Michigan is demanding repayment of $35 million from a state-backed mobility research center supporters say is critical to keeping autonomous vehicle development in Michigan.
The , a 340-acre test facility in Ypsilanti Township, says annual payment sought by the state could jeopardize the nonprofit project despite a financial rebound last year.
鈥淚t鈥檚 a state investment to help cement the auto industry鈥檚 place in Michigan,鈥� said state Sen. Jeff Irwin, D-Ann Arbor, who wants the state to forgive the loan or delay debt repayment.
鈥淚t makes sense to continue that effort.鈥�
The nonprofit tests robotaxis, automated trucks and high-tech delivery services.
Last year, documents show it built a $1.59 million surplus, which would be wiped out by Michigan鈥檚 demands for $1.62 million per year in payments on a loan that went into forbearance last year.
The conflict comes at a pivotal time for self-driving technology after US automotive research funding went through years of 鈥減eaks and valleys,鈥� said Glenn Stevens, executive director of MichAuto advocacy group.
In all, the state has invested $67 million in the site, a former General Motors facility, and already has forgiven an earlier $15 million loan.
Pushing too hard for payments would make that spending 鈥渨orthless鈥� if it drives the project out of business, said John Rakolta, a metro Detroit developer.
鈥淚t sounds like a conundrum right now for the state, which would probably get criticized for not (collecting) the loan,鈥� said Rakolta, who participated in discussions about the formation of the ACM but is not involved in the project.
Negotiations about the debt are ongoing with the Michigan Economic Development Corp., a quasi-public business development agency. Its spokesperson, Danielle Emerson, said the contract with the state clearly calls for repayment.
鈥榃e鈥檝e proven ourselves鈥�
Auto industry advocates say Michigan is in a for new mobility jobs. Ford Motor Co., for example, how it is expanding its Long Beach, California, development hub for its new
The ACM is fulfilling its role as a state hub for vehicle connectivity, said , a founder of the research center and its treasurer.
Customers and other automakers, and affiliations include the University of Michigan and Michigan Tech.
The center still offers full testing capabilities among the for self-driving cars designated by the Obama administration in 2016. The others are now more limited in scope, giving ACM national prominence for what it offers as advanced research takes off, said Krutko, who is also CEO of Ann Arbor SPARK regional economic developers.
The ACM this spring also is launching a search for a new CEO as Reuben Sarkar leaves to become CEO of SAE International, a global mobility organization based near Pittsburgh.
Krutko credited Sarkar for leadership through rapid changes in automotive technology and federal spending, plus fallout from COVID-19.
鈥橶e鈥檙e hopeful that we have proven ourselves and that we can figure out a way that the state鈥檚 investment continues to be made,鈥� Krutko said.
He said the ACM was never intended to make money and 鈥渨as always intended to be a nonprofit, open source environment for the industry to use,鈥� Krutko said.
History
The ACM grew out of an effort to replace lost jobs from the after GM gave it up during its bankruptcy and closed it afterwards.
The factory 鈥� once known as the 鈥� was among the most contaminated ex-GM properties to move into the RACER Trust.
Krutko was among those who urged the development of an automotive test site, along with Gov. Rick Snyder and groups including Business Leaders for Michigan.
The Michigan Strategic Fund, the public funding arm of the MEDC, has invested $35 million since 2016 to 鈥渃omplete the purchase of land, facilitate final design, construction costs and operations鈥� according to documents obtained by Bridge through a public records request.
Revenue topped $6 million in 2018 and 2022, but dipped to around $2.2 million in 2023 and 2024. According to the ACM鈥檚 2025 audit, revenue bounced up to about $2.5 million.
The test track was booked for 229 days in 2025, with researchers working in a range of available environments: off-road, a downtown-like area, a highway loop.
Most of the 35,430 square feet of ACM鈥檚 office space is also leased, with several long-term commitments, the group said.
And the reach of work on site is broad, ranging from work on to autonomous
鈥淭he need for a facility where autonomous solutions can be tested, which was the concept from the very beginning, has sort of come full circle,鈥� Krutko said.
Looking ahead
Both Krutko and the MEDC鈥檚 Emerson say conversations continue about the debt. Neither provided details of negotiations.
One factor could involve the University of Michigan鈥檚 collaboration with the Los Alamos National Laboratory to build a data and research center, said Irwin, the state senator.
The state awarded U-M in December 2024.
The state had pinpointed the ACM campus as a site for it in 2023 before U-M bought different land in Ypsilanti Township for the controversial project. Backlash prompted U-M to revisit the ACM campus, an effort that鈥檚 ongoing.
The call to repay the $35 million also comes amid a in subsidy funding. Bridge analysis has reported on how cash-for-jobs incentives have led to many low-paying deals. And during Gov. Gretchen Whitmer鈥檚 administration, billions have been promised with a fraction of the jobs delivered.
The state budget deal for 2026 called for about to MEDC programs; some lawmakers
Despite the million conflict, the MEDC鈥檚 Emerson says Michigan is prioritizing mobility initiatives, MichAuto says 58% of US spending takes place in the state.
鈥淢ichigan is leading the nation in mobility solutions,鈥� Emerson said, noting subsidy deals with and along with as a National Range for Deep Uncrewed Aerial Systems Training.
Opportunities are expected to increase, said MichAuto鈥檚 Stevens, also an ACM board member.
鈥淎utomated and connected vehicle technology is really full steam ahead,鈥� said Stevens.
The ACM has built a research ecosystem well beyond its original autonomous test track, Krutko said. Gas technology, hydrogen fuels and EV charging interoperability all have played into that.
Those are all areas where the United States and partner nations need to develop 鈥渙ur own technologies and our own supply chains,鈥� Stevens said.
鈥淚t鈥檚 really, really important for Michigan鈥檚 competitiveness.鈥�
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