Crain's Detroit Business, Jan. 8, 2018 issue by Crain's Detroit Business

Welcome to Crain’s Detroit Membership.

See column, Page 6

JANUARY 8 - 14, 2018 | crainsdetroit.com SPECIAL REPORT

AUTO SUPPLIERS

NEWSMAKERS OF THE YEAR Crain’s 2017 Newmakers of the Year all made headlines in some of the most significant stories of the year — most notably, the unfolding, accelerating comeback of Detroit and other major Michigan cities. It was the year of hunting for big businesses like Amazon and Foxconn. A year of groundbreakings on some of the most transformative development projects in a generation. A year of bold moves to make

Visteon CEO steers toward autonomous vehicles

things better in early education, health care — even for the Detroit Lions’ Super Bowl chances. Meet this year’s Newsmakers: Matt Simoncini; Mike Duggan; Martha Ford; Dan Gilbert; Vinnie Johnson; Wright Lassiter III; Rip Rapson and La June Montgomery Tabron; Dug Song; Art Van Elslander; and Deirdre Waterman. Their stories start here and continue on Page 9.

By Dustin Walsh dwalsh@crain.com

Matt Simoncini

CEO, Lear Corp. By Dustin Walsh dwalsh@crain.com

Matt Simoncini doesn’t do many things quietly. Even as he enters retirement — after a career of resounding professional and philanthropic accomplishments — he’s not planning to stop talking about the opportunity he sees in Detroit. After 11 years in the C-suite at Southfield-based Lear Corp. — five as its CFO and six as its CEO — Simoncini, 56, will begin his second act March 1 as a family man and crusader for Detroit’s future. The Detroit-born executive over the course of a decade has turned Lear around following a recession-induced bankruptcy, moved a cutting-edge outpost of the company into downtown Detroit, and has been a major force in philanthropic circles.

Matt Simoncini, Lear Corp. president and CEO, is Crain’s choice for top Newsmaker of the Year.

SEE SIMONCINI, PAGE 28

DUSTIN WALSH/CRAIN’S DETROIT BUSINESS

First-ever ‘Readers’ Choice’ award announced So now you know Crain’s Detroit Business’ choices for the top 10 newsmakers of 2017. And on Feb. 8, you’ll be able to hear from our choice for the top newsmaker, outgoing Lear Corp. CEO Matt Simoncini, at one of our signature live events. crainsdetroit.com

But our opinion isn’t as important as yours.

Who had the greatest impact?

For the first time ever, we’re asking our readers to choose. Who do you think was the top newsmaker of 2017?

Who do you think is deserving of recognition from the Detroit business community?

Who made the most news?

Those are the questions we asked

Vol. 34 No. 1

$5 a copy. $169 a year.

Auto show pulls in nonautomotive exhibitors Page 3

ourselves. Please let us know your answer: Who should win the first-ever “Readers’ Choice” award? See Page 21 for more details on voting and for the Feb. 8 Newsmaker event.

FOCUS

NEWSPAPER

O STATE OF THE AUT

SEE VISTEON, PAGE 28

INSIDE

2018 // J A N U A R Y 8 , OIT BUSINESS CRAIN’S DETR

Since spinning off from Ford Motor Co. in 2000, Visteon Corp. has been in a continual state of identity crisis. The supplier stumbled through board turmoil, bankruptcy, multiple CEOs and, over time, a drastic paring-down of its businesses. CEO Sachin Lawande took over the top executive spot in mid-2015 and went to work, firing the company’s research and development team in early 2016 and going as far as sitting in on interviews with entry-level software engineers. Now, Lawande Need is betting the Van to know Buren Town-  Visteon takes ship-based sup- aim at autonomy plier’s future, and  CEO Sachin possibly his ca- Lawande focuses reer, on a single on unifying ‘brain’ vision. of the vehicle At this week’s Consumer Elec-  Could provide tronics Show in focused identity Las Vegas, Visteon for supplier is unveiling its DriveCore platform, a sort of central command for electronics and software for autonomous cars known as a “domain controller.” The platform is an extension of its SmartCore platform, which similarly centralizes the software and hardware control electronics, but for cockpit systems, such as infotainment, HVAC and instrument clusters. Drive Core connects Visteon’s electronics and hardware components to the growing autonomous vehicle market, an area from which it had been glaringly absent. Visteon is shipping its first SmartCore systems to Dongfeng Motor Co. Ltd. early this year. DriveCore, however, is outside of Visteon’s interiors scope. The supplier largely missed capitalizing on the contract-rich surge to advanced driver assistance systems, such as emergency braking and lane assistance, Sachin admits.

SUPPLY INDUSTR

State of the Suppliers BLOOMBERG

BLOOMBERG

<< Big risks, big opportunities as the ways we travel the world are poised to change forever. Page 20 A chat with ACM’s John Maddox. Page 22

BLOOMBERG AUTOMOTIVE NEWS

to the from top left) possible changes Self-driving cars, (clockwise in 2018. automotive supply industry

North American Free Trade

Agreement, electric vehicles

and companies such as

Delphi splitting apart are

some of the issues facing

tion Dealing with disrup tory uncertainty, sliding sales Auto suppliers grapple with By Dustin Walsh dwalsh@crain.com

inToday’s automotive supply l dustry is facing rapid technologica on disruption, uncertain outcomes fuel econregulations like trade and autoomy standards, and sliding historical motive sales from recent peaks. news for But it’s not all bad indominant Southeast Michigan’s are expectdustry. Federal tax cuts and the ed to increase cash flow, continglobal automotive market ues to grow. 2018 will Experts, however, say point for the serve as an inflection will industry and while disruption ccessful businesses,

technology changes, regula

Need to know

is facing Automotive supply industry technological disruption economy Trade regulations and fuel standards uncertain to Federal tax cuts are expected increase cash flow

recent years mendous pressure in now to keep up with production, with keep up the pressures will be to change.” elecThe big disruptor is vehicle a larger trification, which is playing autonomous role in the arms race to cars. diPaul Eichenberg, managing l Eichen-

don’t unEichenberg said. “Some this derstand how big of a situation strategies is and how different their

must be.” has Electric vehicle adoption U.S., in the been relatively stagnant by fedbut is being driven globally the internal eral initiatives to drop September, combustion engine. In ban gasChina announced it would the fuin oline and diesel engines and France, ture — joining the U.K. those enwho have pledged to ban gines by 2040. By default, domestic automakers, global platwho have been aligning more forms for years, will become Southeast and more reliant on a groundMichigan suppliers with ing in electrification.

the

see high growth like com- ogies will never The industry will see more decades ago. Those days Eichenberg they did that’s fine for certain panies splitting apart, Inc. and are over and but not everyone.” predicts. Sweden’s Autoliv both an- companies, given rise New Jersey’s Honeywell Electrification has also in recent conglomerates, nounced plans to split Ger- to Asia’s battery months. Eichenberg believes op- such as Korea’s Samsung Group which many’s Continental AG, Corp. business and LG of the enerates its North American LG supplies 56 percent Valeo in Auburn Hills, and France’sAmeri- tire component content on General all-electric Chevrolet SA, which operates its North are the Motors Co.’s packs, battery the can headquarters in Troy, supplies will split Bolt. LG archinext major suppliers that the display unit, the electrical into separate entities. to com- tecture, etc. competiBoth suppliers declined “Scale is the one major that Aucontypically these ment. He also speculates with tive advantage companies bring burn Hills-based BorgWarner, to power- sumer electronic “This said. Eichenberg most of its business tied table,” make a tran- to the seeing several partnertrain, will be forced to technology is why we’re and automakers sition, likely through ships between acquisitions. asking these companies.” “These companies are otor Corp. and Panason-

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 8 , 2 0 1 8

MICHIGAN BRIEFS

INSIDE

From staff and wire reports. Find the full stories at crainsdetroit.com

Renewable energy residential, business projects up in Michigan Private, non-utility-owned renewable energy production led by residential and business solar electricity generation grew by 28 percent in 2016 and was expected to continue at that pace in 2017, the Michigan Public Service Commission said in a new report. It is unclear whether that growth in residential, commercial and industry solar projects will continue in 2018, given Michigan energy legislation approved in 2016 that has eliminated the popular net metering program for future customers. Net metering allows customers with solar panels or wind turbines to receive a credit for excess electricity they produce. Michigan’s new energy law requires the MPSC to establish a distributed generation program and tariff to replace the current net metering program. Existing net metering customers can continue to participate in the program for 10 years. The MPSC is expected to set a tariff later this year in a hearing. Liesl Clark, co-founder of Lakes Energy and president of the Michigan Energy Innovation Business Council, told Crain’s that the success

of net metering, better renewable energy technology and lower solar costs have stimulated solar and wind in Michigan and elsewhere. Clark said Congress and the Trump administration have introduced uncertainties for solar in 2018 because of the phase-out of a solar tax credit and an ongoing trade case that could increase solar costs. But pending Michigan regulations on a distributed generation tariff could also muddy the waters for solar. In 2016, 2,582 residential, commercial and industrial customers participated in Michigan’s net metering program, up 427 from 2015, said the MPSC’s net metering and solar program report. Total capacity of net metering installations was approximately 21,888 kilowatts, an increase of 28 percent from 2015. Solar accounts for less than 2 percent of total electricity production in the state. By the end of 2017, the MPSC estimates the total amount of solar installed in Michigan will increase to 120,530 KW, more than double the amount of 57,999 kKW in 2016 and 36,118 KW in 2015.

New map helps streamline poverty data

A new study by the University of Michigan aims to offer a comprehensive look at poverty across Michigan by compiling data and ordering it in

KEITH CRAIN

OPINION

PEOPLE RON FOURNIER

7 24 4

RUMBLINGS

WEEK ON THE WEB

down and think of this all the time like we do,” Shaefer said. The group plans to take the map to Lansing to educate lawmakers and other officials on the issue.

Minimum wage increases 35 cents

UNIVERSITY OF MICHIGAN

The University of Michigan’s Poverty Solutions group created an interactive map to help users easily access and understand data on poverty Michigan.

an easy-to-read fashion. The university's Poverty Solutions, a multidisciplinary initiative formed in October 2016, recently published the online map to help residents and local leaders examine the issue. “It’s a way to take all this data that's publicly available but hard to access and understand, and make it easier to digest,” said Luke Shaefer, director of Poverty Solutions and a professor at the university. The map allows users to section

out each county in the state and see where it ranks in median income, poverty level, life expectancy and other categories. Starting over the summer, Shaefer and a team of five people, including graduate and undergraduate students, scoured the internet and other records for relevant data. Cost was minimal, Shaefer said, but the manhours were tedious. “One of our guiding principles is to try to engage people who don’t sit

In a special section Feb. 12, Crain Content Studio, the custom publishing division of Crain’s Detroit Business, will name Michigan’s 2018 Notable Women in Manufacturing. In that section, we’ll profile the females in the manufacturing industry who are considered leaders in their workplaces and in the community, as nominated by clients or colleagues.

WOMEN N

DEALS & DETAILS

OTHER VOICES

Notable Women in Manufacturing secure patents and find efficiencies in production. They are researchers and inventors; they collaborate and mentor.

BL A T O

CLASSIFIEDS

IN MANUF ACTURIN G POWERED BY

Submit your nominations today by visiting crainsdetroit.com/nominate

HURRY! NOMINATIONS CLOSE JAN. 12

Michigan’s minimum hourly wage increased 35 cents to $9.25, effective Jan. 1. The bump is the final scheduled increase provided for in the Workforce Opportunity Wage Act of 2014, according to the Michigan Department of Licensing and Regulatory Affairs. The minimum hourly wage rate was $8.15 as of Sept. 1, 2014. It increased to $8.50 on Jan. 1, 2016, and to $8.90 on Jan. 1, 2017. Several groups have advocated to increase the state’s minimum wage, including an advocate organization making moves to raise it to $12 by 2022.

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 8 , 2 0 1 8

WORKFORCE

Document reveals details of talent ‘Marshall plan’ By Chad Livengood clivengood@crain.com

The “Marshall Plan for Talent” Gov. Rick Snyder plans to begin pitching to lawmakers next month is expected to include a new state scholarship for computer science higher education, apprenticeships for information technology jobs and piloting a child care service for IT workers in Detroit and the suburbs, Crain’s has learned. Approximately $95 million of the $120 million in talent-development Snyder pledged to support in Detroit's

Need to know

JJDetails of talent plan revealed JJInvolves scholarships, apprenticeships, child care JJAddresses growing shortage of IT workers

bid for Amazon’s second headquarters was detailed in a eight-page plan the governor's office sent city officials in October as part of the Amazon bid. Crain’s obtained the document from the City of Detroit through a

Freedom of Information Act request and confirmed with Snyder administration sources that the specific programs pitched to Amazon will be part of the governor’s overarching proposal to legislators for addressing a growing shortage of IT workers. The so-called “Marshall Plan for Talent” calls for: J $15 million for a new Michigan IT & Computer Science Promise scholarship to provide up to $750 per year for two years in “last dollar tuition assistance” for students enrolled in a com-

puter science or IT credential program. J $15 million for capital construction and operating expenses of four child care facilities for children of IT workers, with a main facility being located in downtown Detroit and the other three “in surrounding communities.” The state funding would be used to subsidize the cost of child care for IT workers. J $15 million in curriculum development grants for colleges and universities to “position Michigan as a leader

DEVELOPMENT

in talent development for the IT industry.” J $15 million in one-time grants for high schools, community colleges and universities for capital costs associated with adding more computer science and IT classes. J $10 million for creation of IT job apprenticeship programs that specifically target veterans, women, racial minorities as well as underemployed workers and structurally unemployed individuals. SEE TALENT, PAGE 26

TRANSPORTATION

Auto show to take turn toward tech By Dustin Walsh dwalsh@crain.com

As the automotive industry becomes an advanced technology industry, so too must the largest auto show in North America. The 2018 North American International Auto Show at Cobo Center will feature more companies that wouldn’t seem very automotive to the average attendee — a sharp contrast to years past and a sign of the melding of consumer electronics, software and cars. The show will feature product unveilings, panel discussions and press previews from the generally not-Motor City businesses of Intel Corp.,

North American International Auto Show, Cobo Center The Gallery event: Jan. 13; tickets, $250. Press preview: Jan. 14-16; accredited media only. Como’s restaurant and bar in downtown Ferndale closed in the fall over health department violations.

CRAIN’S DETROIT BUSINESS

Households: 7,880

A project at Como’s site could change the face of Ferndale

Median household income: $57,567

By Kirk Pinho

Como’s property draw ONE-MILE RADIUS Population: 16,209

THREE-MILE RADIUS Population: 145,688 Households: 62,379 Median household income: $50,459 FIVE-MILE RADIUS Population: 391,663 Households: 161,903 Median household income: $44,353 Source: CoStar Group Inc.

kpinho@crain.com

A high-profile corner of downtown Ferndale real estate may soon turn over a new leaf as it has been put on the market for $4 million. Some visions for the site could change the face of downtown Ferndale. Development experts widely believe the Como’s restaurant site should be turned into a multistory mixed-use building, but at least one observer believes the small site size and other factors may hinder that prospect.

The Italian-American pizzeria and bar shuttered for good late last year amid a string of Oakland County Health Department violations that had forced its closure more than once. The restaurant, which opened in 1961, has also racked up nearly $1 million in state and federal tax liens since 2000, public records in Oakland County show; at least $300,000 have been paid, although precisely how much is not known. George Grego, the restaurant’s manager and

Automobili-D preview: Jan. 14-21. Industry preview: Jan. 17-18; tickets available to automotive professionals, $110. Charity preview: Jan. 19; tickets, $400. Public show: Jan. 20-28; tickets, $14 for adults, $7 for children and seniors.

son of owner Antoinette Grego, said he was unaware of the liens and purchase offers received since it closed. A source told Crain’s last week at least one offer around $5 million had been turned down. The restaurant’s closure leaves a gaping hole in Ferndale’s downtown fabric, said Gaal Karp, a developer working with Ed Siegel on the Ferndalehaus mixed-use project to the west on the site of a former grocery store.

BlackBerry, political journalism website Politico and others. “We’re seeing a much larger contingent of big tech companies for this show,” said Max Muncey, public relations manager for the North American International Auto Show and the Detroit Automobile Dealers Association. “This is really the first time we’re showcasing the entire automotive ecosystem — from startups to venture capital to suppliers to automakers — that makes this whole industry run.

SEE COMO’S, PAGE 29

SEE SHOW, PAGE 26

MUST READS OF THE WEEK What Keeps Andra Rush up at night?

Other Voices: Skeptics miss boat on bridge

TutorMate halfway to goal of 1,000 tutors

Build Institute goes out on its own

Ron Fournier chats with the trucking and manfacturing titan. Page 4

Big infrastructure project like Howe Bridge pay off for generations, Andrew Doctoroff writes. Page 7

Reading program working with Detroit schools draws help from a who’s who of Detroit’s big companies. Page 17

Entrepreneurial training program becomes an independent nonprofit, emerges from downtown partnership. Page 18

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 8 , 2 0 1 8

WHAT KEEPS YOU UP AT NIGHT?

