Troy, Michigan-based Magna Powertrain of America has announced plans to expand its operations in Muncie, Indiana. The automotive parts and systems supplier will invest $9.3 million to grow its operations by adding new equipment to the 200,000 square-foot MPT Muncie facility. The expansion is expected to create 50 full-time jobs with a completion date of April 2020.
The Muncie-Delaware County Economic Development Alliance worked with the Delaware County Council to approve a 10-year tax abatement for the project. The new equipment is seen as vital in helping Magna keep pace with increased demand for its products. The company currently employs more than 460 people at the Muncie facility. The new jobs are expected to come with wages above the county average for manufacturing.
The investment comes at an interesting time for the U.S. automotive market; the warning predictions of a downturn after years of positive returns appears to be materializing. Issues stemming from alleged mismanagement at Fiat Chrysler has led the company to pursue a potential merger with Renault, and Ford recently announced that it will be cutting 7,000 jobs – about 10 percent of its global workforce. Additionally, Ford, GM, FCA and Toyota all reported a drop in first-quarter sales, but appear to be optimistic for the remainder of 2019.