After 75 years in Chicago, BorgWarner Inc. is moving its corporate headquarters to Auburn Hills, Mich.
The supplier of transmission, engine and powertrain assemblies said it is moving to the Detroit suburb because it wants to be in the hub of the global automotive industry and near its year-old Auburn Hills technical center.
The company has considered such a move since it became a purely automotive parts supplier in 1993. BorgWarner has been working to diversify its customer base, but the Big 3 auto makers still represent 52 percent of its revenue.
According to Crain News Services, the city of Chicago offered BorgWarner incentives worth more than $2 million to stay. The company's move saves new Chairman and CEO Timothy Manganello from having to move his residence. He and some other top company executives already live in the Detroit area.
The supplier, which plans to spend about $8.9 million related to the move, reported sales last year of $1.5 billion to original equipment manufacturers in North America.
Construction of the 60,000-sq.-ft. building is scheduled to begin early next year, with BorgWarner's move into the new leased facility expected to be completed by mid-2005.
BorgWarner has about 60 employees in Chicago, including corporate officers, accounting, legal and other staff members. All will be offered positions in Auburn Hills. The company's 185,000-sq.-ft. technical center has 450 employees in areas including sales, engineering and research and development.