Andra Rush: From nurse to trucking company founder

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Fresh out of nursing school, Andra Rush asked her first boss, “How much do I make?” The woman said, “$9.25 an hour.” “You’ve got to be kidding me,” Rush replied, assuming nurses would be paid more. “Who runs this place?” Sitting in a living room-sized office at her company headquarters just before Christmas, Rush chuckled while recounting the 30-year-old memory. The founder, chair and CEO of Rush Group of Companies said she demandRON ed to see the company’s organizational chart, and then FOURNIER asked how much the CEO and COO were paid. The answer was significantly more than $9.25 an hour. “That’s when I said, ‘I’ve got to go to business school and become a CEO,’ ” Rush told me with smile. While in business school, she accepted an internship with a freight company and had an epiphany: Almost everything is transported by truck, and the auto industry needed to work with minority-owned companies to comply with new federal diversity regulations. Rush, a Native American descended from the Mohawk tribe, borrowed $5,000 from her parents, invested $3,000 of her own savings, and used her credit cards to launch Rush Trucking in 1984 with one van and two pickup trucks. For years, she ran the fledgling company while working as a full-time nurse; she never finished business school. Today, Rush Trucking transports parts for Fortune 50 companies with 1,100 tractor-trailers. In 2001, Rush launched Dakkota Integrated Systems, providing assembly and sequencing of automotive interiors to original equipment manufacturers, including automobile companies. President Barack Obama praised Rush in his 2014 State of the Union Address for creating hundreds of manufacturing jobs in Detroit with the June 2012 opening of Detroit Manufacturing Systems. DMS, with $1 billion in revenue and more than 800 local employees, and ranked third on Crain’s list of largest minority-owned businesses last year. (Our conversation was edited for length and context.) What keeps you awake at night?

Actually I sleep really, really well. It is what wakes me up in the morning that you want to know.

OK, what wakes you up in the morning with butterflies in your stomach?

It’s usually when there’s a big product launch or a big program that we have worked on for almost two years. It can be nerve-wracking. Tell me about the Iroquois philosophy of Seven Generations. I know it’s meaningful to you.

It’s (part of the) Native American beliefs system: You should make a decision based upon what the effect will be on seven generations from now. Seven generations is a long time. Is that literally a philosophy you apply to your business?

Crain’s 20 in their Twenties celebrates young professionals who are making waves within their company, have shown success or originality as an entrepreneur or have made a positive and noteworthy impact in their community.

CRAIN’S IN THEIR

TWENTIES

Submit your nomination at crainsdetroit.com/nominate

More to life. It’s how you approach what you are going to do and how you’re going to do it and being thoughtful and meaningful and purposeful. I think I have always been brought up thinking about others and paying it forward, and it could be a bit selfish because it makes me feel good inside, but it’s for a purpose bigger than yourself. Could some or all those attributes be applied to a business?

Yes, absolutely. How so?

When (you) look for opportunities in growing a business, you have to say “no” more than you say “yes,” and there are conditions to it; maybe you don’t have enough talent or maybe

you don’t believe in that product or that opportunity. For me, I believe that transportation or mobility (is a means for) everybody to explore the world, so (my company) can make the world a better place. As a CEO, do you pay forward?

Yes.

How so?

I don’t really like to talk about it much, but I try to be very charitable where I can and make differences in the communities I live and work in. One of the ways I think we do it well is we prepay tuition and books for all of our employees to study whatever they would like. (Up to $5,600 a semester.) Everybody who works for you gets the opportunity to get college tuition free?

Everybody. The agreement is that you need to pass your class. We’ve graduated teachers, accountants and nurses. How many of your employees do you think have gone to college on your dime?

Hundreds.

Where were you born?

The Rush File Education: U-M Ann Arbor bachelor’s degree in nursing, plus completion of many executive courses for business leaders. Mentor: Wow, I have had so many mentors. Throughout my career I have been privileged to have many mentors, personally, professionally and educationally, and most significant are my parents who believed in me when others did not. Biggest achievement: Personally, raising three wonderful boys to be positive, kind, giving and caring young men. In business, making a positive difference in underserved communities with meaningful jobs and careers. First job: At age 10, worked as a subcontractor for a paperboy (girls couldn’t hold the job readily). Officially became a papergirl at 12. Life goal: To leave the world a better place.

LARRY PEPLIN FOR CRAIN’S

“I wake up thinking about how we can be relevant, meaningful and prepared for the next opportunity or the next technological breakthrough.” Your father?

He painted cars. He worked at a bump shop for Ford and then got into General Motors for the retirement, and worked in design for 20 years at GM. You told me your original plan in business was to make a lot of money and retire at 27. Why didn’t you retire?

I love what I do, and there is a lot of responsibility. I wake up thinking about how we can be relevant, meaningful and prepared for the next opportunity or the next technological breakthrough.

Livonia.

What did you parents do?

My mom was a homemaker and went back to school when she was 35 to be a nurse.

Ron Fournier is publisher and editor of Crain’s Detroit Business. Catch his take on business at 6:10 a.m. Mondays on the Paul W. Smith show on WJR AM 760.

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C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 8 , 2 0 1 8

OPINION Regional public transit Welcome to Crain’s Membership in Southeast Michigan J is but a dream COMMENTARY

ournalism doesn’t have a financial problem. Journalism has a trust and connection problem. People don’t trust what they read and they don’t feel a part of the news-making process. They feel disconnected from media companies — mocked, misunderstood and exploited. We’re determined not to let that happen at Crain’s. We started something new in March by creating the Inner Circle, a community of readers who value Crain’s enough to help reshape it. More than 600 of you joined, three times more than we hoped in our wildest dreams. In polls and focus groups, you told us what you need from a media company. We heard you. Now we’ll deliver. Today we launch the Crain’s Detroit Membership Program that gives you full access to our award-winning journalism and journalists, plus the business services extras you asked for — and more. Starting today, every Crain’s subscriber will be converted to Membership, because the old model is too transactional. You’re now a member of the Crain's community — our family. You’ve long trusted Crain’s to be a fair and credible source of business news, and now, with the new access and transparency that comes with Membership, we will be directly accountable to you. The program includes three tiers of Membership benefits:

You invest in our journalism and we invest in you.

RON FOURNIER Publisher and Editor

J Classic Membership is the lowest price and still gives you more value: access to all print and digital editions, Members-only webinars, and discounts on events and Crain’s List data. J Enhanced Membership is our best deal. For a few more dollars, you get everything in the “Classic” tier plus free data services, discounts on other Crain’s publications, and a growing roster of exclusive “Insider” newsletters written by our top reporters. Think of these new “Insider” emails as exclusive tip sheets: behind-the-scenes color and actionable information you can get only from the likes of Kirk Pinho, Chad Livengood and Sherri Welch. J Premier Membership is for our most elite Members, who want everything in the first two tiers plus VIP treatment at events (including premier seating and lead-generation lists) and exclusive access to Crain’s reporters and editors. For corporate Members, we’re offering site licenses as well as concierge marketing services, including native advertising, business reports

and brochures, research, and other custom content. These are some of our non-journalism offerings, walled off from our independent newsroom. I know what you’re thinking: Will this cost me more? The answer is: not right away. If you’re currently an individual subscriber, you will automatically get converted to Membership at your current rate. When it’s time to renew, you may notice a slight increase. I’ll ask you then to consider the extra value you’re getting from Membership. I think you’ll stick with us. A note about rates: Crain’s Detroit Business has not raised its subscription price in nearly a decade, which means our budgets have not kept pace with inflation at a time when they’re already under assault by the internet. I believe there is no better or fairer news organization in this market, nor a better deal, and that the business community of metro Detroit appreciates a good value. With Membership, you invest in our journalism and we invest in you. That’s how partnerships work. Let me know what you think. Ron Fournier is publisher and editor of Crain’s Detroit Business. You can learn more about Crain’s Membership by visiting crainsdetroit.com/ Membership or email Ron at rfournier@crain.com.

It is a week to be proud A

ll too often we forget that we are still the Motor Capital of the World. Maybe not the capital of music these days or anything else, but we are when it comes to cars. A couple of times a year, we publicly celebrate this for all the world to see. As a prelude to summer, only a week after the Indianapolis 500, we combine race cars and beautiful Belle Isle for a weekend of racing. Unique to Detroit are two Grand Prix races in one weekend. Roger Penske has promoted the racing festival, which brings fans from all over the Midwest to our city. It certainly boasts the best venue on the racing calendar, with a view unlike any other. It is a great event that pumps millions into our economy every year. But the granddaddy of our auto events starts this weekend: the North American International Auto Show. It amounts to hosting a Super Bowl every single year, bringing into our community hundreds of millions of dollars and more than 5,000 journalists from around the world. The swiftly changing auto business will give those journalists

KEITH CRAIN Editor-in-chief

The granddaddy of our auto events starts this weekend: the North American International Auto Show. It amounts to a Super Bowl every single year, bringing into our community hundreds of millions of dollars. plenty of news at the show. We're seeing the rise of the SUV and the pickup truck at the expense of the family sedan. At the show, a lot of SUV models will be intro-

duced. And just in case you thought that people don’t like performance, there will be plenty of supercars for folks who have a hankering to go 200 miles an hour. But the real news is this: the electrification of the automobile. There will be plenty of electric cars on display. Though consumers have not yet expressed any great interest in these vehicles, governments around the world are starting to talk about eventually outlawing internal combustion engines. They probably will not see much success until they figure out another source for electricity other than a battery, which simply does not hold enough energy and takes too long to recharge. Not disruptive enough? Look out for the autonomous car. It is still a decade away, but is being tested on public roads all over the nation and the world. They seem to be coming, whether we want them or not. For nearly 40 years, this international show has been a jewel of Detroit’s renaissance. The world gets to see that we are one of a kind. Be nice to our visitors and enjoy the show.

oters rejected the Southeast Michigan Regional Transit Authority ballot measure in late 2016 by 50.5 percent to 49.5 percent. Washtenaw and Wayne counties voted for the transit proposal, while Macomb and Oakland counties voted against it. Instead of moving swiftly to try again, our leaders who oppose mass transit tell us to be patient and wait for a future perfect transit plan they can support. And so nothing changes. We live in a region with enormous transit gaps and limited transit service during non-peak periods. We take pride in our world-class airport — without quality public transit connections to make it easily accessible to key cities in our region. And we continue to watch helplessly as our talented college graduates leave us for cities like Chicago that offer the quality of life they seek, which certainly includes mass transit. Since we live in the center of the automotive universe, Southeast Michiganders rightly share a sense of wonder and pride in the technological innovations that are taking shape in our region in the name of mobility. Yet, we will fail to reap the full benefits of this super-charged era of mobility unless we get serious and finally create a quality public transit system that’s truly regional. Properly conceived, public transit is designed to provide mobility to the broadest cross section of people in our community, regardless of income, physical ability and stage of life. No other mobility-related technology or strategy currently under development will offer what public transit can offer. Public transit routes often venture into neighborhoods where many rideshare drivers refuse to go. And public transit is affordable enough to use every day. Compare that to taking an Uber to travel between Detroit and Southfield, which can cost $17 each way. Public transit serves people who pay cash, because they have no credit or debit cards or prefer not to use them. Even drivers experience improved mobility because of the reduction in congestion. The Regional Transit Master Plan was conceived to address the gaps and to bridge the transit divide by providing affordable access to jobs, stimulating economic development and improving our overall quality of life, while connecting the four-county region. Features of the plan included increased frequency along all major routes, improved transit services to employment zones, more direct transit services from the city to the suburbs, cross-county routes in all directions, enhanced commuter service, more services for people with disabilities and senior citizens, direct airport routes from all four counties and commuter rail service from Ann

OTHER VOICES Michael Ford

Amazon and its 50,000 job openings. But, for all our strengths, access to mass transit is certainly not one of them. Arbor to Detroit. Other amenities included real-time route information, universal fare cards, enhanced security, brighter and better lighting, and improved shelter facilities. Still, for all its many practical and egalitarian benefits, public transit is grossly underfunded in Michigan in contrast to other similar metro areas. Worst of all, metro Detroit is the only remaining major U.S. city without regional transit services. Now and then, we jolt awake and pretend to face this uncomfortable reality. Attempting to entice Amazon to select Detroit as the site for its second North American headquarters was just such a moment. Our region has a lot to offer Amazon and its 50,000 job openings. But, for all our strengths, access to mass transit is certainly not one of them. And it’s the one thing that will keep us from being viewed as a serious contender. Once the Amazon bid was submitted, we once again lulled ourselves to sleep, dreaming about the shiny new cars of the future that will drive or park themselves. Meanwhile, thousands of people remain trapped in their neighborhoods, unable to get to good jobs just 20 miles away in the suburbs. And companies across the region are unable to find the talent they need, in part because prospective employees find car ownership unaffordable or driving to work unpleasant. Yes, we have entered a new era of mobility. We need to decide whether we believe mobility will be a limited resource reserved only for those who can afford it. Or whether mobility is a public good that all of us deserve. If we believe in the latter, the time is now to press for a quality and effective regional public transit system, for us all. Michael Ford is the former CEO of the Southeast Michigan Regional Transit Authority. He currently serves as a transit consultant for municipalities in the U.S. and Canada.

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 8 , 2 0 1 8

Skeptics are missing big picture in opposing Howe bridge

he Erie Canal had its fair share of critics, including legislators who derided it as a “big ditch.” That was in 1817. History proves opponents of this singular infrastructure project were myopic, blind to its transformational economic benefits. As one eminent historian put it, thanks to the Erie Canal, “[j]obs multiplied” and New York redrew “the economic map of the United States and put itself at the center.” Two hundred years later, groundbreaking on another once-in-a-generation public works project, the Gordie Howe International Bridge, approaches. As with the Erie Canal, there are skeptics committed to stopping progress in its tracks. Opponents have over the years trotted out specious arguments to kill the project. They have claimed its underlying framework agreement is illegal. But two courts have emphatically rejected this contention. They also assert, falsely, that a new bridge will expose Michigan taxpayers to too much risk; Canada is generously financing the entire project. Then, there are critics who say the private sector alone should assume responsibility for vital infrastructure assets, including international crossings. However, ensuring existence of physical structures needed for economic growth is a core governmental function. Abraham Lincoln’s Republican Party conceived the transcontinental railroad. Champions of the status quo seize on snapshots in time to claim border crossing traffic has recently decreased. Beware any assertion based solely on statistics not vetted by objective experts. Caution is particularly warranted when it comes to arguments that are: grounded in just a few years of data; ignore projections that border traffic will increase over the next several decades; and disregard visible proof that, every day, long queues of semi-trailers idle while waiting to cross the Ambassador Bridge. Skeptics who focus on short-term traffic volumes miss the big picture. Fluctuations in traffic counts have done nothing to shake Canada’s and Michigan’s commitment to the Gordie Howe International Bridge, which was conceived to strengthen the economic security of future generations. Many reasons for building the Gordie Howe International Bridge have nothing to do with traffic volume. Detroit and Windsor flank a vital international trade corridor through which 25 percent of all United States-Canadian commerce passes. Our regional economy depends on reliable Detroit River crossings. Yet the Ambassador Bridge is the sole commercial span crossing the Detroit River. It is 88 years old. Windsor streets have closed due to slabs of concrete falling from the bridge. Canadian officials concluded crumbling railings “pose [a] risk to public safety.” The Gordie Howe International Bridge will thus provide desperately needed “redundancy.” Two bridges in different locations will protect us from structural damage that may be caused by time or terrorism and keep traffic moving during incidents or technology failures. With the new bridge, we will — to borrow from Ulysses S. Grant — no longer risk “ev-

OTHER VOICES Andrew Doctoroff

erything upon the cast of a single die.” Furthermore, the opening of the Gordie Howe International Bridge will instantly fatten Michigan’s infrastructure asset portfolio, strengthening its supply chain. Economic op-

portunities — like the creation of an internationally competitive logistics hub — will boldly announce themselves. The project’s highway-to-highway connectivity and state-of-the-art ports of entry will help create a “seamless border” catering to the needs of today’s manufacturers. Progress on the bridge, which will generate thousands of jobs, is striking: Efforts to procure the private-sector partner continue; Michigan has obtained control of 93 percent of the 636 parcels in the project’s Detroit footprint; utilities are being relocated as part of $100 million in preparatory activities under-

The project’s highway-to-highway connectivity and state-of-the-art ports of entry will help create a “seamless border.” way in Michigan. This project also includes a robust community benefits plan. Every day, project partners solve problems and forge ahead together — demonstrating we can still accomplish great things. This year, bridge construction will begin; over time,

two towers as tall as the Renaissance Center will rise from the banks of the Detroit River. Meanwhile, the hectoring of naysayers with vested interests will continue. But those closest to the project, as always, brim with optimism. This bridge will add to an ever-growing list of achievements that demonstrate the economic resurgence of Detroit, the state of Michigan and Canada, our most important trading partner. Andrew Doctoroff is senior special projects manager to Gov. Rick Snyder and oversees Michigan’s participation in the Gordie Howe International Bridge project.

When a bank goes the extra mile United Distribution expanded west, and Flagstar Bank went along for the ride In 2015, President Neb Mekani and COO Hani Mio of United Distribution Group and United Custom Distribution, saw an opportunity to expand the company into California. They were eager to move ahead, but uncertain about financing. United, a full-service wholesaler/distributor of convenience store products, is based in Southfield. Mekani and Mio knew that some banks might be reluctant to follow them to the West Coast. Instead they found that to Flagstar Bank, California was worth it if it meant supporting a client. Together they made it work. That success strengthened their partnership, said Dan Zinser, a relationship manager and vice president at Flagstar who worked on the California solution. Zinser began evaluating other ways he could assist United operations. After discussing the client’s goals and objectives he

quickly noticed that its current reporting and structure were cumbersome. He crafted a financing solution which also included full treasury management that saved the client both time and money. The resulting goodwill on both sides has made for a collaborative working relationship between Mekani, Mio and Zinser. “They can bounce ideas off me,” Zinser said. “I can discuss those internally and get back to them with candid feedback.” Not every bank will leave its home area to follow clients out of state, just to make sure things work. But Flagstar Bank was more than willing to go that extra mile—literally. For the clients, that feeling comes through. “They’re there anytime we need anything,” Mekani said. “I would recommend Flagstar as a banking partner to pretty much anyone.”

