Magneti Marelli, a Fiat-owned automotive supplier, has announced it will be setting up shop in Auburn Hills, Michigan. The Italian firm will invest $4.5 million into its new Auburn Hills location over the next five years, transforming three buildings into one and creating 200 new jobs.
The deal was sealed earlier on Tuesday following the Michigan Economic Growth Authority’s decision to approve a new tax credit system. Per the terms of the new tax credit system, businesses that create jobs paying at least 300 percent of the national minimum wage are eligible for tax breaks.
According to the Detroit Free Press, Auburn Hills-based Magneti Marelli employees will earn an average of $1,718 per week. Magneti Marelli manufactures several vehicle components, including dashboards, lighting systems and shock absorbers.
The announcement of Magneti Marelli’s new Michigan operations lends credence to earlier reports that Chrysler is searching for a new North American plant to produce its forthcoming Fiat-based vehicles. It also remains possible that Magneti Marelli could become a regular supplier to Chrysler’s current North American plants.
