Gov. Gretchen Whitmer announced that the Michigan Strategic Fund (MSF) has approved new economic development support for a Volkswagen investment that will keep more than 900 jobs in Oakland County.
Volkswagen to invest $13 million in Oakland County
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The MSF Board approved a $4 million grant through the Michigan Business Development Program to support Volkswagen Group of America’s plan to invest at least $13 million in Auburn Hills and Rochester Hills.
The investment is designed to meet current and future workforce needs while retaining more than 900 existing positions in Oakland County.
Volkswagen plans to consolidate its technical operations, including engineering, quality, warranty parts returns, and technical service, into a shared technical campus serving multiple brands under the Volkswagen Group of America umbrella.
The company will also continue operating in Auburn Hills at a newer facility tailored to its space and technology requirements.
Under the agreement, Volkswagen will retain its Michigan jobs for seven years and complete the investment within the first five years.
Whitmer said the decision underscores Michigan’s continued strength as a global automotive hub.
She credited the state’s skilled workforce and deep supply chains for helping secure thousands of auto jobs during her administration and said Volkswagen’s commitment reflects confidence in Michigan’s long-term economic outlook.
Volkswagen evaluated multiple options across its U.S. footprint as it worked to modernize facilities and streamline operations. Ultimately, Michigan’s access to technical talent and ability to retain that workforce proved decisive.
“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.”
The decision helps ensure Michigan retains high-paying research, development, testing, and finance jobs, as well as the presence of a global original equipment manufacturer.
Additional support for the project includes in-kind marketing and talent services from the Detroit Regional Partnership and workforce assistance from Oakland County.
Local leaders welcomed the announcement, calling it a win for Auburn Hills, Oakland County, and the broader Detroit region’s role in automotive and mobility innovation.
MSF expands support for innovation and small businesses
In addition to the Volkswagen approval, the MSF Board authorized $2.7 million to continue and enhance programming at the Michigan Central Innovation District in Detroit.
The funding will integrate TechTown Detroit as the district’s small business partner, strengthening support for entrepreneurs and startups.
The investment includes $2.125 million for Michigan Central Innovation District, LLC, and $575,000 for Wayne State University’s Research and Technology Park, which operates as TechTown Detroit.
This builds on a $7.5 million MSF grant approved in 2022 that helped establish Michigan Central as a nationally recognized hub for innovation, entrepreneurship, and public-private collaboration, according to the release.
State economic development leaders said the renewed funding reflects the success of the original investment and the growing demand for coordinated support systems that help businesses launch, commercialize, and scale in Michigan.
Impact and remaining gaps
Since its launch, Michigan Central has helped connect entrepreneurs to more than $1 billion in venture capital across 30-plus firms and generated an estimated $650 million in economic output through new jobs, internships, and products and services.
Programs supported more than 2,000 entrepreneurs and provided technical assistance and incubation services to 240 companies across manufacturing, clean technology, and aerial mobility.
TechTown Detroit also reported a strong year, serving roughly 1,200 entrepreneurs, more than three-quarters of them minority-owned, hosting thousands of events, welcoming members from dozens of industries, and helping generate $30 million in startup and growth capital.
Despite this progress, state and local partners identified gaps, including limited access to early-stage capital, first-customer opportunities, commercialization support, and essential back-office services such as legal, accounting, and human resources, according to the release.
To address those gaps, Michigan Central, Wayne State University, and TechTown Detroit formed a formal partnership in 2024.
The MSF’s latest approval is intended to accelerate collaboration and deliver faster, more effective outcomes for small and medium-sized businesses.
Leaders from TechTown and Michigan Central said the funding will help remove barriers to growth, speed commercialization, and ultimately lead to more high-wage jobs across Michigan.