COO Hani Mio (left) and President Neb Mekani of United Distribution Group inside their Southfield distribution warehouse. Photo by Jeff Kowalsky

Let us help you go that extra mile. Visit flagstar.com/commercial

MEMBER FDIC

Detroit’s sixth man has always been our ÀUVW We’ve always known that Vinnie Johnson is more than an athlete, more than a business man, more than the founder of our enterprise. He is a builder. A builder of ideas, a builder of value, a builder of community, and a builder of the future. Congratulations VJ. Not just on being a newsmaker. But on being a maker.

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 8 , 2 0 1 8

FOCUS

NEWSMAKERS OF THE YEAR

Mike Duggan Mayor of Detroit

Need to know

JJMayor Mike Duggan made major business expansion pitches for Detroit in 2017

By Chad Livengood clivengood@crain.com

From Foxconn to Amazon, pitching Detroit to global business leaders became a centerpiece of Mayor Mike Duggan’s job in 2017 — sometimes overshadowing his own landslide re-election. As he begins his second four-year term, Duggan is making a bold prediction that employer recruitment efforts are about to pay off. “I think you’re going to see us land another big manufacturing facility in the next few months,” Duggan said in an interview with Crain’s. The mayor later added that the manufacturer is a “automotive supplier that we are seriously pursuing.” The prospect of a new auto parts supplier coming to Detroit comes as Flex-N-Gate is constructing a 600,000-square-foot parts plant in the I-94 Industrial Park on 30 vacant acres of land near Van Dyke Avenue. Duggan ceremoniously shoveled dirt last April during a groundbreaking ceremony with Flex-N-Gate owner Shahid Khan, a Pakistani-American billionaire and owner of the NFL’s Jacksonville Jaguars. “This is the kind of development that we've been working for, the kind of development Detroit has not been able to compete for in recent years,” Duggan said at the time. “But we’re starting to compete and win right now.” As Detroit has found itself in the running for new business, “we’ve got-

JJFoxconn passed on Detroit, while the city still vies for Amazon JJDetroit may land a “big manufacturing facility” in the coming months, mayor says

Detroit Mayor Mike Duggan at the groundbreaking at the former Hudson’s site in Detroit in December.

ten pretty sophisticated at the pitches,” Duggan said. “And we swing and miss sometimes,” the mayor said. “But when you see a Flex-N-Gate, the largest auto supplier plant being built in the city in 20 years go up, you don’t mind a few misses — because the ones that we are hitting are huge.” Duggan took two major swings in 2017 for business expansions — one

was a miss and the jury’s still out on the second. In June, Duggan jetted off to Japan with Gov. Rick Snyder to try to woo Foxconn Technology Group’s chairman to build a flatscreen manufacturing plant in the city that invented the assembly line. The Taiwanese maker of the iPhone passed over Detroit and other parcels in Michigan for a site in southeast Wis-

Martha Firestone Ford Majority owner, Detroit Lions

consin to build a new liquid crystal display panel manufacturing plant that may one day employ 13,000 workers. In September, the jobs hunt intensified when Amazon.com Inc. released a public request for proposals seeking pitches from cities for a 50,000-worker second headquarters with 8 million square feet. Duggan bypassed the normal entities that quarterback economic devel-

Need to know

She has been credited for breathing new life into the franchise J

J Accountability is the watchword under her ownership

By Bill Shea

bshea@crain.com

Detroit Lions majority owner Martha Firestone Ford appears elfin next to the towering football players she employs. But behind the 92-year-old’s signature black sunglasses is a woman utterly finished with the decades — nay, generations — of mediocrity that have surrounded the Lions like a fog under her family’s ownership. Since inheriting the Lions after her husband William Clay Ford Sr.’s death at age 88 in 2014, she has been credited for breathing new life into the moribund franchise that’s won just a single playoff game (in January 1992) since the team’s NFL championship victory in December 1957. They’re 36-28 under her tenure. But being pretty good isn’t good enough for Ford. Accountability is the watchword under her ownership, and she’s been relentless in enforcing that. Last week she green-lit general manager Bob Quinn’s decision to fire head coach Jim Caldwell. Though he was the Lions’ winningest coach in the modern

LARRY PEPLIN FOR CRAIN’S

J She’s also been willing to spend enormous sums on the Lions

Martha Firestone Ford

era, he was unable to beat top-tier opponents or win playoff games. She’s also been willing to spend enormous sums on the Lions: In an age of using tax dollars to aid sports teams, the Lions completed a privately financed $100 million renovation of Ford Field last year. She also signed off last summer on a five-year, $135 million contract that makes quarterback Matthew Stafford the NFL’s highest-paid player. Her rise to powerful, take-no-guff NFL owner began just after World

War II. Martha Firestone, granddaughter of rubber tycoon Harvey Firestone and Vassar College graduate, married Henry Ford’s youngest grandson, William Clay Ford, in 1947, linking two of America’s most famous industrialist families. Her husband paid $4.5 million to buy out 144 Detroit Lions shareholders in November 1963 and assumed full control of the team on Jan. 10, 1964. He had been a minority owner and sat on the team’s board since 1956, and became

team president in 1961. In his decades of ownership, Ford developed a reputation for being loyal to a fault to team executives that had proven inept, creating a culture of losing that bred an unhappy, jaded fanbase. When William Clay Ford died, his widow didn’t wait long to reshape the franchise. The team went 11-5 and earned a playoff bid in her first season as owner, but began 1-7 in 2015. So she fired longtime president Tom Lewand and general manager Martin Mayhew — a move that sent shockwaves across the NFL. She kept the well-respected Caldwell after he changed some assistant coaches. A few weeks later, in an unorthodox move, she hired Rod Wood, CEO of the Ford Estates financial and concierge firm since 2007, to run the Lions’ business operations. Wood, in turn, hired Quinn away from the NFL’s model team, the New England Patriots. Quinn said on Monday that

opment projects and put Dan Gilbert, the city’s most influential landlord, in charge. “Within an hour of Amazon announcing it, Dan (Gilbert) called me and said, ‘I know Bezos. I know how he thinks. I think we can win this thing and I think we need to go all in,’” Duggan recalled. “And I said, ‘Alright, I want to treat this like I would treat an Olympic bid committee.’ … I said, ‘Do you want to chair it?’ He said, ‘Absolutely.’” Duggan fashioned Detroit’s Amazon pitch committee after the regional group Penske Corp. Chairman Roger Penske headed to land Super Bowl XL at Ford Field in 2006 — a panel he served on when he was CEO of the Detroit Medical Center. “That was really kind of what I had in mind, and I’m very proud of the final document,” Duggan said. The multifaceted proposal details real estate options, talent development, transportation options, energy efficiency and potential tax incentives. “We’ll see if Amazon is as impressed with it as we are.” Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood

he talks to Ford several times a week, as does Wood. Under Ford, Wood has led a renaissance at Ford Field that’s seen a revamp of suites and creation of several premium clubs whose corporate naming rights deals have generated millions of dollars in new revenue. Fans have responded to the sense of optimism: The Lions set the attendance record this season at Ford Field, which opened in 2002. Ford publicly pushed back against President Donald Trump’s criticism of NFL players kneeling before games to bring attention to racial inequality issues — but her promise to financially back player causes hinged on players standing during the national anthem. Her stewardship hasn’t been without missteps. There’s been a frosty relationship, which the team says it’s trying to mend, with former superstar receiver Calvin Johnson, who retired before the 2016 season. There also was some backlash when the team switched radio broadcasters in 2015 and the Lions were accused of trying to censor on-air criticism of the team. Mistakes will be forgiven if Ford accomplishes the team’s stated goal: Winning the franchise’s first Super Bowl.

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 8 , 2 0 1 8

SPECIAL REPORT: NEWSMAKERS OF THE YEAR

Dan Gilbert Founder and chairman, Quicken Loans Inc. and Rock Ventures LLC By Kirk Pinho kpinho@crain.com

Dan Gilbert at the downtown Detroit groundbreaking for what will be the state’s tallest building.

Vinnie Johnson Majority owner and chairman, Piston Group

Need to know

JJPiston Group moves into engineering, design and manufacturing JJPiston’s revenue expected to hit $2.8 billion in 2018

By Dustin Walsh

JJGrowth has made Piston a leader in minority-owned supplier business

Piston Group closed on the $175 million acquisition of Takata Corp. subsidiary Irvin Automotive near the end of 2016. The deal was the beginning of Piston’s foray into engineering, design and manufacturing and becoming the largest minority-owned automotive supplier. The acquisition was a rebirth for the Redford Township-based supplier, said majority owner, chairman and former Detroit Pistons guard Vinnie Johnson. Since its founding in 1995, Piston has largely

relied on assembly contracts from automakers, such as Ford Motor Co., a common way to distribute contract dollars to minority-owned enterprises that is often unpredictable. Irvin Automotive manufactures and supplies interior trim products. “Irvin was a huge win for us,” Johnson said. “It gets us into engineering and design, allow us to go into other industries and new customers we didn’t have access to before. The assembly side of the busi-

dwalsh@crain.com

LARRY PEPLIN FOR CRAIN’S

To describe Dan Gilbert’s 2017, you almost have to look outside the dictionary. The billionaire founder and chairman of Quicken Loans Inc. and Rock Ventures LLC started construction in downtown Detroit on the state’s tallest building, helped usher through the state Legislature a sweeping series of tax incentives for large-scale developments (yes, like the ones he is doing), and pushed the region’s political, business, nonprofit and education leaders to work on a bestfoot-forward bid to lure Jeff Bezos and Amazon to build a second corporate campus in Detroit and Windsor. In addition, many of the other redevelopments in his ever-growing pipeline got underway, were revealed publicly for the first time or were completed, ranging from the redevelopment of the Book Tower to an addition to One Campus Martius and news that his team has been in discussions about redeveloping the massive former Uniroyal Tire Co. site on the east Detroit riverfront. As of this writing, he and Detroit Pistons owner Tom Gores could also land a Major League Soccer expansion team to play at Ford Field. And he continues to inch closer toward redeveloping the site of the half-built Wayne County Consolidated Jail on Gratiot. “It’s been crazy,” Gilbert said. “You gotta do it one day at a time or you sort of get overwhelmed.” In short: It was a banner year for Detroit’s most influential landlord and developer, who moved Quicken

Need to know

JJGilbert started construction in downtown Detroit on the state’s tallest building JJHe helped usher through the state Legislature a sweeping series of tax incentives JJPushed the region’s leaders to work on a bid to lure Amazon HQ2

to the city in 2011 and has been on a virtually non-stop acquisition and building spree in and around downtown, renovating and filling up long-vacant buildings and coming out with new construction plans. Constructing the 800-foot residential skyscraper on the site of the former J.L. Hudson’s department store site at Woodward and Grand River avenues downtown isn’t what consumes Gilbert the most, he said in an interview last month with Crain’s. It’ll get done, come hell or high water, he says. Instead, he’s thinking about what will complement it immediately to the north, on the same block, in a 9-12 story “podium” building that’s expected to house a mix of uses, ranging from office to conference and retail space, among any number of others. Every element of the $909 million development must work in harmony. “The gem is the podium. It will be the thing we spend the most time on, the most unique,” he said. Gilbert is far from just getting started. But that’s not to say he’s fully made his vision for Detroit a reality. With 15 million square feet or so under ownership and/or management already, his team envisions 9.2 million square feet — mostly new construction, since there are few key buildings downtown that he doesn’t already own — of new real estate added to his portfolio by 2022. Some of that is contingent upon Amazon selecting Detroit, but much of it is not. Detroit’s joint bid with Windsor to house Amazon, revealed last month in a 242-page spiral-bound book,

Former Detroit Pistons guard Vinnie Johnson is majority owner and chairman of Redford Township-based Piston Group.

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C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 8 , 2 0 1 8

SPECIAL REPORT: NEWSMAKERS OF THE YEAR With 15 million square feet or so under ownership and/or management already, his team envisions 9.2 million square feet — mostly new construction, since there are few key buildings downtown that he doesn’t already own — of new real estate added to his portfolio by 2022.

Wright Lassiter III

JJOfficially became CEO of Henry Ford Health System in January after two-year stint as president JJAccomplishments include groundbreaking on multi-purpose outpatient cancer center, sports performance center with Detroit Pistons and bike-sharing sponsorship with city of Detroit

By Jay Greene jgreene@crain.com

Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

Wright Lassiter III, CEO of Henry Ford Health System, called 2017 the year of partnerships for the six-hospital, $5.7 billion integrated health system in his first full year as system CEO. Accomplishments under Lassiter’s leadership include groundbreaking on a major outpatient cancer center on its Detroit campus in New Center and successful negotiations to become the Detroit Pistons’ official medical provider and medical manager of a 175,000-square-foot sports performance center. “I think the negotiations to become (the Pistons’ official medical provider) were a success for us. Before the snow hit (Dec. 12), we had bulldozers out and they were beginning to clear out the surface and digging holes in the ground,” Lassiter said. The $155 million cancer center is slated to open in early 2019 while the $83 million sports center is scheduled to open the summer before the Pistons’ 2019-2020 season. The facility will be privately financed and will be owned by the Pistons organization. It also will include a sports medicine, treatment and rehabilitation facility managed by Henry Ford. Lassiter became CEO of Henry Ford officially in January, although he was essentially CEO-in-waiting for two years beginning in September 2014 before former CEO Nancy Schlichting retired. In 2017, Henry Ford also installed a cutting edge advanced radiation therapy system called MRIdian Linac at its Henry Ford Medical Center-Cottage in Grosse Pointe Farms. The system’s first patient in the world was treated there on July 19 for prostate cancer. Using MRI and linear accelerator delivery, the dosages can be more precise and radiation treatments more accurate.

ness, it’s not long-term sustainable because a lot of that business can be brought back inside (automakers and suppliers) when things get tight. It’s a value-add business, so if things go sideways, they want to add that work to their balance sheet. It’s not always a good place to be for us.” But the addition of Irvin — a Troy-based supplier of seat-trim and headrest covers, sun visors, armrests and console lids and employs about 7,100 — put Piston on firmer ground. Piston’s revenue is expected to hit $1.9 billion for 2017, up from $1.8 billion in 2016 and $930.8 million in 2015. “It gave us security,” Johnson said. “It’s opened a lot of doors for us. I see more opportunities because of Irvin than we ever had with Piston (assembly business). We have real opportunities to grow now.” By 2018, Piston is expecting to generate revenue of $2.8 billion, Johnson said, nearly five times the size of the minority-owned busi-

ness in 2012 at $570 million. Prior to the Irvin acquisition, Piston had been growing, largely thanks to Ford and growth with other domestic suppliers. In 2012, Johnson’s other entity, V. Johnson Enterprises LLC, announced the formation of a new joint venture with Valeo SA called Detroit Thermal Systems LLC. Piston is also assembling lithium-ion battery packs from LG Chem and Panasonic for use in Ford’s plug-in-electric vehicle lineup before extending to its battery-electric vehicles. Irvin is also helping Piston expand to new customers, such as growing work with FCA US LLC and with non-domestic automakers like Toyota Motor Corp., which Piston does assembly work for in Georgetown, Kentucky. Johnson said the company is preparing to secure more work with Toyota and other foreign automakers. “Irvin already had a great model and a great reputation and we’re

shows a vision for the city’s skyline chockful of new skyscrapers and mid-rise buildings. The Seattle-based e-commerce leviathan anticipates needing 8 million square feet in the next 15-17 years. Whatever North American city or region Amazon ultimately selects is expected to be injected with 50,000 jobs and a $5 billion investment. The company expects to announce its decision this year, and Gilbert is confident that Detroit has a serious shot at winning the economic development sweepstakes. “I haven’t picked this up in two months,” he said last month, referring to Detroit’s bid for the so-called HQ2 submitted in October. “I read the letter (written to Bezos) and the 6 or 8 pager that we did ... When you go to what they want, it hits a lot of them.” In many ways beyond comprehension, he and his team hold immense sway over a vast swath of Detroit’s future. Its real estate. Its tenants. Its retail sector. And, in some ways, its perception as a whole.

Need to know

CEO, Henry Ford Health System

JJClinical expansions in oncology, cardiovascular and research dollars generated

Wright Lassiter III became CEO of Henry Ford officially in January, although he was essentially CEO-in-waiting for two years beginning in September 2014.

