German EV charging company plans $14.4M North American HQ in Corktown

[Airforceguy]

Yet another electric vehicle charging company is targeting Southeast Michigan for operations.German EV charging company EcoG GMBH plans to invest $14.4 million and create a North American headquarters in Detroit's Corktown neighborhood, adjacent to Ford Motor Co.'s roughly $800 million Michigan Central project, according to a briefing memo from the Michigan Economic Development Corp.
EcoG would be headquartered in the renovated Book Depository building, now called Newlab. The Michigan Strategic Fund board on Tuesday approved a $1.5 million Michigan Business Development Program grant as part of the capital stack to make the EcoG development economically viable, according to a memo from the MEDC to the MSF board. The memo says the company also considered facilities in Georgia and Ohio for its investment.

“This project aligns with the MEDC’s strategic focus area of supporting a business in the target industry of mobility and builds on the state's work to position itself as the global leader in the future of mobility and vehicle electrification,” according to the memo. “The proposed project will also impact the local region with high wages from an emerging EV technology provider.”

The planned project would result in up to 45 new jobs paying $2,777 per week plus benefits, according to the memo. Founded in 2017 in Munich, Germany, EcoG has 42 employees and a 15% market share in the European Union EV charging market.

EcoG has partnerships with about 30 car manufacturing companies, including each of the Big 3 automakers headquartered in metro Detroit, according to the memo. The company raised nearly $6.3 million in a Series A venture capital funding in late 2022, according to Pitchbook, a data provider for the startup and venture capital sector.

https://www.crainsdetroit.com/manufa...n-base-detroit

[masterblaster]

Thanks for posting. This is exceptional news for Ford's efforts, Corktown, and the city of Detroit.

[EASTSIDER BALDUCK]

Seems like everyone is chasing the fed. free money, before it dries up.

[DetroiterOnTheWestCoast]

Seems like everyone is chasing the fed. free money, before it dries up.

Has any industry been subsidized more than fossil fuels?

The Book Depository looks pretty good.

[Richard]

Seems like everyone is chasing the fed. free money, before it dries up.

The same thing happened with solar and after spending billions of taxpayer dollars to set the stage for the Chinese to control it all now.

We suck as a country when we cannot be innovative enough to build our own stuff without having to farm it all out.

Research the company involved in the other announcement,they are like the Ford of the early days,they own the entire supply line,from the mines for the materials to the production facility’s ,in both alternative energy and Hydrogen,so they have all the bases covered.

Canada supplies electricity for much of our east coast to millions,we are spending a trillion on infrastructure and we cannot even figure out how to generate our own electricity cost effectively.

[renf]

I strongly agree with MasterBlaster's comments about the benefits of
having a battery firm from Munich set up their US headquarters in
Corktown. This, and the development of a battery factor on Piquette
are very positive signs of the revival of Detroit as an employment center.

New England does use power from Canada but almost all of that power
is hydropower coming from dams located quite far up into Quebec.
I don't see why this is a problem. The US-Canadien border has been
peaceful since the end of the war of 1812,

[Richard]

Canada is the #1 supplier of electricity to the United States,almost if not free in the evening off peak hours,the twin towers stood there peacefully until one day they did not.

But do not confuse the bigger picture with the local one even though it is all connected,it’s intent is not ment to undermine the positive part of jobs and investment in the city.

Personally I just prefer American tax dollars be more supportive of American companies where the corporation profits remain in country.

It’s investing in jobs and not the country,I would not even have an issue if it was an American company that taxpayers fully funded the startup,the knowledge,expertise and ability is not lacking in the city where as long term it would be a good return or investment of taxpayer dollars.

Its not Canada itself that concerns me,it’s others that have the ability to use them as a means to an end and what resistance they will provide verses bending the knee in the name of peace,it’s the French thing.

German investment also built the steel plants that supply the southern auto manufacturers.

[K-slice]

This is a very good sign as Ford hopes to grow this campus into a diverse collection of automotive and auto/tech companies. In the global auto biz it's important where foreign companies plant their flag. There is a strong pull from silicon valley to take over the auto industry and basically merge it with tech, but this move seems to be a win for the good guys.

Years ago, before WFH, I had hoped Rivian would move their HQ into the city from Plymouth and keep the old Burroughs factory as their tech center. We lost that one, and the Rivian HQ in general due to that aforementioned silicon valley magnetism.

Wins like this though will bring more wins in the future.

