Chinese Auto Supplier to Invest $27M in Detroit, Create 160 New Jobs


YFS Automotive Systems Inc., a Chinese auto supplier, is expanding its U.S. footprint by investing $26.9 million in a new facility in Detroit to design, test, and manufacture automotive fuel system components. The new facility is expected to generate 160 new jobs in the city.

The Michigan Strategic Fund approved the $1.3-million incentive to bring the project to Michigan rather than Ohio. The move was announced Tuesday by the Michigan Economic Development Corporation.

“YFS locating in Detroit is a reaffirmation of Michigan’s competitive business climate,” says Gov. Rick Snyder, who met with YFS during his 2014 investment mission to China. “Our strong economy combined with our top talent makes investing in Michigan ideal for local and international businesses to locate and thrive.”

YFS Automotive Systems is a Tier 1 supplier of fuel tanks and urea systems for automotive OEMs. The company was established in 1997 as ABC Group Fuel Systems, Inc. and was purchased in 2014 by the Rongshi International, a Chinese-owned automotive supplier. The company plans to acquire approximately 30 acres of vacant industrial property in Detroit to construct a 150,000 square-foot manufacturing facility.

“This is an important step for YFS and Detroit. Manufacturing investments can provide good opportunities for Detroiters, and Detroit has great potential for attracting more investments and creating even more jobs in the future,” Detroit Mayor Mike Duggan says.

In addition to the support from Michigan Strategic Fund and city of Detroit, YFS is also requesting assistance from Detroit Employment Solutions Corporation to help it develop its workforce.