Detroit Mayor Mike Duggan told the International Economic Development Council, the world’s largest gathering of economic development professionals, on Monday how the city clawed its way back into the auto site selection game – and what it took to compete against “600-acre cornfields in the South.”
The big picture
After 20 years without a new auto plant, Duggan made it his first priority when he took office in 2014 to change Detroit’s reputation.
He went straight to auto CEOs – Bill Ford, GM’s Mary Barra, and Fiat Chrysler’s Sergio Marchionne – with a simple ask: “I don’t want charity. Tell me what goes into these decisions. Next time you site a plant, call me first. If I can’t accommodate it, fine.”
The CEOs’ needs were clear:
Vacant land.
Fast approvals.
Policy stability.
To deliver, Duggan said he met with the City Council to lock in the speed and stability required: no sudden shifts in strategy, no up-front cash. Instead focusing on discounted taxes on new jobs and investment.
The first proof point
In 2015, Ford supplier Flex-N-Gate’s owner Shahid Khan had 30 days to site a new plant. Duggan delivered land and permits in five, in what he called “the fastest permitting process in the country.”
The enduring signal: Detroit’s workforce. When 500 jobs were posted, 16,000 Detroiters applied.
“Everybody said, whoa, Detroit might be a place where we can build again,” Duggan said. “And then we landed a 700 employee seating plant from Lear and then a 500 employee dashboard plant for Dakota.”
Bill Ford’s personal involvement was also crucial, according to news reports at the time – underscoring how mega-deals are won like campaigns, with coalitions of business leaders, elected officials, and workforce momentum all reinforcing the case.
The big win
In 2019, Duggan heard Fiat Chrysler was scouting sites for a new Jeep plant. When he pitched Detroit, Marchionne’s response was blunt: “Mike, you don’t have that much land. I’ve got 600-acre cornfields in the South I can build on tomorrow. They’re throwing incentives at us. You really can’t compete.”
Duggan proved otherwise – assembling land near an existing plant in 60 days, on one condition: Chrysler had to interview Detroiters first. The City screened applicants to ensure readiness.
The result: 5,000 hires, all city residents, at $65,000 plus benefits – Detroit’s first new auto assembly plant in 20 years.
“And that’s how the city came back,” Duggan said.
IEDC tours this week — including Ford’s $740 million Michigan Central Station restoration — underscored a wave of recent investments that have reinforced the city’s resurgence.
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S&W’S TAKE
For an urban center like Detroit to compete with southern greenfields, Duggan showed how assertiveness and creativity can force a city into contention – putting the city in front of CEOs and delivering exactly what they asked for: land, speed, and predictability.
