State Demands Payments on Loan to Self-Driving Auto Test Facility

Michigan is demanding annual payments totaling $1.62 million from the American Center for Mobility, a nonprofit self-driving auto test facility in Ypsilanti Township. The state says the nonprofit must repay a $35 million loan used to build the facility. The American Center for Mobility says it was never intended to repay the state's startup costs.

The conflict comes as Michigan fights to keep its automotive research hubs relevant in a competitive market.

State Sen. Jeff Irwin, D-Ann Arbor, wants the state to forgive the loan or delay debt repayment. He called it a state investment to help cement the auto industry's place in Michigan.

The nonprofit tests robotaxis, automated trucks and high-tech delivery services at its 340-acre test facility.

Financial Pressure Could Jeopardize Critical Infrastructure

Documents show the American Center for Mobility built a $1.59 million surplus last year. That surplus would be wiped out by Michigan's demands for $1.62 million per year in payments on a loan that went into forbearance last year.

Annual payment sought by the state could jeopardize the nonprofit project despite a financial rebound last year.

Last year, documents show it built a $1.59 million surplus, which would be wiped out by Michigan's 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 peaks and valleys.

Glenn Stevens, executive director of MichAuto advocacy group, said the state is in a fierce battle for new mobility jobs. Ford Motor Co. recently detailed how it is expanding its Long Beach, California, development hub for its new universal platform electric vehicles.

State Investment in Mobility Infrastructure

The American Center for Mobility is a 340-acre test facility in Ypsilanti Township. The nonprofit tests robotaxis, automated trucks and high-tech delivery services.

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 worthless if it drives the project out of business.

John Rakolta, a metro Detroit developer, said it sounds like a conundrum for the state, which would probably get criticized for not collecting the loan. Rakolta 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. Its spokesperson, Danielle Emerson, said the contract with the state clearly calls for repayment.

Auto Industry Advocates Say Michigan is Leading the Nation

Auto industry advocates say Michigan is in a fierce battle for new mobility jobs. The ACM is fulfilling its role as a state hub for vehicle connectivity.

Paul Krutko, a founder of the research center and its treasurer, said the center still offers full testing capabilities among the 10 national proving grounds 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.

Krutko, who is also CEO of Ann Arbor SPARK regional economic developers, said the ACM this spring is launching a search for a new CEO as Reuben Sarkar leaves to become CEO of SAE International.

Krutko credited Sarkar for leadership through rapid changes in automotive technology and federal spending, plus fallout from COVID-19.

Revenue and Operations Details

The ACM has built a research ecosystem well beyond its original autonomous test track. Gas technology, hydrogen fuels and EV charging interoperability have all played into that.

Revenue topped $6 million in 2018 and 2022, but dipped to around $2.2 million in 2023 and 2024.

According to the ACM's 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.

Most of the 35,430 square feet of ACM's office space is also leased, with several long-term commitments.

The reach of work on site is broad, ranging from work on underwater drone development to autonomous snow clearing.

Looking Ahead

Krutko said the need for a facility where autonomous solutions can be tested, which was the concept from the very beginning, has sort of come full circle.

Both Krutko and the MEDC's Emerson said conversations continue about the debt. Neither provided details of negotiations.

One factor could involve the University of Michigan's collaboration with the Los Alamos National Laboratory to build a data and research center.

The state awarded U-M $100 million for site development work 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 is ongoing.

The call to repay the $35 million also comes amid a legislative pull-back in subsidy funding.

The state budget deal for 2026 called for about $91 million of cuts to MEDC programs. Some lawmakers continue to call for more.

Despite the million conflict, the MEDC's Emerson said Michigan is prioritizing mobility initiatives, touting the ACM.

MichAuto said 58 percent of US spending takes place in the state.

Michigan is leading the nation in mobility solutions, Emerson said, noting subsidy deals with Torc Robotics and Astemo Americas, along with Michigan's designation by the federal government as a National Range for Deep Uncrewed Aerial Systems Training.

Opportunities are expected to increase, said MichAuto's Stevens.

Automated and connected vehicle technology is really full steam ahead, Stevens said.

The ACM has built a research ecosystem well beyond its original autonomous test track.

Those are all areas where the United States and partner nations need to develop our own technologies and our own supply chains, Stevens said.

It is really, really important for Michigan's competitiveness, Stevens said.