“We felt very comfortable that this technology is superior to a proton beam therapy center,” Lassiter said. “This is a major investment in precision medicine.” Lassiter said Henry Ford plans to install a second MRIdian in 2020 at its Brigitte Harris Cancer Pavilion at the Henry Ford Cancer Institute. “This year we are going to be at or nearly at $100 million in research revenue for the first time in history,”

building on that,” Johnson said. “We’re now looking at other opportunities to expand beyond trim and into seating.” Piston is also looking for bolt-on acquisitions in 2018 to pair with its Irvin business, Johnson said. The rapid growth and new business have made Piston a leader in the region’s, and industry’s, minority-owned supplier community, a responsibility which Johnson says he takes seriously. “A lot of MBEs don’t have the wherewithal to take on opportunities,” Johnson said. “Without Irvin, everything we did was directed by the (automakers). We were limited to nuts and bolts. We’re now in a position to change that for others and source business to other suppliers, particularly MBEs. But it’s not about just giving them business, it’s helping them manage that business. We feel that responsibility.” Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

said Lassiter, noting that recruitment of additional researchers and expanded research in cancer, neurosurgery and cardiovascular helped push Henry Ford over its $82 million in research in 2016. Other partnerships included Henry Ford and other health systems working collaboratively with the state of Michigan on the opioid epidemic to improve the Michigan Automated Prescription System. Anoth-

er was a partnership with the city of Detroit’s MoGo bike sharing program to help expand the city’s 430 bikes at 43 stations spread around 10 neighborhood locations. A clinical partnership with four other health systems on the Detroit cardiogenic shock initiative will help double survival rates of life-threatening heart attacks, Lassiter said. Other partners include Beaumont Health, Detroit Medical Center, Ascension’s St. John and Providence hospitals and Saint Joseph Mercy Health System. Lassiter also is involved indirectly in the contract problems between Wayne State University School of Medicine, Detroit Medical Center and University Pediatrics, the independent pediatric group affiliated both with Wayne State and DMC. Last year, Jack Sobel, M.D., WSU’s medical school dean, said frustration with a three-year teaching and clinical services contract with DMC led university officials to begin affiliation talks with Henry Ford and its 1,200-physician medical group. “We are still very committed to our long-standing partnership with Wayne State,” Lassiter said. “One of the benefits of a new leader is trying to help the organization to be more focused and deliberative with partnerships. With Wayne State, we really believe (there is) synergy of working together on the research and clinical front. ... There seems to be a natural affinity with the two organizations.” Jay Greene: (313) 446-0325 Twitter: @jaybgreene

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ART VAN FURNITURE CONGRATULATES OUR FOUNDER FOR BEING NAMED A CRAIN’S NEWSMAKER OF THE YEAR For six decades Art Van Elslander has been a visionary showing us what hard work, dedication and commitment looks like. From employing thousands of families for nearly sixty years, saving America’s Thanksgiving Parade in 1990, helping to raise money and awareness through the Art Van Charity Challenge, to his generous donation to the Father Casey Solonus Center, Art Van is an iconic businessman and one of Michigan’s most beloved philanthropists. Mr. Van, we thank you for all that you have done. With gratitude, All 3700 Art Van Furniture Associates

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 8 , 2 0 1 8

SPECIAL REPORT: NEWSMAKERS OF THE YEAR

Rip Rapson and La June Montgomery Tabron President, Kresge Foundation; President and CEO, Kellogg Foundation By Sherri Welch swelch@crain.com

Detroit’s educational issues have made headlines for years. And for years, those who have tried to fix them have faced myriad road blocks, political and otherwise, in their efforts. That’s why W.K. Kellogg Foundation President and CEO La June Montgomery Tabron and Kresge Foundation President Rip Rapson made big news in November when they announced a combined commitment of $50 million to address many of those issues at their root by establishing a coordinated, quality early childhood education plan. The amount of the commitments sent a signal that the foundations are serious about making real progress to improve early education in Detroit. And the joint development of a plan to improve early childhood, with input from thousands of stakeholders, stood as a model of collaboration between two national foundations that had never worked that closely together before. They developed the framework jointly, their teams working closely together for a year, despite having divergent program interests and very independent boards. It set the table for increased coordination among all of the funders of early childhood care and education efforts in the city. The Kresge and Kellogg commitments came after a year-long look at the city’s existing early childhood education infrastructure showed a dearth of coordination and quality options for children and their families.

Need to know

JJMontgomery Tabron and Rapson

commitment to address early childhood education issues in Detroit begins process to fix education JJThe pair led development of a plan to create a coordinated, quality system in the city JJAnd they put a joint $50M behind it to signal their commitment to the effort

Tabron and Rapson led a 23-member committee of foundation, business and community leaders in developing the Hope Starts Here plan. As a native Detroiter who grew up in the city and still has a home there today, Tabron ensured the project gave voice to the parents, educators and other stakeholders who will be impacted by the plan’s strategies and gave them access to the same data she and Rapson and their teams were reviewing. About 18,000 Detroiters and more than 240 community and educational experts informed the development of the framework for creating a coordinated, quality early childhood education system that ensures children are born healthy, prepared for kindergarten and successful in their education after that. The plan is critical for Detroit, Tabron said. “It builds a scaffolding ... all of these providers can step on to ... to know they are contributing to not only the children they are serving but contributing to a system that is (serving) all children.” Over the past year, it became apparent that all stakeholders were on the same page, hoping to achieve “a highly networked, appropriately resourced, child-centered, and culturally appropriate suite of activities that ensure that the city’s youngest children arrive at the schoolhouse door ready to learn and succeed in school,” said Rapson, who brought experience coordinating early childhood education and care in Minneapolis during his tenure as president of the McKnight Foundation. Getting everyone to agree on those goals sounds simple, but it’s not, he

“There is no way we will meet the challenges of preparing our children for school unless we agree as a community on what we want and on the importance of using all our financial, political and social organizing tools to see that it’s accomplished.”

La June Montgomery Tabron

Rip Rapson

said. It means everyone from a parent in Southwest Detroit to the president of United Way, a childcare provider in Northwest Detroit and Tabron and Rapson themselves must be aligned, he said. “There is no way we will meet the challenges of preparing our children for school unless we agree as a community on what we want and on the importance of using all our financial, political and social organizing tools to see that it’s accomplished,” Rapson said. Kellogg has done early childhood

Dug Song

development across the country, Tabron said, and knew Detroit wouldn’t fully recover without addressing early education. But because there were already so many funders supporting early childhood education efforts locally, she said she and Battle Creekbased Kellogg wanted to be invited into the space in Detroit and not “dominate and overshadow all the work that had been done.” “The partnership with Kresge was a way to enter this space in a way to create a respectful partnership … that would allow us to bring some of our

Sherri Welch: (313) 446-1694 Twitter: @SherriWelch

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boardroom bites CEO, Duo Security Inc. By Tom Henderson thenderson@crain.com

Dug Song

“It builds a scaffolding ... all of these providers can step on to ... to know they are contributing to not only the children they are serving but contributing to a system that is (serving) all children.”

national understanding into this work, and some of our national grantees who could help Detroit understand its unique space in creating a system for early childhood,” Tabron said. A little more than half of Kellogg’s $25 million will be granted within 12 to 18 months in support of efforts including quality renovation of childcare facilities and early care and education scholarships. Kellogg will support small providers — in-home providers as well as centers — that want to renovate but need capital and resources, Tabron said. The foundation could create a loan fund or provide grants to support those efforts. Rapson and Kresge are focusing more on larger-scale investments. In November, Rapson said construction of a new child care center in an undisclosed neighborhood would begin in 2018, with a licensed operator running it. In December, he said that neighborhood would be Northwest Detroit. Kresge is working with Chicago-based IFF to create a revolving loan fund to make funds available for building renovations in the near future. Going forward, its investment will also support fellowships and technical assistance programs for early childhood providers already working in the city’s neighborhoods and connect Detroit to some of the best ideas on early childhood development from across the country. Kresge will also support efforts to build better connections among all elements of early childhood programming in the city. Sometimes, Tabron said, she reflects on how fortunate she is to do something that not only means so much professionally, but also personally. “I feel very fortunate and privileged to be able to do what I’m doing not only for my city but for children who need attention and a spotlight,” she said. “This is all about making sure every child has an opportunity to thrive. I can’t think of a better body of work that anyone can do.”

For Ann Arbor-based Duo Security Inc., 2017 was a big year. The cybersecurity company grew its customer base from 8,000 to more than 10,000 in 100 countries around the world, including Microsoft, Facebook, Paramount Pictures Corp., the University of Michigan, Random House, Etsy, Yelp, Zillow Group Inc. and the University of California, Los Angeles. And Duo made history when it announced in October that it had raised a venture capital round of $70 million, the largest ever in Michigan. “It was a transformational year for

Need to know

JJDuo Security Inc. grew its customer base from 8,000 to more than 10,000 in 2017 JJIt made history when it announced in October that it had raised a venture capital round of $70 million JJLargest ever venture capital round in Michigan

us,” said company CEO Dug Song, who co-founded the company in 2010 with Jon Oberheide, the company’s chief technology officer. In June, Song was honored as a Michigan Change Maker by Crain's. In November, Song and Oberheide were named Entrepreneurs of the Year at the Michigan Venture Capital Association’s annual awards dinner at Little Caesars Arena in Detroit. SEE SONG, PAGE 15

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Deirdre Waterman Mayor, City of Pontiac

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Just a few short years ago, Pontiac was under the thumb of one of a series of state-appointed emergency managers after years of financial decline precipitated by a shrinking automotive industry in the one-industry town. But now, with Mayor Deirdre Waterman at the helm, several prominent companies have selected the Oakland County seat for their new corporate headquarters, marking hundreds of millions of dollars in new investment and creating thousands of new jobs. She had a role in bringing new industries like financial services, defense contractors and tech to the city once undeniably reliant on the health of the Big 3 — General Motors in particular. “There was no silver bullet,” said Waterman, first elected as mayor in 2013 less than three months after Louis Schimmel retired as the city’s last EM. “Pontiac is rebuilding, restructuring and reinventing itself. There was a lot of moving parts to getting from where we were with an emergency manager to where we have positioned ourselves.” After 2017, Pontiac is the future home to United Shore Financial Services LLC, currently based in Troy; Williams International Co. LLC, currently based in Commerce Township; and several companies within Peter Karmanos’ Mad Dog Technolo-

Leaders in Complex Business Lawsuits and Class Action Litigation www.miller.law

J Waterman helps bring new industries to Pontiac J United Shore Financial Services LLC and Williams International Co. LLC are among those moving to the city J Investments to create thousands of new jobs

gies portfolio of tech firms. In addition, the Pontiac Silverdome, which sat decaying for years after the Detroit Lions moved to Ford Field in 2002, is being demolished, paving the way for 127 acres of land to be redeveloped north of M-59. United Shore will relocate into a building occupied by Hewlett Packard Enterprise, now DXC, on South Boulevard and spend $80 million moving more than 2,100 employees there this summer. (DXC employees are in the process of moving to Auburn Hills.) Waterman said last month the move-in date is June 4 and that discussions about the relocation had been ongoing for months, first for the Ottawa Towers property downtown and then for the HP building. “We were acquainting them with the fact that Pontiac is at a point where it could check off many of the things they wanted,” Waterman said last month. Williams International, which makes small gas turbine engines for use in the aviation industry and military, bought the Michigan Motion Picture Studios building at 1999 Centerpoint Parkway, plus two parcels with 120 acres that will support a new factory up to 1 million square feet in the next several years. Williams Inter-

Art Van Elslander Founder, Art Van Furniture, Van Elslander Capital and the A.A. Van Elslander Foundation swelch@crain.com

Melvin “Butch” Hollowell, Managing Partner, Detroit Office

(248) 841-2200

kpinho@crain.com

By Sherri Welch

1001 Woodward, Suite 850

950 West University Drive / Suite 300 / Rochester / Michigan / 48307

By Kirk Pinho

Need to know

When you sell the Detroit company you’ve spent a lifetime building into one of the largest independent furniture retailers in the country, you make news. Art Van Elslander did just that early in 2017 when he sold his Warren-based Art Van Furniture Inc. chain to Boston-based private equity firm Thomas H. Lee Partners LP, putting it on a track for expanded growth. Terms of the deal were not released, but a Crain’s analysis of comparable deals put the value of the sale around $550 million. Van Elslander founded the chain 58 years earlier in a storefront on Detroit’s Gratiot Avenue as “a oneman show,” buying, selling, cleaning, dusting and putting all of the furniture together himself.

Need to know

JJVan Elslander sale of Art Van Furniture shifted ownership to private equity firm, putting it on track for expanded growth JJLaunches investment company, new personal foundation after sale JJAnnounces a $20M commitment to expand Solanus Casey Center and lower east side Detroit neighborhood around it

By the time of the sale, the company had grown to more than 100 stores across five states, over 3,500 employees, a franchising program and nearly $1 billion in revenue. That was up from a reported $650 million in total revenue in 2015, which landed Art Van at No. 35 on Crain’s 2016 Private 200 list. In the days following the sale, Van Elslander told Crain’s he was “certainly not going to get in a rocking chair” after the deal closed. He launched a new, for-profit company, Van Elslander Capital LLC, in Birmingham to make targeted investments and acquisitions. By summer, he broke ground on a new 11,000-square-foot office building on Woodward Avenue at Oak Street in Birmingham to house his new company as well as his newly founded personal foundation, the A.A. Van Elslander Foundation. The for-profit company planned to focus largely on Michigan investments and acquisitions, though it

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C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 8 , 2 0 1 8

SPECIAL REPORT: NEWSMAKERS OF THE YEAR

SONG “There was a lot of moving parts to getting from where we were with an emergency manager to where we have positioned ourselves.”

Deirdre Waterman

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national’s investment in Pontiac is slated to be $334.5 million, according to the Michigan Economic Development Corp. Mad Dog announced in 2016 it was moving Lenderful LLC, Deliver My Ride LLC, Perfect Realty LLC and others to the Riker Building downtown and completed the move last year. In addition, following a lawsuit against the stadium’s owner, a judge ordered the Pontiac Silverdome demolished, a process that began in December with the partial implosion of the stadium’s upper ring. Once completed later this year, the demolition will free up a large chunk of land for new use. Waterman, an ophthalmologist by training who ran her Holloway Eye Care practice in the city for more than three decades, got into politics after hearing that Pontiac’s library would be closing due to budget cuts. With others, she founded Friends of the Pontiac Public Library and pushed for passage of a millage for it. These days, the library is open for business, as is the city.

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“Some people thought the activity in Detroit was a dead-cat bounce, but what’s happening there is impressive and sustainable. We have customers there and it might make sense to support them and the city with an office.”

FROM PAGE 13

Van cerking

“Father Solanus still offers that hope to so many through the work of the center and the Capuchin Soup Kitchen, and I am privileged to honor his legacy in a way that will benefit the entire community.” Art Van Elslander

could expand its efforts regionally or nationally, his chief of staff Diane Wells told Crain’s in January. One thing was clear: Van Elslander had no plans to remain in the furniture business. In June Van Elslander recruited his son, Gary Van Elslander, who’d remained president of Art Van Furniture after the sale, to serve as president of Van Elslander Capital. The company has hired another three staff members since, Wells said. But as of year’s end, it was still mum on its new investments. Van Elslander made headlines again at year’s end announcing a commitment estimated at $20 million to the Solanus Casey Center. The gift supports the expansion of the center and its campus to enhance the Catholic pilgrimage site and revitalize the lower eastside Detroit neighborhood around it. The project was still conceptual as negotiations to acquire about 75 city-owned and privately owned properties were still in the works. But as envisioned, the plan will increase the center’s footprint by about 50 percent, creating much-needed parking, a new building with a cafe and outdoor seating, open green spaces for outdoor masses, room for large meetings and concerts, gardens with the stations of the cross, an outdoor votive chapel and, possibly, newly developed or rehabbed hous-

ing to keep neighbors in the area and provide a limited number of residences to visitors of the center. The gift pays homage to the relationship Van Elslander’s father had many years ago with the late Father Solanus Casey. As his business grew, Van Elslander was a donor to the Capuchin Soup Kitchen and involved in the friars’ charity work, the center’s director the Rev. David Preuss said. He was also one of the major donors who supported the building of the Solanus Casey Center in 2002. “Growing up in Detroit, I remember my dad going to see Father Solanus when he needed help and guidance,” Van Elslander said in a statement emailed to Crain’s in December. “Father Solanus still offers that hope to so many through the work of the center and the Capuchin Soup Kitchen, and I am privileged to honor his legacy in a way that will benefit the entire community.” Van Elslander initiated the gift to the center knowing it needed additional space, Preuss said. “He caught on really quickly that we want to do this in ways that are sensitive to the needs of the neighborhood and the wider good of the city,” Preuss said. Sherri Welch: 313 (446-1694) Twitter: @SherriWelch

Duo’s newsmaking venture capital round surpassed a $62 million raised by Ann Arbor-based Millendo Therapeutics Inc. in 2016 and brought the total capital raised by Duo to $119 million. It also gave the company a valuation of $1.17 billion, which put it ahead of Ann Arbor-based Esperion Therapeutics Inc.’s $1 billion for the highest valuation for a venture-capital backed company in Michigan, according to the MVCA. Cracking the $1 billion in valuation puts Duo in the ballyhooed tech category known as a Unicorn. “We exceeded all our goals,” said Song of the past year. “We’ve built an enduring company with hundreds of millions in revenue that will be here for decades.” In an interview with Crain’s in December, Song didn’t have precise revenue figures for the year. Still, revenue in the “hundreds of millions” is up from 2016 revenue of $73 million. Song said the company will use that investment to continue to improve its technology in the battle to stay ahead of hackers, using what is called two-factor authentication to identify who is trying to access a computer or network; and will focus both on global expansion and on garnering more contracts with various federal agencies in light of all headlines involving Russian meddling and large data breaches. Two of the investors in the recent funding round will help Duo expand its presence in Europe and Asia, Song said. Index Ventures is based in Switzerland, and Tokyo-based Geodesic Capital’s new fund of $335 million was raised to help U.S. firms reach Asian markets. The company currently has offices in San Mateo, Calif.; Austin, Texas; and London. The Austin office is Duo’s fastest-growing; last year it increased headcount from 30 to 90 and went from 7,000 square feet to 23,400. But despite the influx of capital from European, Japanese and Silicon Valley investors, and a growing national and international presence, Song is adamant that the company will remain headquartered in Ann Arbor. He jokes that Silicon Valley

Dug Song

folks are wine drinkers, and that like others in Michigan, he’s a beer drinker. Song says the company may even expand its brick and mortar presence in Michigan and open an office in downtown Detroit. “We may. Some people thought the activity in Detroit was a dead-cat bounce, but what’s happening there is impressive and sustainable. We have customers there and it might make sense to support them and the city with an office,” he said. In November 2016, Song was named by Crain’s as one of 50 people in IT to know in Michigan. He was a member of the 2012 class of Crain’s 40 Under 40. In 2000, Song was one of five self-proclaimed geeks and hackers who co-founded Arbor Networks, a University of Michigan spinoff that would attract $33 million in venture capital over the next two years. By the time Arbor was sold to Texas-based Tektronix Communications in 2010, 80 percent of the world’s internet providers used its cybersecurity software. He and Oberheide, another Arbor alum, then founded Duo Security. Song has long been a mentor for would-be entrepreneurs in Ann Arbor, co-founding the Ann Arbor New Tech Meetup, a networking venue, and the Tech Brewery, an tech incubator. A skateboard buff, Song was chief organizer and fundraiser for the 30,000-square-foot Ann Skatepark on Ann Arbor’s northwest side.

