JACKSON COUNTY, MI – As the automotive market continues to move away from internal combustion engines, Michigan Automotive Compressor Inc. will begin production of new parts for electric vehicles.
MACI plans to spend $82 million and retain 241 jobs by installing the new production processes in the Parma-area factory, west of Jackson, to ensure the company’s long-term viability and future growth, officials said.
“As customers shift from current internal combustion engines over to electric, if we did not prepare to produce the new type of product, it would be job loss for us,” Vice President Joe Shaughnessy said. “So, in our case, it’s a direct one for one replacement as people purchase electric versus gas.”
While actual production of the new parts won’t begin until December 2024, work has started internally to kick off the project. Employees involved with production have begun training for the new products, and so far, learning has been going well, Shaughnessy said.
Some minimal work will need to be done to the building, Shaughnessy said, as older technology manufacturing lines must be removed to prepare spaces in the plant for the new manufacturing lines.
“It’s not a physical brick and mortar expansion, it’s a repurposing of underutilized areas in the plant,” Shaughnessy said.
It’s essential for MACI to make this transition to electric vehicle production, Shaughnessy said.
“It is necessary for us to survive in the automotive market,” he said. “If we don’t change with the market, we basically will decline to the point that we wouldn’t survive.”
MACI is a manufacturer of compressors for automotive air conditioners for major vehicle manufacturers. These same parts will be made for the electric vehicles, as well as final production assembly, Shaughnessy said.
At this time MACI officials cannot directly specify the customers who are contracted with the company for electric vehicles, Shaughnessy said.
The MACI project contributes to the Michigan Economic Development Corporation’s ongoing efforts to strengthen Michigan’s leadership in automotive manufacturing, officials said, adding it also builds on the state’s work to position itself as the epicenter of autonomous and electric vehicle manufacturing in the U.S.
The Michigan Strategic Fund approved a five-year, 100% State Essential Services Assessment negotiated assessment rate for the company, which is valued at $984,000 for the company’s $82 million investment. The company also anticipates receiving a property tax abatement in support of the project, officials said.
The Enterprise Group of Jackson considers this project a transformational and significant opportunity for MACI and the Jackson community, Vice President of Economic Development Alex Masten said.
“We are excited about MACI’s equipment investment to bring localized production of electric compressors to Michigan, specifically Jackson County,” Masten said. “This project has a huge impact on our local economy in terms of retained jobs and capital investment, so we are pleased to hear of the MEDC’s and MSF boards’ support of this very important transition.”
MACI is a joint venture between Toyota Industries Corporation and DENSO and has more than 1,000 employees at its Jackson County facility at 2400 N. Dearing Road. MACI started production in Jackson County in 1990.
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