Chinese Automobile Company to Open R&D Center in Farmington Hills


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China's Guangzhou Automobile Group, which produces the GS8, a mid-size SUV, plans to create a new R&D facility in Farmington Hills.

Photo courtesy of Guangzhou Automobile Group

Guangzhou Automobile Group in China plans to invest more than $4.4 million in a new R&D facility in Farmington Hills, Michigan Governor Rick Snyder announced today.

The investment is expected to create 62 jobs. Guangzhou will expand its current operations to focus on vehicle and product development. The project resulted in a $500,000 Michigan Business Development Program performance-based grant for the company.

“This is incredible news for Oakland County,” says Snyder. “This investment is the product of continued friendships and working relationships with foreign investors that have led to more jobs for Michiganders. We look forward to working with GAC as the company grows and adds jobs here.”

Snyder met with Guangzhou during several trade missions to China, including his 2017 mission, when he met with Guangzhou president Feng Xingya and other officials to discuss the potential of expanding to Michigan. The placement of the R&D facility in Farmington Hills will have a strong impact on where the company decides to locate its expected North American headquarters.

Snyder has led seven trade missions to China, intending to establish relationships with Chinese companies and government officials. Between January 2011 and July 2018, Michigan has received $1.2 billion in new business investment from China that created 6,304 jobs.

Guangzhou Automobile Group Co. Ltd. was founded in 1997 and is the fifth-largest auto conglomerate in China. It produces cars through joint ventures with foreign and American automakers. Its first vehicle to enter the U.S. market is expected to be the GS8, a mid-size SUV that is already for sale in China.

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