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Early this year, each of MLB’s 30 clubs is expected to get a $50 million-plus payment as part of the league’s $1.58 billion sale of a majority share of its BAMTech online streaming subsidiary to Burbank, Calif.-based Walt Disney Co. in August.

Shared revenue payments, TV deal money should cover entire 2018 Tigers payroll By Bill Shea bshea@crain.com

Thanks to a one-time lump sum payment from Major League Baseball’s sale of its digital streaming unit to Disney, the Detroit Tigers will have their entire 2018 player payroll covered before selling a single ticket or beer. Early this year, each of MLB’s 30 clubs is expected to get a $50 million-plus payment as part of the league’s $1.58 billion sale of a majority share of its BAMTech online streaming subsidiary to Burbank, Calif.-based Walt Disney Co. in August. Disney upped its equity share from 33 percent to 75 percent, according to Sports Business Journal. MLB retains the remaining 15 percent. The Tigers and every other MLB team also will get about $50 million this season from baseball’s Central Fund of shares revenues (from national broadcast deals, merchandising, marketing, etc.), according to SBJ. Another $50 million will come from the Tigers’ local broadcast rights deal with Southfield-based Fox Sports Detroit. However, a portion of local broadcast rights fees — believed to be about 31 percent — goes into baseball’s revenue-sharing pool. That means Detroit actually gets about $34.5 million annually from FSD un-

Need to know

Tigers expected to get $50 million-plus as part of BAMTech sale to Disney J

J Team also gets $50 million for local TV rights, national revenue sharing J

2018 payroll so far is $128 million

der a deal that runs through 2021. The estimated $134.5 million — the combination of the BAMTech payout, local TV rights fee, and shared national revenue — is more than the team’s current payroll for 2018, which stands at $128.7 million for now, as calculated by baseball-reference.com. By that cocktail napkin math, the Tigers have their payroll covered before generating revenue from games. Detroit will collect tens of millions of dollars from ticket sales, corporate sponsorships, suite leases, merchandise and concession sales, parking, and various other revenue streams, atop the $134.5 million. Player costs are typically about 55 percent of a baseball team’s expenses. Of course, the team is owned by the billionaire Ilitch family, so it’s never in danger of being unable to cover its bills. But baseball’s financial system means wealthy owners, especially this year, likely won’t have

to dip into non-baseball funding to pay for their teams. Forbes last year estimated that the Tigers generated $275 million in total revenue for the 2016 season, and ran an operating income deficit of $36.4 million. In addition to player payroll, the Tigers pay millions to executives and other non-player personnel. Other expenses include stadium debt and the operational cost of 162 games. They also have an estimated $14 million in player benefits, according to Baseball Prospectus. The Tigers have a standing policy of not discussing team finances, and declined to comment on the BAMTech payment. The team could apply that payment to operational expenses and debt. Or, it could bank the money as a cash reserve to use to sign players in the future. “Better to drop payroll, get younger players, and have a big bankroll for next year’s free agent class,” said Marc Ganis, co-founder of Sportscorp Ltd., a Chicago-based sports consulting firm. “This should be a profitable year for them, and they can put that money away for future signings.” The BAMTech windfall happens to come as the Tigers are cutting player costs as part of a long-term

strategy to rebuild into a younger, more efficient winner. Mike Ilitch, who bought the team in 1992 for $85 million, began a free-spending pursuit of a World Series title in the mid-2000s, committing $1.6 billion to player salaries over 11 seasons. He died in February 2017 at age 87, and son Chris Ilitch now runs the club as president. He and the team front office, led by General Manager Al Avila, switched last year to a strategy of shedding expensive veteran talent — payroll slashing — in favor of developing young, cheap prospects within Detroit’s farm system. Bolstering that effort is investment in advanced analytics and scouting. The Tigers went all-in on the strategy last season by trading away Justin Verlander, Justin Upton, J.D. Martinez, Ian Kinsler, Alex Avila and Justin Wilson. Detroit’s top salaries next season will be $30 million for Miguel Cabrera, $24 million for Jordan Zimmermann, and $18 million for Victor Martinez. They’ll also pay $8 million to Verlander and $6 million to now-retired Prince Fielder as part of trades that keep the former players on the team’s books for awhile. The BAMTech payment alone will cover Cabrera and Martinez. The shared national revenue en-

joyed by the Tigers largely comes from MLB’s TV deals. Much of baseball’s Central Fund is the pool of broadcast rights contracts with the networks that will pay out $12.1 billion over their terms. Those deals began in 2014 and run through 2021. BAMTech was a 2015 spinoff of baseball’s wildly successful digital arm, MLB Advanced Media, and it handles digital streaming. Disney has said it will use BAMTech’s infrastructure to launch its own digital streaming service for the company’s massive vault of entertainment content, including the theatrical releases from Lucasfilm and Marvel Studios, beginning in 2019. It will strip its content from Netflix for distribution on its to-be-named streaming service. Disney (NYSE: DIS) also is expected to launch an ESPN streaming service. It bought the sports network in 1996, and last month it bought New York City-based 21st Century Fox (NASDAQ: FOXA) for $52.4 billion in stock plus the assumption by Disney of $13.7 billion in Fox’s net debt. That gives Disney, once the deal gets regulatory approval, control of Fox Sports Detroit and its sister regional sports networks. Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 8 , 2 0 1 8

TutorMate about halfway to goal of 1,000 tutors in Detroit schools By Sherri Welch swelch@crain.com

Evanston, Ill.-based nonprofit Innovations for Learning has set a goal to have 1,000 corporate tutors reading with at-risk first-graders in Detroit schools by 2020. After slow and steady growth since 2009 when it entered the market, it’s about halfway there. The program has growing corporate support and has shown some measurable success in helping students improve their reading levels, confidence and engagement in learning. But it’s one of several tutoring programs working with students in the Detroit Public Need Schools Commuto know nity District that JJNational are under review TutorMate as Superintenprogram sets goal dent Nikolai Vitti to pair 1,000 and his team recorporate tutors work the district’s with Detroit curriculum. students by 2020 TutorMate “is an excellent reJJHitting goal source for would double schools to current number of strengthen partcorporate tutors nerships with the reading with business comstudents through munity,” Vitti the nonprofit said in an program emailed stateJJVitti says ment. district is reviewing Vitti said he’s effectiveness of seen initial corthis and other porate support tutoring programs through the Tuas it makes torMate program curriculum in Miami and decisions for the Jacksonville blosfuture som into broader and deeper support for schools. Here in Detroit, individual schools have initiated the partnership with TutorMate, Vitti said. “We are evaluating the effectiveness of the program, along with many others, as we plan and make curriculum decisions next year.” Of the 26 cities the TutorMate program is operating, Detroit has the second-highest number of corporate tutors, with 493, coming in only behind Innovations for Learning’s home city of Chicago which has 525. The list of local companies and nonprofits supporting the program with funding and tutors has grown to more than 16. Participating companies include: AT&T, Amerisure Insurance Co., Brooks Kushman, Comerica Bank, DNV GL, DTE Energy Co., General Motors Co., Honigman Miller Schwartz and Cohn LLP, JPMorgan Chase & Co., Lear Corp., Masco Corp., Miller Canfield Paddock and Stone PLC, Quicken Loans Inc., UBS, U.S. Dept. of Justice and United Way of Southeastern Michigan, which sometimes aggregates a few other organizations which it recruits under its own umbrella, such as FCA-USA, said Dan Weisberg, national director for TutorMate. The convenience TutorMate offers is its biggest selling point, Weisberg said. “The assumption is there’s a lot of busy professionals who would like to give back to the community in a way that’s life-changing and meaningful. But the more traditional avenues

Nikolai Vitti: Evaluating tutor programs.

Dan Weisberg: Program focuses on first grade.

have required a time commitment that’s typically beyond their capacity, given their jobs.” Corporate tutors, who must go through annual background checks, Skype from their desk, home or wherever they have Internet access, to work on reading with a student they are paired with for a half-hour each week during the school year. Corporate contributions of about $5,000 for 30 tutors and students or $2,000 for 10 students help cover the purchase of a computer and headset and teacher and tutor training on the TutorMate software and website. Students chosen for the program are only slightly behind in reading, capable of dealing with the technology and likely to benefit from the oneon-one interaction.

“They don’t want to miss their phone call from their corporate tutor. It’s a good way to encourage them not to miss school.” Dina Bonomo

The virtual environment cuts out commuting time for tutors, enables them to choose the weekly time that works best for them and to reschedule at the last minute if needed. The goal of engaging 1,000 tutors in Detroit “is a great psychological milestone that may allow the program to grow even bigger ... and perhaps serve other high-need school districts in Southeast Michigan,” said Weisberg, a Detroit native. “More districts and companies will take a closer look when we surpass 1,000 tutors.” The program focuses largely on students in first grade because it’s the most critical grade from a reading development standpoint, and students are very eager for and responsive to the support at that age, he said. Tutors “have an opportunity to have an impact not only on their reading participation but their psycho social attitudes about themselves as achievers, including their feelings about academics, school, reading (and) learning,” Weisberg said. And by working with students who just need a little extra help, it gives the teacher “extra bandwidth” to work with students who are further behind, he said.

Measuring impact For confidentiality reasons, TutorMate doesn’t collect student data that would show the exact progress each student makes, Weisberg said. But a randomized study done in 2014-15 by Epsilon Economics in

Chicago at Innovations In Learning’s request found that students who received the tutoring scored 15 percent higher on district reading tests than a Dina Bonomo: control group of Benefits go students. beyond reading. That difference puts TutorMate students about a reading level ahead of their peers, Weisberg said. To put that in context, in general, the goal is to move a first-grader up six or seven reading levels during the school year, he said.

Other benefits The program brings benefits that extend well beyond reading ability, said Dina Bonomo, principal of Bennett Elementary School in Southwest Detroit. TutorMate tutors from Quicken are currently working with about 60 students in six classrooms, she said. Some of the students are in second-grade rather than first in order to give bilingual children still working on their foundational reading skills extra help, Bonomo said. When students have someone to listen and to ask them questions about what they’re reading, they have a cheerleader, someone rooting for them, she said. If attendance is an issue, the TutorMate program is also a motivator. “They don’t want to miss their phone call from their corporate tutor. It’s a good way to encourage them not to miss school,” Bonomo said. Children also benefit emotionally from having an adult interested in their progress and willing to listen to them read out loud. And they are exposed to career opportunities they may never have known existed, she said. Eighty-six employees of the Quicken Loans family of companies are currently tutoring in Detroit schools. Initially, Quicken looked to TutorMate as a convenient way for its employees to make an impact, but its employee tutors quickly realized the program was making a difference both in building reading skills and confidence in young students, said Laura Grannemann, vice president of strategic investments for the Quicken Loans Community Investment Fund, in an emailed statement. “A shy student might turn into a totally different kid by June,” she said. Now in its seventh year of volunteering through TutorMate, Comerica Bank has 70 of its local employees working with students in Detroit schools. The program provides the greatest impact for the volunteer hours employees are contributing, as every minute of their volunteer time is spent helping children learn, said Mark Fontana, senior vice president, director-enterprise data and analytics. “Our colleagues take pride knowing they’ve helped prepare a student for second grade and beyond.” Sherri Welch: 313 (446-1694) Twitter: @SherriWelch

Wayne State signs medical contract with state prison system By Jay Greene

Need to know

jgreene@crain.com

Wayne State University has contracted with the Michigan Department of Corrections for three key chief medical positions in the state’s $1.9 billion prison system. In a one-year, $666,081 contract, Wayne State will provide a chief medical officer, Carmen McIntyre, M.D.; a chief psychiatrist, Shahid Hussein, M.D.; and an assistant chief medical officer, James Blessman, M.D. The three physicians will work closely with the medical staff contracted by Corizon Correctional Healthcare, the state’s in-prison health care provider. McIntyre, the former medical director at Detroit Wayne Mental Health Authority, told Crain’s she was hired by Wayne State on Dec. 18 as associate chair for community affairs in Carmen of McIntyre: Role to department psychiatry and set policies neurosciences. She also is director of the community psychiatry fellowship program. “Our role (as medical directors) is to set policies, implement best practices within the prison system, look at health care outcomes data and see where can make improvements,” McIntyre said. The agreement will supplement the prison system’s health care network, which also includes Henry Ford Health System and McLaren Health Care Corp. Specialty physicians in Wayne State’s network will also be available for consultation, a Wayne State official said. “The leadership of the Michigan Department of Corrections should be commended for reaching out and pursuing an academic medicine partner,” Jack Sobel, M.D., dean of the Wayne State University School of Medicine, said in a statement. “They understand the value of academic medicine and what it can do for the prison popula-

JJWayne State contract with Michigan prison system calls for three medical directors JJOne-year contract pays WSU $666,081 JJState prison system also contracts with Henry Ford and McLaren for specialty care in some regions

tion.” Chris Gautz, MDOC public information officer, said the department reached out to Wayne State after it had difficulty replacing several doctors who had left or retired. “It is tough to attract doctors for these positions. We tried on our own and reached out to other partners. Our director reached out to Wayne State and whether they could fill those critical positions for us,” he said. Beyond the Wayne State doctors, Gautz said, the arrangement will eventually allow Wayne State students in medicine, nursing, social work and pharmacy to do clinical rotations at some of the prison sites. The MDOC operates 30 prisons and 105 field offices. “We are excited about this innovative partnership with Wayne State University that will allow us to continue providing quality health care to prisoners,” MDOC Director Heidi Washington said in a statement. “Their team will be able to offer expert guidance and support to providers at our facilities to ensure the best-possible health outcomes for prisoners. We also hope this will serve as a gateway to WSU students considering a career in correctional health care.” McIntyre said the ability for Wayne State students to gain experience in the correctional system is a plus for the university, the students and the state. “I am also excited about opportunity for multidisciplinary health care settings,” she said. “I am a firm believer that when you get trainees involved in community fellowship programs they will stay local” after graduation. Jay Greene: (313) 446-0325 Twitter: @jaybgreene

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y Earl

Bird

ds e en c i r P

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COME TO

BUILD. LEARN TO

GROW. LEADER. LEAVE A

Crain’s Leadership Academy is a unique five-session program that gives participants the chance to focus on their strengths instead of tired cookie-cutter models. The program also pulls together promising leaders in an environment that encourages them to share their leadership journeys.

“By far the best leadership session I’ve attended. Would definitely recommend this session to anyone looking for leadership development.” – C2 Leadership Academy Graduate

Build Institute becomes independent nonprofit By Annalise Frank afrank@crain.com

Tell us about a leader you know or nominate yourself for participation by visiting: crainsdetroit.com/leadershipacademy.

NOMINATE BY JAN. 19 AND SAVE $1,000 OFF THE TUITION FEE!

The Miller Law Firm is pleased to announce that Melvin “Butch” Hollowell has joined the firm as the Managing Partner of our Detroit office.

Melvin “Butch” Hollowell Managing Partner, Detroit Office

Leaders in Complex Business Lawsuits and Class Action Litigation 950 West University Drive / Suite 300 / Rochester / Michigan / 48307

HEATHER SAUNDERS

With its Build Basics classes, Detroit-based Build Institute aims to teach entrepreneurs and aspiring business owners financial literacy, market research strategies and other skills necessary to find success.