[401don]

This is a very good sign as Ford hopes to grow this campus into a diverse collection of automotive and auto/tech companies. In the global auto biz it's important where foreign companies plant their flag. There is a strong pull from silicon valley to take over the auto industry and basically merge it with tech, but this move seems to be a win for the good guys.

Years ago, before WFH, I had hoped Rivian would move their HQ into the city from Plymouth and keep the old Burroughs factory as their tech center. We lost that one, and the Rivian HQ in general due to that aforementioned silicon valley magnetism.

Wins like this though will bring more wins in the future.

Yes. Good news indeed, and thank you for returning the thread to common sense.

[K-slice]

Yes. Good news indeed, and thank you for returning the thread to common sense.

Do what I can.

[Rocket]

Bravo to EcoG for investing money here.

I hope we're not incentivizing it at all though. Not that I don't root for their success, but "Up to" 45 jobs hardly seems worth a news story.

And EV Charging doesn't make money. Even at very high rates, none of the EV charging companies can make a profit.

1. The units break often, and repair techs are in terribly short supply,
2. The companies get charged A LOT by the power companies for their huge electrical connections, needed in case more than one or two cars try to charge at the same time.
3. And the units themselves cost about $200,000 EACH to buy and install.

Even charging rates that are nearly double what it costs to put premium in a gas car, they can't make money.

I give them 5 years.

But so long as it's private money, they can have at it.

[Gistok]

^ I think the point of the article was that Ford is finding some interested folks for the Michigan Central... Center of Mobility campus.

As for getting a smaller sum from the Michigan Strategic Fund. Not sure if they got any Covid money... but the Michigan Strategic Fund gets most of its' money from gas and oil leases on state owned land, and that money goes into a strategic fund for business development in Michigan.

[Richard]

^ so does that meen you will have less and less of a strategy as you get more and more EVs?

Seems like you are looking to put your businesses development out of business by defunding it.

The fund closed out 2023 while spending $250 million,everywhere but COD,so when that day comes how are you going to either squeeze $250 million a year out of EVs,or taxpayers in order to encourage businesses to locate In Michigan and employ Michiganders ?

it’s a $250 million dollar question.

Part of the fund was also used to preserve some historical buildings in other cities and convert them to mixed use and housing,so it’s not really just about business development.

The strategic fund is actually a collection point from multiple sources including federal,they changed the name from MEDC to the strategic fund,before MEDC was just for economic development,now multiple agencies across the board are connected to the parent the Strategic fund historic credits etc.

That change hit the city hard because days before the city went into the bankruptcy,they froze all funding and tax credits in order to implement the change,by default anybody looking to invest in the city at that time was frozen in place at a time when the city needed the investment the most.

It even put Mr Gilbert in a state of limbo for at least 6 months,imagine investing millions and then the next day you do not know what is going to happen from one day to the next,it hurt the city by destabilizing it.

They picked the day to notify and implement 2 days before Christmas,so investors spent the holidays not knowing if they were going to lose everything or it was going to cost millions more in costs while making every project in the city not feasible without the historic tax credits etc.

Strange how it all works,people in the city woke up Christmas Day not even knowing billions in investments was in the wind and the end result would impact the cities future for decades to come.

It was one of those defining moments that make or break city's,I guess they figured sense they were about to throw the city into bankruptcy it was already broken so no harm no fowl.

Lots of people involved in economic development for the state and counties also lost their jobs that day.

[Gistok]

I'm not doing anything Richard... certainly not second guessing the states Department of Natural Resources. You seem to have plenty of armchair expert time for all of that and Econ 101...

Besides Oil and Gas, the state has plenty of other natural resources in metals and rare earths, what with the state being divided into 2 geologic distinctive areas.

[Richard]

It’s not that complicated or even necessary to armchair,the fund gets its money from selling oil and gas,the very thing you are looking to eliminate.

That’s like selling the very thing you despise,but if you no longer are dependent on that resource the money it was generating,is not going to just appear out of thin air,as you are planning for the future,how do you plan to replace it.

My longish post was an example of what happens when you pull the plug and potential impact,you can personally not like it but you cannot change the facts.

So you either have to figure out now how you are going to replace it or just increase taxes when that day comes in order to keep the fund active,it’s because it was all combined into one fund it will have a wide spread impact across the board and not just in business economics.

Those that live in the city depend on that fund for almost every project that happens,if it goes away the city becomes frozen in time.

You should be thinking more about content than personal feelings.