Google self-driving spinoff Waymo to put factory in Michigan
January 24, 2019 by David Eggert and Tom Krisher The Associated Press
January 24, 2019 – Google’s self-driving car spinoff Waymo said Tuesday it will bring a factory to Michigan, creating up to 400 jobs at what it describes as the world’s first plant “100 per cent” dedicated to the mass production of autonomous vehicles.
The company plans to spend about US$13.6 million to retrofit a to-be-determined manufacturing facility in the Detroit area. In exchange, it will get a state incentive grant worth up to US$8 million that was approved Tuesday by the Michigan Strategic Fund Board.
Waymo spokeswoman Alexis Georgeson says the company plans to hire up to 400 people to work at the factory, including engineers, operations experts and fleet co-ordinators. She says Waymo is looking for a site and hopes to open the plant in the middle of this year. A memo from the Michigan Economic Development Corp. says Waymo will create 100 jobs, with the potential for up to 400, and it chose Michigan despite a “high level of interest” from states in the Midwest, South and Southwest.
The company integrates its self-driving system into vehicles it buys from automakers and is currently testing autonomous Chrysler Pacifica minivans in a preferred rider program for passengers in the Phoenix area, but with human backup drivers on board. It plans to expand the service to the San Francisco area but has not given a time frame. Waymo previously announced plans to buy 62,000 Pacificas and 20,000 I-Pace electric SUVs from Jaguar.
Waymo, which has a 20-employee facility in the Detroit suburb of Novi where it tests vehicles in snowy weather, will put the new factory in Wayne, Oakland or Macomb counties, where the auto industry dominates the economy with thousands of jobs from U.S. and foreign-based automakers as well as parts supply companies.
“As we begin to commercialize our business and vehicle supply grows, we’re laying the foundation for a scalable, robust vehicle integration plan, starting in Michigan,” the company says in a blog.
Bryant Walker Smith, a University of South Carolina law professor who studies autonomous vehicles, says the announcement shows that Waymo, which was spun off from Google and is part of parent company Alphabet Inc., has plans to integrate itself into the existing auto industry.
“You can’t reinvent everything. Coming to Michigan in some ways is your complete recognition of that,” Smith says. “Michigan is where you go in the United States to be fully immersed in automotive culture and industry.”
Smith says Waymo will find abundant labour supply at a lower cost than in California, where it is now headquartered.
The announcement confirms that Waymo will use the Michigan factory to produce a large number of vehicles for ride-hailing services in many cities, Smith says. But it did not say when it will deploy the vehicles without human backup drivers.
“This is an announcement about a facility to be, and the cars that will come from that facility one day,” Smith says. “What this is, is that Waymo plans to eventually expand. They’ve been setting that foundation for a couple of years now.”
Michigan Economic Development Corp. CEO Jeff Mason says Silicon Valley companies are increasingly interested in relocating to or expanding in the state. He cited KLA-Tencor’s plan to open a $70 million semiconductor research-and-development centre in Ann Arbor and Samsung SDI’s plan to build a $60 million-plus electric vehicle battery pack plant in Auburn Hills.