(248) 841-2200

www.miller.law

Build Institute became an independent nonprofit on Jan. 1. The nearly 6-year-old entrepreneur academy has lived under the tutelage of the Downtown Detroit Partnership. But founder and executive director April Boyle decided 2018 was the year to step out from the DDP’s umbrella. With its curriculum, Build Institute aims to give aspiring entrepreneurs and small businesses tools they need to find success and contribute to the city’s economy. It hosts events and leads courses in four to six Detroit neighborhoods per quarter, adjusting its class fees based on what students can contribute. Build Institute saw 25 percent annual enrollment April Boyle: Taken growth, reaching a lifelong total of a slow growth 1,400 graduates. path About 82 percent are women and 60 percent are people of color. The group has helped people secure more than $2 million in funding through Motor City Match, demo days and other partners. Graduates include apparel company Detroit is the New Black, Avenue of Fashion bakery Good Cakes and Bakes and floral shop Pot + Box. “We’ve taken a very slow, kind of bootstrappy, organic growth path,” Boyle said. “The economic development and entrepreneurial space is a little crowded, and we wanted to make sure that our program stood up to the test of time and that the community wanted and needed these programs.” As an affiliate of the Downtown Detroit Partnership for the past nearly six years — originally through the D:hive project — Build did much of its own fundraising, using DDP’s infrastructure. It didn’t have immediate access to its cash with DDP as its fiduciary, Boyle said. But that also meant that as a fledgling initiative, Build had the administrative backing and support needed to test out its model. DDP, which had a 2017 budget of approximately $15 million, runs its own initiatives — but it also oversees affiliates with their own structures, said CEO Eric Larson. “We don’t need to continue, in many cases, to rebuild the infrastructure that (DDP) represents,” Larson said. Instead, small organizations can use the existing setup as an incubator, he said. Spinning off gives Build its own gov-

Need to know

JJBuild Institute became independent nonprofit JJWas an affiliate under Downtown Detroit Partnership JJAims to increase earned revenue, find multiyear funding partner in 2018

erning board and broader fundraising capabilities. “If we’re on our own, our ask is separate,” Boyle said. “It’s just removing a third party from within those layers.” Belonging to the downtown Detroit-focused partnership also began to make less sense as Build doubled down on the city’s neighborhoods and began branching out to other cities. It plans to run classes out of the Bank Suey venue in Hamtramck in the spring and has been contracted by the city of Ferndale to run classes starting in January. And the new overhead costs can be mitigated by increasing earned revenue and fundraising. Three-quarters of Build’s budget — about $750,000 for 2017 and $650,000 for 2016 — comes from philanthropic partners. The rest comes from earned revenue, which the nonprofit aims to grow to a third of its budget in 2018. The budget for this year is likely to rise a bit to $800,000, Boyle said. They'll focus on growing revenue from Build Box, a crate concept that is filled with gifts from class graduates; and courses provided for a fee to municipalities. There are also the regular class fees. She and Christianne Malone, Build's deputy director, compare Build itself to an entrepreneur. “Now we’re at that scaling point,” Boyle said. Malone was promoted from program director as part of the nonprofit transition. The six-person team also plans to hire a new staff member to lead revenue and fundraising development. Boyle said Build is targeting individual donors and seeking a multiyear philanthropic or corporate partner. Build is looking to fill the funding hole left as its $200,000, two-year grant as a 2016 Neighborhood Builder from Bank of America ends. Build expects to match its legal makeover with a physical one by uprooting its headquarters later in 2018, after it gets settled into its 501(c)(3) status. It currently shares space with service organization Repair the World in a building on Bagley Avenue between southwest Detroit and Corktown. Build isn’t yet sure to where it will move. Annalise Frank: (313) 446-0416 Twitter: @annalise_frank

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generation —the kids. Tell us about the organizations you are involved with. Lucido: Maggie Varney runs Wigs 4 Kids. Maggie has been a champion for over a decade. She serves children who have cancer and lose their hair. Those children are getting a pat on the back and at the same time a smile on their face when she can make a wig. In addition, there’s Karen Palka from A Beautiful Me. It’s an organization that Karen put together for individuals with low self esteem. It helps them understand they have the same chemistry of anyone else to make a difference. The last one is Families Against Narcotics. Judge Linda Davis has been the president and CEO. She’s been a champion as a prosecutor and a judge. She wants to help individuals who have a drug problem. When families find out they have an addict in the family, what do they do? We all know it’s an epidemic. We have to take all the energy we have to stop the epidemic. These are all organizations that can work together to make the community stronger.

Burns: Readers in Michigan are interested in your journey. How has that journey been since football ended for you? Jones: The journey has been an adventure. It’s all about understanding where you are in that journey. It’s about the people that surround you. There are a couple iterations anyone goes through whether they make that transition

form the world of football or the world of business or the world of television into the next chapter of your life. I’ve been fortunate in that I’ve surrounded myself with people who have helped me. Working now on my show on CNBC (“Adventure Capitalists”) I’m spending time with business owners and investing with them and working with them and allowing them to enjoy the American dream. Burns: What kind of advice do you give young people who look up to you? Are there things that parents and grandparents can say to youngsters that you’ve learned along the way? Jones: I loved listening to my grandparents when they were alive. One of the things they would always give me was the nod of curiosity. We have everything at our fingertips these days. You can pick up the phone and find anything you want. There’s something about a natural curiosity to look around where you are. Nine and a half out of 10 things are just given to you — or you ask Siri. You need to see what else is out there!

Burns: The MAC is on a roll. What are some of the things you as commissioner are most excited about? Steinbrecher: What I like is that our leadership pushes us to be very student-centric. So many of the things we do are focused not only on the typical on-the-field things, but also in terms of developing the total student. We’re the first conference to put in place a conference-wide mental health program. It focused on education and on access and on helping to demystify all the issues around mental health problems. What we learn is that it’s an issue across society. So many students in general - not just student athletes - are dealing with it. For an athlete to be at their best, they need to be not only physically fit but mentally fit as well. We just also as a league initiated a conference-wide diversity and inclusion program with an emphasis on helping to bring more diversity to being coaches or administrators. Burns: I recently had the opportunity to see the MAC championship game. You announced a five-year

overall commitment with Ford Field. Do you sense the transformation that’s going on in Detroit? Did that impact your decision to stay at Ford Field? Steinbrecher: Absolutely. I’ve been with the MAC for nine years. To see the transformation in what’s going on in Detroit from when I came on board to today - it’s picking up steam. The number of new shops and restaurants downtown has become more and more of a dynamic place to be. I live in Cleveland. It’s going through a similar process. It’s wonderful to see both of these cities pick themselves up, re-invest in themselves and have other people reinvest in them. Burns: How cool is it in this NFL season to see some of the biggest stars every Sunday are MAC graduates? Steinbrecher: We’ve got over 90 MAC players on active NFL rosters. Three of the past five years we’ve had Top 5 draft choices; it points to the quality of our teams. Our folks can go out and play with anyone in the country.

1/2/18 1:21 PM

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 8 , 2 0 1 8

PEOPLE

SPOTLIGHT

EDUCATION

NONPROFITS

J Patricia Swanson to vice president, chief marketing and enrollment officer from interim vice president, chief marketing and enrollment officer, Walsh College, Troy.

J Robert Warfield to chief operating officer from executive director, Bing Youth Institute, Detroit. J Bob Sadler to communications manager, MotorCities National Heritage Area, Detroit, from independent consultant, Sadler Communications, Dearborn.

MANUFACTURING J Francisco Flores to aerospace market development manager, Marposs SpA, Auburn Hills, from product support technical adviser, Williams International Corp., Walled Lake.

LAW Daniel Hegner to partner from associate, Bejin Bieneman PLC.

J Katherine L. Pullen to partner from associate, Warner Norcross & Judd LLP, Southfield. Also, Douglas A. Dozeman has been re-elected as managing partner for a second twoyear term. J Ronda Tate Truvillion to shareholder from partner, Lewis & Munday PC, Detroit.

To submit news of your new hires or promotions to People, go to crainsdetroit.com/peoplesubmit and fill out the online form.

DEALS & DETAILS ACQUISITIONS & MERGERS Huron Capital Partners LLC, Detroit, has sold its controlling interest in Systems Holdings Inc., a manufacturer of loading dock equipment, to The Chamberlain Group Inc., Oak Brook, Ill. The sale marks the first exit for The Huron Fund IV LP. Also, Huron Capitol announced that its information technology solutions platform, InterVision Systems, has acquired Independent Technology Group, Westlake Village, Calif., an integrator of networking, storage and security services. Websites: huroncapital.com, chamberlaingroup. com, intervision.com, itgweb.com. J

EXPANSIONS J 1st Source Servall, Center Line, an appliance parts distributor, has opened its first California-based warehouse. Located at 2247 N. Plaza Drive, Suite D, Visalia, Calif., the facility’s 35,000 square feet of storage space will house thousands of parts by major appliance manufacturers, allowing the company to offer two-day ground shipping in most parts of California, Nevada, Oregon and Washington. Website: 1stservall.com.

NAME CHANGE J

The Most Group, Southfield, a

health care technology company, is now operating as Simplify Healthcare. The company launched a new website to coincide with the announcement. Website: simplifyhealthcare.com.

NEW PRODUCTS J Reese, Plymouth, a manufacturer of towing products, introduced the M5, a fifth wheel hitch with the Talon jaw system, available in spring 2018. The Reese brand is a division of Horizon Global Corp., Troy. Websites: reeseprod.com, horizonglobal.com.

Submit Deals & Details items to cdbdepartments.com

Jill Ford leaves Detroit for Toyota AI Ventures

Jill Ford, the head of entrepreneurship and innovation in Detroit, has left the city to become principal of Toyota AI Ventures in Silicon Valley next month. With Toyota's $100 million venture capital fund, Ford will be focusing on investing in companies Jill Ford working on robotics, artificial technology and indoor and outdoor mobility. She will also continue to be an unpaid volunteer adviser to the city, she said. During her time in Mayor Mike Duggan’s administration, Ford helped launch the Motor City Match program, which awards $500,000 in business grants to small businesses in Detroit every quarter. Before joining the Duggan administration, Ford was an angel investor and worked with Disney Mobile, Motorola Solutions Inc., Microsoft Corp. and Ghana New Ventures Competition.

Owens leaves Chronicle for Wayne County post

Award-winning journalist and columnist Keith Owens is leaving journalism for public service. The senior editor of the Michigan Chronicle was to join Wayne Coun-

ty on Monday as deputy communications director for Wayne County Executive Warren Evans, replacing Whitney Lewis, who will become communications director of the county's public services department. The Chronicle did not immediately announce a successor to Owens. Owens is to handle messaging for the county executive for an $85,000 salary. His responsibilities include examining news coverage, overseeing social media, blogging and drafting talking points and news releases, he said.

CultureSource director arts council chair

Michigan Gov. Rick Snyder has appointed CultureSource Executive Director Omari Rush to chair the Michigan Council for Arts and Cultural Affairs. Rush, 37, succeeds Drew Bucholz, senior charitable gift officer of the Interlochen Center for the Arts in Traverse City, Omari Rush who had chaired the council since 2013. Rush will serve as chair for a term expiring at the pleasure of the governor. He has served as a member of the council since 2010 when he was appointed by former Gov. Jennifer Granholm and as vice chair since 2013.

ADVERTISING SECTION www.crainsdetroit.com/onthemove

FINANCE

HUMAN RESOURCES

David Praet

Angela Barr

Director

Director of Finance and Human Resources

Doeren Mayhew Capital Advisors Middle-market investment bank Doeren Mayhew Capital Advisors announced the promotion of David Praet to Director. Praet possesses 10 years of investment banking, consulting, and corporate finance experience obtained with the investment bank and its CPA affiliate Doeren Mayhew. Since joining the investment bank, he has focused on mergers and acquisitions including buy-side and sell-side advisory, divestitures, debt and equity capital raising, and recapitalizations.

To place your listing or for more information, please call Lynn Calcaterra at (313) 446-6086 or email lcalcaterra@crain.com

Ulliance, Inc. Angela Barr is responsible for the development and execution of Ulliance’s strategic financial planning and reporting, with a focus on expanding in existing and new markets. Prior to joining Ulliance, Barr was regional operations supervisor/ accounting operations manager at Brown & Brown, an insurance intermediary. Angela is a Certified Public Accountant (CPA) and holds a Bachelor of Accountancy and Business Administration degree from Walsh College.

ENGINEERING & CONSULTING Patrick Droze

Kirk Loveall

Jessica Katers

Partner

OHM Advisors

Patrick Droze, PE has been elected partner of community advancement firm OHM Advisors. Patrick has been instrumental in launching the firm’s downtown Detroit office, but his passion for the Motor City extends beyond OHM Advisors’ walls. He is a passionate advocate of the revitalization of Detroit, a regular supporter of local community improvement programs, and a volunteer tour guide with Preservation Detroit. Patrick holds a B.S. in Civil Engineering from Michigan State University.

Kirk Loveall, PE elected as partner of community advancement firm OHM Advisors. As OHM Advisors’ site design group director, he guides the firm’s site and land development teams in the successful delivery of hundreds of large-scale, multi-million dollar development projects on behalf of private clients and public municipalities. He is a graduate of the University of Michigan with bachelor’s degrees in both Architecture and Civil Engineering and a master’s degree in Civil Engineering.

TECHNOLOGY Gary Corbin Executive Vice President, Corporate Development

OpTech OpTech, an international technical consulting and talent firm, named Gary Corbin as executive vice president of corporate development. Corbin will deepen OpTech’s enterprise strategies and further develop its portfolio of regional and national accounts. Corbin brings over 25 years of experience in growing businesses and leading high-performing teams in technology and finance. Corbin held leadership positions with Accenture, Arthur Andersen, EDS, Deloitte, and Chase Bank.

Jessica Katers, PE was elected as a member of OHM Advisors’ shareholder team. A graduate from the University of Michigan College of Engineering, she manages some of the community advancement firm’s oldest and largest municipal accounts. Jessica is deeply involved with the American Public Works Association (APWA), where she currently chairs both the Great Lakes Expo and the awards program for the Michigan chapter, after twice serving as Detroit Metro branch president.

KNOW SOMEONE ON THE MOVE?

For more information or questions regarding advertising in this section, please call Lynn Calcaterra at (313) 446-6086 or email: lcalcaterra@crain.com

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 8 , 2 0 1 8

POSITIONS AVAILABLE

JOB FRONT POSITIONS AVAILABLE

SAP SUPPLY CHAIN CONSULTANT FOR RAYNET AMERICAS, INC. IN ROCHESTER HILLS, MI. Duties: Implement & improve SAP-based supply chain processes & flows, inc’l disseminating funct’l & dev specs; gather reqs & analyze existing ERP sys capabilities, & act as SAP app specialist in MM & SD, inc’l defining & implementing assoc bus & logistics processes; define, configure, test, & implement new SAP logistics sys, inc’l deploying projects & leading full life-cycle SAP implementations, & supporting all req’d bus changes & end users; dev & improve supply chain processes in areas of procurement, inventory control, physical inventory, invoicing, picking & placement, & Radio frequency supported processes; take care and support EDI integration; recommend new SAP functionality & processes to mgmt based on exp & expertise; dev & maintain docs rel to bus apps & configurations; design & prepare end-user training materials & work instr; conduct user training sessions in SAP; 20% travel, both dom & int’l. Req. Bach Deg in Comp Sci/IT, Business, or an Eng’g discipline, or foreign equiv. 1 yr exp in an SAP supply chain analyst or consulting pos’n. Six months exp w/ each of: end-to-end SAP project implementation, inc’l configuring & customizing SAP MM & SD modules, & providing post-project support; integrating SAP MM/SD modules w/ SAP QM, LE, & PP modules; change mgmt & organizational devel’t for SAP-based logistics sys, inc’l providing training & audit compliance; data conversion w/ LSMW, & external app interfacing utilizing IDOC; root cause analysis of auto logistics-related issues, inc’l value stream & process mapping of supply chain ops using lean principles; total cost-basis optimization of auto logistics & production ops, inc’l accounting for variations resulting from internal customer RFQs, eng’g changes, & deviations. Exp can be acq’d concurrently. Resumes: Fanny.Leydier@araymond.com. Identify SAP Supp. Chain Consult. pos’n. EOE

Harman Connected Services

1 Position: Senior Software Engineer, Job Code SSE-M04 Job Duties: A SW engineer this position will focus their time design & dev Android Apps/Services for Automotive Infotainment proj. should have a strong u’standing of Android operating sys (App &FW). should have exp in C/C++/Java dev for IVI systems; passion for dev new prod & exp working the complete SW development life cycle. Analyze cust & internal req & specifications & trans these into SW designs. Analyze exis SW to add features, make modifications, fix bugs, and/or port to dif platforms while adhering to SW design & coding best prac Tests SW des & code at the unit & sys level to insure that all req are met & the highest SW quality is achieved. Work with Harman domain teams to define interfaces b/w compo. Parti in internal & cust driven design & code rev throughout prog. Provide tech leadership in Android HMI proj. Support and mentor less experienced peers by sharing k’ledge in Android and related tools to carry-out their activi incl occasional travel for training or coordination with other groups. Works with the cust to further define req and to resolve issues Bachelor’s deg (or foreign equi) in Comp Sci, Eng, Info Tech or related & 5 yrs of work exp in SW design & dev on Mobile Smartphone platform and/or In-Vehicle Info platform in langof C/C++ & Java. Alt: Master’s deg (or foreign equ) in Comp Sci, Eng, Info Tech or related & 5 yrs of work exp in SW design & dev on Mobile Smartphone platform and/or In-Vehicle Info platform in langof C/C++ & Java. Exp must inc: Exc skills in Object Oriented Prog & Object Oriented Design. Min 2 yrs of exp of UI FW dev for In-Vehicle Infotainment or smart phone. 2 yrs of exp in Android FW & apps dev. Exp in info HMI or Mobile dev GIT & GERRIT UML Excel prob solving skills with exp of using sys analysis & profiling tools for debug & performance optimizations. Please send resumes to: Harman Connected Services Inc, Attn: Gokulakrishnan Deivanayagam/Job Code SSE-M04, 2002 156th Avenue NE, #200, Bellevue, WA 98007. Work Location: Novi, MI May have long term assignments in other locations in U.S. including Livonia, MI areas

MARKET PLACE

WORKERS COMPENSATION BUSINESS DEVELOPMENT MANAGER Team Rehabilitation, a network of outpatient PT clinics has a great opportunity for a Workers Compensation Business Development Manager. Position is to generate Workers’ Comp physical therapy referrals by calling on physicians with a heavy concentration of patients covered by workers’ comp or auto insurances. Sell the advantages of partnering with Team Rehab to case managers, adjusters, insurance companies, corporate and municipal employers. We offer an excellent benefits package, competitive salary, and performance bonuses. It’s an exciting time to join the company that was voted the #1 Workplace in 2017 by the Detroit Free Press.

POSITIONS AVAILABLE

Application Development Associate Manager (Multiple Positions) (Accenture LLP; Southfield, MI):

Catina Kristofik at 586-299-1088 or catina.kristofik@team-rehab.com

Develop, design, and maintain software products or systems to enable client strategies. Must have willingness and ability to travel domestically approximately 80% of the time to meet client needs. For complete job description, list of requirements, and to apply, go to: www.accenture.com/us-en/careers (Job# 00538936)

HARMAN CONNECTED SERVICES 1 Position: Senior Principle Product Engineer Job Code SPPE-01

Microsoft Corporation currently has the following openings in Southfield, MI (job opportunities available at all levels, e.g., Principal, Senior and Lead levels).

