MUNICH -- Fiat S.p.A. supplier subsidiary Magneti Marelli S.p.A. plans to consolidate its North American sales and r&d teams into a larger engineering center in Auburn Hills, Michigan. The consolidation will result in 109 workers relocating to Auburn Hills from sites in Farmington Hills and Troy, Michigan.
Fiat owns 20 percent of Chrysler, which has its headquarters in Auburn Hills.
By making the move Marelli will qualify to receive $4 million in state tax credits.
Last week, the Michigan Economic Growth Authority approved the tax credits to convince Marelli to expand in Auburn Hills rather than in the southern U.S. states of Tennessee or North Carolina.
The city of Auburn Hills also is considering a tax abatement to support the project, which would create about 200 jobs over the next five years. The supplier now employs and more than 2,000 people in North America.
One reason that the U.S. Treasury Department approved the partnership between Chrysler and Fiat as part of Chrysler's taxpayer-funded restructuring was the potential savings from the two companies' sharing technology, engineering and parts. Consequently, it is likely Marelli will supply more parts for future Chrysler vehicles and other automakers in the United States.
Magneti Marelli, which makes automotive lighting, dashboards and engine control systems, ranks No. 23 on the Automotive News Europe list of the top 100 global suppliers, with sales to automakers of $7.56 billion in 2008.