"The new building is pending approval by the company executive board next week," David Ladd, manager of division marketing and communications, tells GlobeSt.com.
The $67-million expansion will serve as the world headquarters for SiemensVDO Automotive when it is completed in 2003. The company is merging with VDO, which was recently approved by the Federal Trade Commission in April, Ladd says.
Once the merger is accepted company wide, Siemens AG will be split into three equal world headquarters, with the Auburn Hills expansion site as the automotive group headquarters, serving about 50,000 employees in the US.
Two other operations will be led from Bavaria and Frankford. Combined, the company employs 440,000 worldwide.
Major growth has been seen at the current Auburn Hills site, Ladd says. About 900 are employed in the Detroit area, and that number should more than double in the next four years. "In the last 10 years, we've seen double-digit growth. Through our five-year plan, we can see the need for much more space," he adds.
The new building is also a method of consolidating operations for other Siemens groups in Michigan, including the company's real estate department. Ladd says government officials made an excellent pitch to keep the company in the area.
"While there's also the obvious reasons of staying in the area of the Big Three, we also had firm commitments from the county, the city and the state to secure us in the area," Ladd says.
About $30 million in tax credits, abatements and other incentives have been promised to the company to keep them in the Detroit area, Ladd says. The company had been strongly considering a move to the Carolinas, he adds.
"Michigan worked really hard to keep us, like they're doing with many technology companies," he notes.
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