For more information, please contact:

Job Duties: Will be prime technical contact for taking part in collec req, feasibility study & analysis & architectural design & execution. Featuring data-aggregation sys dev by u’stand critical data factors based on the OEM & prod for prod-anal from usability & prod refinement perspectives. Taking part with pre-engag techl discus/commun with internal Business Anal & various OEMs across geo area. Existing/Proposed Info Prod Study for feasibility of big-data analy impl. Build & manage internal interaction with other prod teams at Distinguished Eng, SW Director, SW Domain Manager, Tech Arch & Domain Leads levels. Taking lead in solution imple i.e. designing & exec data aggre apps for big-data anal & model in car infot sys Work with individual dom dev teams for data aggre coverage from perspective of all domains Co-ord with various teams like offshore, onsite & cust teams in & outside the US. Ens overall success in dev of data-aggre P’form (i. e. working with QA, pre-launch validation teams (manual & automation) for end-to-end coverage of vari dom of prod & succes big-data report generations) Ens the deployment of SW deltas using OTA proc or other means Manage exec risks proac, identify exe risks & co-ord meet with multi disc func to address risks before they become issues. Hand post-launch prod maintenance & feature enhance Supp inter Sales Teams for cust demo & further busi oppo prep. Lead the prog adher to follow s’dard proces & metrics to m’tain prog & prod rel docu. primary tech touch point from big-data point of view for var prog commu with other prod teams. Req: Bachelor’s deg (or foreign equi) in CompSci/Math or close rel degree with 10 Yrs of prog tech exp; at-least 7 yrs car infot sys SW dev & rest can be any other SW dev dom. Alt: Master’s de (or foreign equi) in CompSci/Math or close rel degree with 8 yrs of prog tech exp; at-least 5 yrs in car infot sys SW dev & rest can be in any other SW dev dom. Exp SW mgmt exp in dev car Infot sys apps Exp with des & deli of infot app SW (both car & motorcycle) to various automotive OEMs (at-least 5 OEMs) in & outside of US. SW Dev Life Cycle pha like dev, test & SW integ. Exp in data-aggre app dev for big data analytics & modeling study & k’ledge in cloud comp web serv, tools & tech. Exp/Train/Cert in Proj mgmt &Quality Sys rel. Infotainment dom: HMI, Media, SWDL, Diagnostics, Apps Integ, OTA & data analytics. Prog Lang & scripts: C/C++, Java Script/VB Script/Lua etc. RTOS: QNX 6.5.0 & 6.6.0 - IDE: Eclipse or Momentics SW and HW protocols: [SW] IPC meth, TCP/HTTP, MQTT; [HW] CAN, MOST & Vehicle Diagn (KW2000) - Infot prod SOCs: OMAP, SH4, Intel, V850, ST10 or rel. Web: AWS web serv, Amazon S3 & RedShift d’base - Debug/Flashing tools/SWs: JTAG, NECFlasher, BIOSControl_MP etc. Req mgmt & bug tracking: Rally, JIRA.

BUSINESS

Customer Success Manager: Enhance the customer rltnshp from a capability dev perspective by articulating the value of our srvcs. Dom travel up to 25%.

https://jobs-microsoft.icims.com/jobs/9629/go/job Multiple positions available. To view detailed job descriptions and minimum requirements, and to apply, visit the website address listed. EOE.

Call or email today for information on a custom advertising plan!

cdbclassified@crain.com

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SURVEY ANALYZE MATCH

Apply: send your resumes to: Harman Connected Services Inc. Attn: Gokul; Job Code SPPE-01 ~ 2002 156th Ave NE #200, Bellevue, WA 98007. Work loc: Novi, MI, may have long term assignments in other loc in U.S. incl Livonia, MI area.

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C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 8 , 2 0 1 8

TALENT FROM PAGE 3

$10 million for training K-12 teachers to teach computer science and IT courses. J $10 million for marketing campaigns to woo “university and community college students in Michigan and target-rich Midwest markets to tout the benefits of staying and putting their talents to work here in the new, reinvented Michigan.” The funding also would be used for advertising IT career options to high school juniors and seniors. J $5 million in grants for expanding existing programs through the Michigan Initiative for Cybersecurity Education, modeled after the robot-building FIRST Robotics competitions high school students participate in. Snyder will present legislators with his final budget request next month and funding the initiatives spelled out in the proposal submitted to Amazon are expected to be a cornerstone of the business-oriented governor’s spending plan. “Several of the components in the Amazon bid for Detroit are relevant to the governor’s idea for a Marshall Plan for Talent, and are important to help lead the state’s workforce into the future whether Amazon builds HQ2 here or not,” Snyder spokesman Ari Adler said. “We need to invest in our workforce and Gov. Snyder plans on doing that however possible, and convincing others in the public and private sector to do so, as well.” Crain’s first reported Dec. 20 that Detroit’s response to Amazon’s request for proposals for a second headquarters included a state commitment from Snyder of $120 million to expand the J

A 242-page spiral-bound book contains the proposal to Amazon for why it should put its second headquarters in Detroit.

state’s tech workforce. “As part of the Amazon HQ2 proposal, the state is launching a comprehensive set of 10 complementary programs designed to meet the workforce needs of tech companies,” the summary document says. “This suite of programs — which will bolster STEM (science, technology, engineering and math) education and increase the number of tech graduates in Michigan — cover a spectrum from K-12 through post-secondary to life-long learning/continuing education.” The governor’s spokesman told Crain’s last month that $95 million is initially needed — a budget request that is subject to approval by the Legislature. Snyder’s detailed talent-development plan was included as an addendum to Detroit’s nine-page response to Amazon’s request for proposals, according to sources involved in crafting the proposal.

Those documents were attached to a 242-page sales-pitch book businessman Dan Gilbert’s companies produced for Amazon executives showcasing metro Detroit and Windsor’s quality of life amenities, access to talent, increased mass transit options and real estate options on both sides of the Detroit River. Gilbert chaired the Amazon bid committee and used the pitch to offer a reimagined downtown with new office buildings lining the riverfront and other under-developed tracts of the center city. Snyder has been publicly talking about the need for a “Marshall Plan for Talent” since at least late September when he used that term in an on-stage interview at the Michigan Republican Party’s biennial leadership conference on Mackinac Island. The original Marshall Plan was the multibillion-dollar program conceived by Gen. George Marshall to help rebuild Europe after World War II.

The governor has signaled that Michigan’s education system needs a targeted set of programs to address shortages in talent for careers in IT, coding and computer-driven advanced manufacturing. In early October, Snyder said he would pursue a new state-funded career and technical training program as part of the Amazon pitch in lieu of asking lawmakers for creating more tax incentives beyond what current law already allow the state to offer. “Let’s look at Amazon as an opportunity to highlight our need to get more IT people, more logistics people, many of these fields and create a Marshall Plan to say how do we ratchet up that number in terms of young people and people looking for a great career to get into these fields much faster,” Snyder said Oct. 6 after a “Manufacturing Day” event in Detroit. The governor’s spokesman said the plan submitted to city officials as part of the Amazon HQ2 bid was done in collaboration with educators and business leaders and is still to be refined before Snyder rolls it out in detailed policy proposals. Snyder gives his final State of the State address to the Legislature on Jan. 23. His annual budget presentation to lawmakers is expected to occur in early February. “You will hear more about (it),” Adler told Crain’s. “... As we look forward, the idea is how do you get government, business and the education community working in harmony to create a workforce for the future. Everybody has to be on board if this is going to work.” Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood

Electronic Payments, Data Privacy and Security Law Experience

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SHOW FROM PAGE 3

We think it’s unique for auto shows, globally.” Leading that push, from the industry to the auto show, is the rapid innovation of connected and autonomous vehicles, hinged completely on the buzzword, and very real future business models, of “mobility.” The auto show is expanding its Automobili-D showcase in January to feature 150,000 square feet of mobility-focused software and hardware from established suppliers and automakers as well as more than 150 startups from around the world. The showcase will also extend into the first weekend of the public show for the first time with a hiring event. The Michigan Economic Development Corp. is also hosting a matchmaking event during press week to align automakers, suppliers, startups and venture capitalists in prescheduled meetings. Detroit-based startup accelerator Techstars Mobility will also play host to startups and led the formation of the Mobility Advisory Board for Automobili-D at the show, intended to help lead startups to opportunities. Members of the board include Mark De LaVergne, chief mobility officer for the city of Detroit; Diane Lansinger, CEO and co-founder of mobility software maker Seeva; and Marc Weiser, managing director of RPM Ventures, among many others. A consortium of universities will also be part of the Automobili-D portion of the show, including University of Michigan, Michigan State University, Massachusetts Institute of Technology, Clemson University, Stanford University, Ohio State University, etc. The show will kick off Saturday with its annual Gallery event, which features a $10 million collection of 28 ultra-luxury cars. However, this year The Gallery is at Cobo Center instead of MGM Grand Detroit Casino, as it has been the past few years. Also different is about a dozen of those luxury vehicles will have dedicated space in Cobo Center during the entire auto show. Elaine Chao, U.S. secretary of transportation, will keynote the opening of press days on Sunday. Intel, Mercedes-Benz and Ford will also do their public unveilings during the opening evening. Ford’s press event will be inside Cobo Center for the first time in nearly a dozen years after stints in Cobo Arena and then Joe Louis Arena. On the show floor, nine new displays from automakers will be present, to the tune of $50 million, Muncey said — from Audi, BMW, Lincoln, Buick, Infiniti, Nissan, Kia, Acura and GAC. “This is all under one roof,” Muncey said. “This show is really going to serve as proof points for the show and the industry and only better position us for the future.” Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

BANKRUPTCIES

Contact Jill Miller at jmmiller@varnumlaw.com

Detroit

Novi

Grand Rapids

Kalamazoo Ŷ Grand Haven

Lansing

Ann Arbor

Hastings

The following business filed for bankruptcy protection in U.S. Bankruptcy Court in Detroit Dec. 29-Jan. 4. Under Chapter 11, a company files for reorganization. J Villa Properties LLC, P.O. Box 3427, Southfield, Voluntary Chapter 11. Assets and liabilities not available.

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VISTEON FROM PAGE 1

He vowed the company wouldn’t miss the next evolution of automotive technology. Lawande hired an engineering team that now numbers 100 people to create DriveCore, a departure from competitors who have tried to add technology talent by buying other companies. Until now, that team has been mostly kept quiet. “We know people will say we have no capabilities or experience in this space, but about a year and a half ago, we created a completely separate unit to focus on this and this only,” Lawande said. “I’ve had to make a lot of tough decisions (like eliminating its former R&D team) because we weren’t innovating in the right areas. For us, this is a big bet, but if we’re able to fundamentally change Visteon and prove this (DriveCore) out, we’re going be successful.”

Regroup and rebuild After spinning off from Ford, the electronics and interiors supplier never posted an annual profit before entering bankruptcy in May 2009. It was plagued by board infighting, under then-CEO Don Stebbins, over the direction of the company. Board member Timothy Leuliette replaced Stebbins as CEO in 2010 after he was fired by the board. Leuliette triggered a flurry of M&A activity by selling off Visteon’s climate businesses to focus exclusively on interior electronics. In December 2014, Visteon agreed to sell its 70 percent stake in its Korean joint venture Halla Visteon Climate Control to an affiliate of Korean private equity firm Hahn & Co. and Hankook Tire Co. for $3.6 billion. In November 2014, Visteon completed the largest phase of a deal to transfer its automotive interiors business to Dutch firm Reydel Automotive Holdings BV. Reydel is held by New York private investment firm Cerberus Capital Management LP, former owners of Chrysler. Visteon also sold its 50 percent stake in Duckyang Industry Co. Ltd. to Duckyang’s management for $24.1 million, or 25.9 billion Korean won, and acquired Johnson Controls Inc.’s Plymouth Township-based electronics business for $265 million in 2014. The result was a smaller, streamlined Visteon. The supplier reported revenue of $9.54 billion in 2010, but the paring of businesses brought that down to $3.16 billion in 2016. Lawande was named Leuliette’s successor in June 2015. In an inter-

SIMONCINI FROM PAGE 1

For all that and for raising his voice to be one of Detroit’s most important advocates, Crain’s names him our 2017 Newsmaker of the Year. Simoncini was born on Detroit’s east side, attended Clark Elementary between Mack Avenue and Outer Drive, graduated from Wayne State University and remains one of the top fundraisers for the United Way for Southeast Michigan. He also serves on the boards of Wayne State

Visteon tested DriveCore at the American Center for Mobility in December.

VISTEON

view with Crain’s at that time, Leuliette said the time had come for Visteon to find direction. “I’ve been here to live with the selloff, to clean up the business,” Leuliette said. “The bets we’re going to be making on software, those are a three- or five- or seven-year bets, and the guy who makes those bets should be here to live with those decisions. From a cleanup perspective, it’s about done. … This is not your fathers’ Visteon.” Lawande, 50, spent a decade in automotive electronics roles before arriving at Visteon. Most recently, he was president of the infotainment unit of Harman International Industries. He came to Visteon to give it purpose, one purpose: Find Visteon’s niche. “I, generally, believe in finding a space where not everyone is focused, and I think we’ve found it” with SmartCore and DriveCore, Lawande said. “We had not invested in core capabilities on the software side. I had to make some very fundamental changes to the company’s structure. This is not the same company as it was a few years ago. We’re focused on Visteon 2.0, and we’re doubling down, and it’s going to pay dividends.” The vision is even reflected in Visteon’s stock listing. In December, Visteon transferred its stock listing from the New York Stock Ex-

The move to domain controllers for autonomous vehicles may prove to expand Visteon’s top line. The market for domain controllers linked to advanced driver-assistance systems is expected to grow to 20 million units by 2023, according to Southfield-based IHS Markit forecasts. That’s a larger number than the growth of cockpit domain controllers for the infotainment, HVAC, etc., which is expected to reach roughly 8 million units by 2026, IHS forecasts. Mark Boyadjis, principal analyst and manager of automotive user experience at IHS Markit, said what Visteon sees as risk is a shrewd and, probably, a necessary move due to automaker demands. “With every new feature (on a car) comes a new electronics control unit and (automakers) are at their wits’ end,” Boyadjis said. “Now with these domain controllers, they

see a way to combine the ECUs with less complexity and less cost. It’s of strategic importance for Visteon to be doing this because, like their peers, they were beginning to offer these domain controllers in the cockpit that were essentially eliminating hardware they were supplying. Everyone is asking how this won’t affect their bottom line and the answer is to produce them for more than just the cockpit.” Domain controllers are expected to reduce ECUs from 60 to 100 today in semi-autonomous cars to as few as six in fully-autonomous cars of the future, Boyadjis said. But the market is saturated with juggernauts that have supplied ADAS systems for years and are poised to capitalize on those systems with their own domain controllers. Germany’s Continental AG and Robert Bosch GmbH, Troybased Aptiv PLC and Japan’s Denso Corp. are formidable competitors in that space. “Skepticism is legitimate, because the market is competitive,” said Steven Fox, managing director of New York City-based technology industry equity research firm Cross Partners LLC, which recently started tracking Visteon’s stock. “This is not without risk, but given how the industry is moving around autonomous cars, there’s more risk if Visteon stayed with its old business model.”

University Foundation, Detroit Economic Club, Business Leaders of Michigan, the Michigan Opera Theatre and The Parade Co. “I don’t have a master plan, I’m ready to get more involved and dedicate more time philanthropically,” Simoncini said. “I’ve not had a revelation and maybe it hasn’t sunk in that the run is over. This region is primed for growth. We need to raise awareness on why investing in education is not just charitable or philanthropic; it’s good for business. I see a role there for me.” He also plans to continue his role

as an informal economic and workforce adviser to Detroit Mayor Mike Duggan and for Dan Gilbert’s well-publicized attempt to lure Amazon Inc.’s second headquarters to the city. Simoncini said he’s preparing to engage Amazon executives on the benefits of hiring in the city if Detroit makes it past the initial round of cuts, which is expected sometime this year. “I think the next phase of this thing is going to require fine-tuning the pitch and the specific opportunities for Amazon,” Simoncini said.

“We know the geographic benefit and the infrastructure benefits of this region, but what we can do that’s different is leverage our core of automotive intelligence in the region. As they look to bring their products into the interior of the car, we can help them do that. That’s attractive to them. So getting guys like myself and others involved will be critical. I expect to be much more engaged on this in the near future.” But he’s aware his time as a business voice may be numbered after retirement.

change to the Nasdaq, where most technology companies trade. “Our move to Nasdaq, where we will join many other growth-oriented technology enterprises, is consistent with our transformation to a software-focused tech company that is helping put the auto industry on a path toward the digital cockpit and autonomous driving,” Lawande said in a press release at the time.

Payoff or reckoning?

