve as a technical campus shared across all functions and brands that are part of Volkswagen Group of America. Volkswagen will also maintain a presence in Auburn Hills at a newer facility, optimizing space and technological needs for the company.

The company's agreement to retain jobs will be for seven years, and the investment must be made within the first five years of the term.

WHY IT MATTERS: Volkswagen Group of America has maintained a strong presence in Auburn Hills for decades. As part of efforts to optimize costs, streamline resources, and modernize facilities, the company evaluated options across its U.S. footprint. Ultimately, Michigan stood out thanks to its access to top talent and the ability to retain that talent.

"Michigan has long been an important home for Volkswagen Group of America. We're thrilled to be able to continue our presence in the state, reinforcing our commitment to our people and advancing our technical capabilities in the state," said Kjell Gruner, President and CEO of Volkswagen Group of America. "We appreciate the collaboration with Gov. Whitmer and the MEDC and look forward to continuing our work together to support Michigan's leadership in mobility and engineering."

By making this decision, Michigan secures R&D, testing, and finance jobs that pay well above the regional median wage and ensure the continued presence of a global OEM in Michigan.

In addition to MSF support, the Detroit Regional Partnership has offered in-kind services from its marketing team and talent solutions team to support Volkswagen, and Oakland County will provide talent services to assist Volkswagen with connecting to, and retaining, top talent.

WHAT THEY'RE SAYING: "Volkswagen's decision to stay and expand its facilities in Auburn Hills is a major win for the region," said Oakland County Executive David Coulter. "Their commitment to the community strengthens our local economy and reinforces that Auburn Hills is a premier location for automotive innovation and growth."

"We are thrilled that Volkswagen has chosen to maintain such a strong presence in Auburn Hills. Their investment is a strong vote of confidence in our region's workforce and the leadership position we hold in Michigan in the automotive and mobility industries,"saidAuburn Hills Mayor Eugene Hawkins. "We look forward to seeing their success benefit the Auburn Hills community, the greater Detroit area, and the State of Michigan for years to come."

MSF Board Approves Continued Support for Small Businesses, Innovation

OVERVIEW: The MSF Board also approved $2.7 million to fund the continuity of the Michigan Central Innovation District and its enhancement by integrating TechTown Detroit as the small business partner in the City of Detroit (Wayne County). Funding will be divided between Michigan Central Innovation District, LLC ($2.125 million) and Wayne State University Research and Technology Park in the City of Detroit, doing business as TechTown Detroit ($575,000).

In February 2022 , the MSF Board approved a $7.5 million grant to Michigan Central Innovation District LLC to launch programmatic support to lay the foundation for what has become a national model for innovation, entrepreneurship, and public-private partnerships.

"Today's action by the MSF Board to continue supporting Michigan's small business and entrepreneurship ecosystems is a significant sign of the success of our initial investment and the opportunities it has afforded countless businesses, entrepreneurs, and innovators eager to call Michigan home," said Amy Rencher, Senior Vice President of Small Business and Talent at the MEDC. "By strengthening the partnership across three proven entities in Michigan Central, Wayne State University, and TechTown Detroit, we are supporting local, organic talent and ideas in ways that will have a lasting impact. Before something becomes a household name, it starts with the dreams, visions, and support to see it come alive that come with this kind of investment."

WHY IT MATTERS: The investment will generate high-quality jobs and catalyze a unique neighborhood-to-regional innovation pipeline ensuring small-to-medium businesses receive expert technical assistance, including manufacturing and automation support services, ensuring lasting viability for those businesses and the region.

Of the prior MSF allocation, more than half of the $7.5 million investment flowed directly to startups and supported innovation infrastructure like the development of the Advanced Aerial Innovation Region. At the end of 2025, these combined programs contributed to Michigan Central's activity and growth, including:

• Access to $1 Billion of funding across 30+ venture capital firms
• $650 million in economic output in the form of new internships, jobs, and produces and services in market
• Support for 2,000+ entrepreneurs with public-private network resources
• Technical assistance and incubation services to 240 companies, including:
• 20 manufacturing-focused companies developing AI-powered quality control systems, collaborative robotics, manufacturing platforms, and autonomous mobility solutions;
• 35 clean tech-focused companies developing home electrification, energy systems, urban EV charging, and battery safety technologies; and
• 15 aerial mobility companies developing testing infrastructure, regulatory partnerships and supporting workforce development.

TechTown also had a solid 2025, including:

• Serving an estimated 1,200 entrepreneurs, 77% of whom are minority-owned
• Hosting roughly 4,400 events
• Welcoming 932 members from 49 different industries
• Generating $30 million in startup and growth capital

Still, gaps remain, limiting the pace of commercialization and scaling for early capital access, first-customer procurement pathways, structured commercialization support, and startup back-office services (such as legal, accounting, and HR services). As such, Michigan Central, Wayne State, and TechTown Detroit established a partnership in 2024, and today's approval by the MSF helps the three entities to better collaborate and produce stronger outcomes faster.

WHAT THEY'RE SAYING: "This funding is a major win for our small businesses' competitive edge. TechTown, the City of Detroit, and Michigan Central will work together to remove the barriers that keep neighborhood small businesses from growing," said Ned Staebler, CEO of TechTown and Vice President of Economic Development at Wayne State University. "The MSF's commitment enables us to deploy the critical back-office services, expert coaching and resources, and technical support required to equip Detroit's small businesses with the tools to stay, scale, and lead Michigan's economy."

"Michigan startups shouldn't stall because they can't access early capital, first customers, or the support needed to scale. MSF's investment closes those gaps so more small businesses can commercialize faster and grow in Michigan," said Mark de la Vergne, Director of Network Growth for Michigan Central. "The outcome will be more high-wage jobs statewide."

NOTE FROM THE MEDC:

Investment and job numbers represent the commitment made by the business to the state of Michigan. Terms will be formalized in a performance-based project agreement, with funds disbursed as reimbursement based on eligible expenditures, and are subject to amendment or cancellation if the commitments are not met due to risks or uncertainties. The Michigan Economic Development Corporation provides a public annual report on agreements and their status to the state legislature.

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: FacebookInstagramLinkedIn, and Twitter.