Detroit business news 2022
Although things have begun to cool off a bit, the metro Detroit real estate market is still hot for sellers and frustrating for homebuyers trying to compete with investors. Inventory is still at record lows and the number of people looking to buy remains high. In comparison to other States prices are still attractively low. The 11-county Detroit region is home to more than 300 municipalities and 300,000 businesses, including 11 Fortune 500 companies and numerous educational institutions. Here is some of the latest business news from this week which is influencing the continued demand for Real Estate investment in The Motor City. General Motors GM has proudly been a part of Michigan for over 100 years – since 1908 A few important facts : Over 53,000 employees in Michigan Over $5.8 Billion in taxable wages. 1,985 Suppliers in Michigan in which General Motors spend on average $15.6 Billion with each year. News : General Motors Co. on Tuesday said it made $3.3 billion in net income in the third quarter, up from 2021’s third quarter profits of $2.4 billion despite a tight supply inventory still hindering sales and lessening demand amid economic uncertainty. GM’s revenue was $42 billion in the quarter, up from the $27 billion the company made in the same three months last year. The results beat investor expectations. “This week GM delivered solid 3Q results despite a very difficult supply chain environment and should be digested well by investors,” Wedbush Securities analyst Dan Ives said in a Tuesday note. “Total revenue of $41.9 billion was roughly in-line with the Street while impressively Adjusted EBIT was $4.3 billion vs the Street at $3.7 billion.” Wall Street reacted favourably to the automaker’s earnings report, with GM stock up nearly 2.5% in midmorning trading in New York. The Detroit automaker is still aiming to meet its projected guidance of net income between $9.6 billion and $11.2 billion, and adjusted pre-tax earnings of between $13 billion and $15 billion for the year. For the year so far, GM has made $7.9 billion, down from the $8.3 billion it had this time last year. “We’re delivering on our commitments and affirming our full-year guidance despite a challenging environment because demand continues to be strong for GM products and we are actively managing the headwinds we face,” GM CEO Mary Barra wrote in a letter to shareholders on Tuesday. On a call with media Tuesday, GM Chief Financial Officer Paul Jacobson said the company hasn’t seen “any direct impact on our products” from economic headwinds. GM’s average transaction price was $51,911 in the third quarter, according to Cox Automotive. By comparison, the automaker’s ATP was $40,053 in the third quarter of 2017. Earlier this month, GM reported its U.S. dealers sold 555,580 vehicles in the third quarter, up 24% from last year as inventory levels improved and demand remained strong despite rising interest rates. 2. Magna International, Inc. Magna International Inc. is a Canadian parts manufacturer for automakers. It is one of the largest companies in Canada. Magna has over 158,000 employees in 342 manufacturing operations and 91 product development, engineering and sales centres in 27 countries News : The Michigan Strategic Fund board approved Tuesday a total $10.2 million in state program grants for Magna International Inc. as the automotive supplier seeks to expand its footprint in Michigan and create more than 1,500 jobs. Companies under Magna International, Inc. applied for two new Michigan Business Development Program grants for projects in Highland Park and Shelby Township as well as additional grant funding for its facility in St. Clair, according to the Michigan Economic Development Corporation. “The board’s support of these investments will build on our efforts to position Michigan as a home for Magna and a continued leader in the future of mobility and vehicle electrification,” Quentin Messer Jr., CEO of the MEDC, said Tuesday. Michigan is Magna’s U.S. corporate home. Magna operates 35 facilities in Michigan, making it the state with its largest footprint. The company employs more than 10,000 Michigan residents, officials said. The MSF board approved Tuesday a $2.9 million grant for Magna Seating of America Inc.’s plan to lease a 114,000-square-foot seating facility at 12240 Oakland Blvd. in Highland Park. The project would create 490 jobs and result in a capital investment of up to $3.77 million, according to an MEDC briefing memo. The MSF board also approved a $1.3 million grant for Magna Powertrain of America Inc.’s plan to lease a 200,000-square-foot facility in the Shelby Commerce Centre in Shelby Township. The project would create 159 jobs and a capital investment of up to $96.17 million, according to the MEDC. The board approved for the project a 50% alternative state essential services assessment exemption valued at up to $369,837 for five years for its $81.7 million eligible investment. In St. Clair, the MSF board approved an increase in previously awarded Michigan Business Development Program grant funding from $1.5 million to $7.5 million. Magna Electric Vehicle Structures expects to employ 1,224, up from a previously announced 304 jobs for its facility at 1811 S. Range Road in St. Clair. The project will result in $196.4 million in investment, up from an originally proposed $70.1 million. Also approved Tuesday was a 100% state essential services assessment for Magna Electric Vehicle Structures for up to fifteen years valued at up to $6.3 million for its $287.6 million eligible investment. 3. Detroit sees record cruise ship activity in 2022 Cruise ships docked in Detroit more than 50 times during the 2022 season, a record and more than double the amount of dockings in Detroit in 2019, the Detroit/Wayne County Port Authority and a coalition of Midwest states, cruise lines and others said Friday. The announcement coincided with the final weekend of cruise ships docking in Detroit. Le Bellot, a cruise ship operated by the French cruise operator Ponant, was docked in Detroit on Friday. Ponant cruises in the Great Lakes go to locations such as Toronto, Mackinac Island and Milwaukee