Lawande said while it plans to go head-to-head with automotive competitors, it made sure to avoid direct competition with Silicon Valley’s automotive entrants, like Google and Apple, by keeping its software open-source and allowing automakers to use whatever software they prefer. “When it comes to the big giants of Silicon Valley, they are extremely formidable, that’s why we spent a lot of time where we felt we could operate,” Lawande said. “Continental and Aptiv have no chance in competing against Google and neither do we, but we’re at the cusp of really exciting things for the company. We’re already in discussions with (automakers) about putting the DriveCore system in vehicles in the 2020 time frame. After 2020, we expect this to pick up and become a significant portion of our business.” But Visteon has to deliver on a massive backlog of business it secured through the JCI acquisition and the continued success of its SmartCore and its infotainment platform Phoenix, which already secured several contracts, and it’s expected to begin delivery this year. Its backlog was $18 billion as of Sept. 30, 2017, up from $16.5 billion at the end of 2016. “Visteon has a lot of momentum and they’ve been hitting their (earnings) targets,” Fox said. “I don’t see a reason they can’t continue that, but this will be a telling year for them. They are looking to grow their shipments pretty quickly over the next few years. If they don’t execute that could be concerning.” Yet Wall Street is all in on Lawande as a leader. “I’m a big fan of Sachin,” said Colin Langan, autos equity analyst for UBS Investment Bank in New York. “Visteon clearly didn’t have any direction when it spun out of Ford. But he’s laser focused and has provided the clearest vision of where the world is going in auto and making sure they are relevant in its history. Visteon has the same name, but it’s a different company under Sachin.” Visteon shares are up nearly 30 percent since Lawande became CEO in 2015, trading at $135 per share in Friday morning trading. “I’m optimistic about where we are,” Lawande said. “In Detroit, we’ve underestimated our capabilities. We have to know where we can compete and where we can collaborate. We’re not going to play a zero-sum game with Silicon Valley. That hasn’t worked out well for others. The Visteon I see will be more traditional than a Silicon Valley tech company, but a lot closer than others. We’re prepared for the autonomous future now.”

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Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

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“I would love to stay engaged with the mayor, but I don’t know what weight I carry as a former CEO,” he said. “I have vast experience on what it’s like to hire in the city of Detroit and its importance to the region, but I don’t know how hard-hitting I’ll seem after I’ve been out of the (CEO) chair for 18 to 24 months.” He’s also put his (company’s) money where his mouth is. At Lear, he led the company to open its $10 million Detroit Innovation Center in 2015, an idea to boost technological transformation for the company and a return to the city in which it was

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C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 8 , 2 0 1 8

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www.crainsdetroit.com Editor-in-Chief Keith E. Crain President KC Crain Publisher/Editor Ron Fournier, (313) 446-1674 or rfournier@crain.com Group Publisher Mary Kramer, (313) 446-0399 or mkramer@crain.com Managing Editor Michael Lee, (313) 446-1630 or malee@crain.com Product Manager/Marketing and Events Kim Waatti, (313) 446-6764 or kwaatti@crain.com Digital Product Manager Carlos Portocarrero, (313) 446-6056 or cportocarrero@crain.com Creative Director David Kordalski, (216) 771-5169 or dkordalski@crain.com News Editor Beth Reeber Valone, (313) 446-5875 or bvalone@crain.com Special Projects Editor Amy Elliott Bragg, (313) 446-1646 or abragg@crain.com Design and Copy Editor Beth Jachman, (313) 446-0356 or bjachman@crain.com Research and Data Editor Sonya Hill, (313) 446-0402 or shill@crain.com Newsroom (313) 446-0329, FAX (313) 446-1687, TIP LINE (313) 446-6766

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Signs at Como's back entrance announce the permanent closing of the Ferndale restaurant and bar.

COMO'S FROM PAGE 3

“The most important thing for them is to get this thing wrapped up because it is really not a good impression to have the corner of Woodward and Nine Mile empty and looking like crap,” Karp said. He expects it to remain a restaurant, citing difficulties with providing parking and the surrounding property. Whoever would want to redevelop the Como’s property, Karp said, would need a site immediately to the east owned by Joel Dorfman, a developer whose holding company, Bloomfield Hills-based North Star Partners, is the largest shareholder of Main Street Bank of Michigan. Dorfman, who did not return a message seeking comment, is a former Thorn Apple Valley executive. North Star in 2016 submitted plans to the city to turn its site into a four-story, mixed-use development with 27 apartments and about 2,000 square feet of first-floor commercial space next to its Lofts at 9 development immediately to the east. “It’s a great spot to do something like that (a large-scale development), but you’re talking probably a $40 million investment,” Karp said. Still, many others envision a founded as American Metal Products in 1917. He spends more of his remaining days in the city, working on transitioning leadership at Lear to his successor Ray Scott, current executive vice president and president of Lear’s seating business unit, effective March 1. “I’m definitely not making any long-term business commitments,” he said. “I’m really focused on offering my opinion on what I would do for the company and leaving it up to the team, led by Ray, to decide. It’s their time now.”

“It’s a great spot to do something like that (a large-scale development), but you’re talking probably a $40 million investment.”

CRAIN'S DETROIT BUSINESS

mixed-use project on the 0.34-acre Como’s site, a project that would be the latest in a string of new construction efforts the city has seen in recent years. Others include the Ferndalehaus project, expected to be complete in the third quarter, and a $32 million mixed-use project on 13 acres in Ferndale and Pleasant Ridge at 10 Mile Road and Bermuda Street north of downtown. Robert Gibbs, principal of Birmingham-based Gibbs Planning Group, which worked on Ferndale’s revised master plan adopted a year ago, said a project at the site would be a landmark in the city because of its location. “The site should be a flagship restaurant, coffee shop or retailers,” he said. “The new building should be five levels minimum, and eight to 10 would be ideal, given the width of Woodward.” And Matt Farrell, co-founder and

CEO of Bingham Farms-based real estate company Core Partners LLC, said a multistory project could incorporate office space, first-floor retail and residential. “The opportunity to put a better and more robust front door entrance off Woodward to attract the amazing traffic on Woodward to stop and enjoy what Ferndale has to offer could be increased,” Farrell said. The city updated its master plan last year, with the help of Gibbs Planning Group and Detroit-based architecture firm Hamilton Anderson Associates. It says the city has about 10,520 households, with 89 percent occupied and 60 percent of those owner-occupied and 40 percent renter-occupied. However, the overwhelming majority, approximately 80 percent, of the units are single-family detached homes more than 50 years old. The master plan says the downtown area can support 520 additional units in the next five years, with 83 percent of those being apartments, 9 percent being condominiums and 8 percent being townhomes. The study also says that 40 to 60 new retail businesses can be supported through 2022, along with 106,000 square feet of new office space in the next 15 years. Some of that is already underway.

The Ferndalehaus development at 430 W. Nine Mile Road, the site of the former Save-A-Lot grocery store, is expected to bring a new four-story, 105,000-square-foot building with about 90 apartments and nearly 11,000 square feet of retail and/or office space. The building is planned to have parking and the retail/office space on the first floor, with three floors of apartments above. The 10 Mile/Bermuda project, being developed by Iron Ridge Holdings LLC, which is registered to Gregory Cooksey, includes market space; a biergarten; a brewery; office, retail and fitness space; a fire suppression company; and 75 residential units. But, for the time being, the gateway to downtown will have to be a waiting game as purchase offers are entertained. “I couldn’t tell you what the future is going to be. I don’t have a crystal ball,” said Barry Hicks, executive director of the Ferndale Downtown Development Authority. “We looked at that Nine Mile and Woodward intersection, and we talked about going a little more vertical if possible.” “There’s plenty of value there on the corner of Nine and Woodward,” Siegel said. “I’m sure it will go for the highest and best use there.”

Simoncini also hopes Scott will be able to finish what he started, opening a new factory in the city. Lear, under Simoncini, has sought to create 500-1,000 new union-represented manufacturing jobs in Detroit for years, but was never able to reach a labor agreement under a new classification at a lower hourly rate than at its other plants. Simoncini said Lear could create those jobs in the city instead of Mexico if it could attain a new wage tier with the United Auto Workers that pays in the mid-teens per hour with some benefits. A specified pay rate

and benefits would need to be negotiated and are subject to moving up or down, the company had said. Lear currently pays $35 per hour, which includes the cost of benefits, at its just-in-time seating plants and upward of $25 per hour at its component plants. “It’s a disappointment I didn’t get it done,” he said. “I really thought we had some momentum to increase the manufacturing in Detroit. I wasn’t able to pull it off, but I don’t think it’s dead.” In fact, Simoncini believes the city is on the cusp of seeing more manu-

facturing investment, particularly after Flex-N-Gate opens its $90 million plant in the city this year. “Nothing breeds success like success,” he said. “Flex-N-Gate opened some eyes. I think others see that, and it’ll catch on. Look, I’m never going to stop advocating for the city of Detroit. This is the right time, whether it’s manufacturing, transportation or education. It’s really good business, and I’m not going to be quiet about it.”

Gaal Karp

Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

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Jeffersonian high-rise gets new owners

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he Detroit Lions are now Bob Quinn’s team. The general manager on Jan. 1 fired coach Jim Caldwell, the head coach he kept when he left the New England Patriots for Detroit in January 2016. Now, Quinn will be linked to whomever he opts to hire as his choice to coach the Lions to their ultimate goals: Becoming an annual playoff contender that wins postseason games and eventually wins the Super Bowl. Quinn told reporters the afternoon of Jan. 1 during a news conference at the team’s Allen Park headquarters that he determined late Dec. 31 that he would fire Caldwell, who finished his four seasons with the Lions as its winningest coach of the Super Bowl era. What it came down to, Quinn said, was the inability to beat winning teams. “We didn’t beat the really good teams. Our record against the better teams in the league has not been that good,” Quinn said during the news conference, which was broadcast live on the team’s website. “At the end of the day, I wanted to take this team to the next level.” Quinn said it was his decision, not ownership, to fire Caldwell: “The decision on Coach Caldwell was mine and mine alone.” Of Caldwell’s 36 wins as Lions head coach, just four — one each season — have come against opponents that finished the year better than .500, The Athletic noted in a recent story on Caldwell’s tenure. The Lions were 0-2 in the playoffs under Caldwell, and were in playoff contention this season until an upset loss at Cincinnati a week ago. Quinn believes he can find a coach who will do what the widely respected Caldwell could not. Quinn declined to confirm any of the names connected now with the Lions job, which include Patriots defensive coordinator Matt Patricia, who Quinn worked alongside in New England for several years. Other names that the Lions reportedly will interview include Houston Texans defensive coordinator Mike Vrabel, ex-Cleveland Browns head coach Pat Shumer who is now offensive coordinator for the Minnesota Vikings, and the Lions own defensive coordinator, Teryl Austin.

BUSINESS NEWS J Quicken Loans Inc.’s technology team has trained Amazon.com’s Alexa personal assistant to accept mortgage payments from its customers — and the Detroit-based online mortgage giant is toying with the idea of equipping its customers with the popular device. J Gus’s World Famous Fried Chicken opened in Royal Oak. It’s the Memphis-born chain’s third restaurant to open in metro Detroit in less than two years. J Downtown Detroit Markets, a popup shop market that spans several locations, has extended its run through Jan. 28 after outperforming expectations and may get new life in the spring and summer. J The Detroit News ended 2017 with-

T JACOB LEWKOW FOR CRAIN’S

The Detroit Zoo’s 2017 attendance of more than 1.5 million was just below the record set last year. It welcomed 1,560,981 visitors in 2017 — about 137,000 fewer than the previous year, according to a news release from the Detroit Zoological Society.

Detroit digits A numbers-focused look at last week’s headlines:

$951,461

The amount in state and federal tax liens the once popular and now closed Como’s pizzeria and bar in Ferndale has racked up since 2000.

The number of acres metro Detroit candy maker Sanders and Morley Candy Makers Inc. bought next to its Clinton Township headquarters for expansion.

513,100

The number of fans who attended the Detroit Lions' eight regular-season home games this season, setting a Ford Field record.

out any newsroom layoffs after two longtime staffers — Assistant Managing Editor Walter Middlebrook and sports copy editor Joe Adams — took a buyout offer first made in late November. J Detroit nonprofit Money Matters for Youth traveled to Cboe Global Markets in Chicago to ring the closing bell last Tuesday for the first day of trading in the new year. J Buddy’s Pizza is poised to grow outside Michigan with expertise and investment from a restaurant investment solutions firm, CapitalSpring. J The Detroit Pistons will debut their special edition, navy blue and gray “Motor City” uniforms Jan. 30 against the Cleveland Cavaliers as part of their celebration of moving back to the city. J A food kitchen from health brand Cooking with Que, the casual Ferne Boutique and other shops are filling in spaces along Woodward Avenue in New Center by the end of the QLine as Midtown Detroit Inc. continues to renovate, sell and build its presence in the Detroit neighborhood. J Automotive lighting and electronics supplier Hella KGaA Hueck & Co. will move into a new 115,000-squarefoot headquarters in Northville Township in early 2019. J Southfield-based digital marketing firm HelloWorld Inc., formerly ePrize Inc., has been sold by an investment arm of L Catterton to London-based Dentsu Aegis Network. J Auria Solutions opened its first North American headquarters in Southfield, moving 120 employees into the 28,000-square-foot offices at

26999 Central Park Blvd., near the Southfield Town Center, said David Ladd, the company’s senior director of marketing and communication. J Out-of-state investors purchased and are renovating 93 units in Great Lakes Tower along Detroit’s east riverfront. The $3 million project entails remodeling the units, which are then being sold as condos.

OTHER NEWS J Segments of I-696 in between I-275 and I-75 in Oakland County will undergo a series of shutdowns this summer for maintenance work. J Mayor Mike Duggan’s administration is moving forward with a plan to eventually mandate every retail business in Detroit have surveillance cameras tied into Project Green Light, the Detroit Police Department’s real-time crime monitoring system credited with a decrease in carjackings and overall crime around participating businesses. J As of Jan. 1, the QLine streetcar system runs until 2 a.m. on Fridays and Saturdays, until midnight Monday-Thursday and through 11 p.m. on Sundays. J Former Detroit Mayor Dennis Archer Sr. reflects on his career in law, business and government in his new memoir, Let The Future Begin. The book makes a subtle contention that his policies laid the groundwork for today’s resurgence. J The Suburban Mobility Authority for Regional Transportation launched on Jan. 1 its high-frequency, limited-stop seven-day FAST lines on the Woodward, Michigan and Gratiot routes. The FAST Michigan route will also connect downtown with Detroit Metropolitan Airport. J Internationally renowned designer Piet Oudolf has agreed to design a garden for Belle Isle on a 1.5-acre, grassy site near the Nancy Brown Peace Memorial Carillon and is open to additional commissions in Detroit. J Comerica Bank’s Michigan Economic Activity Index rose a modest 0.4 percent in October — its first increase since May — to 117.8.

OBITUARIES J John Portman, the architect of the Renaissance Center in Detroit and a developer who revolutionized hotel designs with soaring futuristic atriums, built commercial towers that revitalized the downtowns of American cities and transformed Asian skylines, died Dec. 29 in Atlanta at 93. J Renowned oncologist and longtime Karmanos Cancer Institute leader Vainutis Vaitkevicius, M.D., known as Dr. Vee, died Dec. 24 at 90.

he Jeffersonian apartment building on the east Detroit riverfront has a new ownership group that plans upgrades to the 1965 high-rise. The building, which has 421 apartments at 9000 East Jefferson Ave., was purchased by a joint venture between Joe Barbat and Arie Leibovitz last month for an undisclosed price. Individual units are expected to get updates to their kitchens and flooring and the lobby area is expected to get a coffee bar and a casual restaurant component by Barbat’s team at the Prime29 steakhouse in West Bloomfield Township. A new gym is also planned, said Barbat, who is the founder and chairman of Barbat Holdings LLC, a West Bloomfield Township-based real estate investment and management company, and Houze Living LLC. He is also the the CEO and chairman of West Bloomfield Township-based Wireless Toyz. He said the capital expenditure budget has not yet been determined and declined to detail the ownership structure of the joint venture with Leibovitz, a Southfield-based investor. Southfield-based Village Green will manage the property, which has one-, two-, three- and four-bedroom apartments, Barbat said. Wyandotte-based Thomas Roberts is the architecture firm on the project and the general contractor is Barbat's West Bloomfield-based Eagle Con-

COSTAR GROUP INC.

The Jeffersonian apartment building is at 9000 E. Jefferson Ave. in Detroit.

struction Services. “We will be starting on the renovations in the next couple months once the drawings are completed,” Barbat said. “The residents are not going to be interfered with and we are honoring all of their leases.” The building is about 90 percent occupied, Barbat said. The seller was Bingham Farmsbased Saperstein Associates. Barbat has been making inroads into Detroit real estate in recent years, redeveloping the annex of the St. Regis Hotel in the New Center area into the Regis Houze apartments, plus the former Hotel Briggs, which was turned into Briggs Houze, among other projects in the city. Marcus & Millichap Real Estate Investment Services Inc. represented Saperstein in the sale.

COBO CENTER

Cobo Center installed two Mamava lactation suites for private breastfeeding on Tuesday and Wednesday, ahead of the North American International Auto Show.

Cobo Center installs breastfeeding pods

obo Center has installed breastfeeding stations for the first time, ahead of the 2018 North American International Auto Show. The two private pods for nursing mothers were set up Tuesday and Wednesday. The plan is to use them for all events for the rest of the year. Burlington, Vt.-based lactation space designer Mamava created the pods, which it calls lactation suites, according to a Mamava news release. The portable 4-foot-by-8foot spaces have benches, folding tables, electrical outlets and lockable doors. “We understand the importance of supporting families and our goal with the Mamava suites is to provide

the best accommodations available for parents, whether they are employees or visitors to the facility,” Claude Molinari, general manager of Cobo, said in the release. Cobo declined to release the price paid for the suites. One is located in the main concourse and the other is on level three. The downtown Detroit exhibition venue announced the pods as part of its sustainability efforts in November. Plans also included installing signs to teach visitors about the Cobo Green program. Comerica Park and the Detroit Institute of Arts are among other major Detroit venues with lactation stations or nursing lounges.

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