Deal on Champion Bus property “having issues”

Property owner and Veptos disagree on final details

 

IMLAY TWP. — In August of this year, township officials reported they had received exciting news when an out-of-state company announced they intend to move their operations to the former Champion Bus facility located at 331 Graham Road.

According to the website of the company, Veptos workers assemble, repair, retrofit and modify military armored vehicles including Humvees, cargo trucks, tanks and fuel tankers for foreign governments of allies of the United States wanting to expand fleet capacities while doing the work at a more economical cost.

The former Champion Bus facility, located on Graham Rd. in Imlay Twp., has been identified as the new home of a Texas-based company that says they could be hiring over 400 workers, mostly skilled trades. Former Champion Bus employees were among those who potentially could be contacted for possible employment.

The facility on Graham Road, which closed in December, 2021 after operating for 40 years, has been considered by Veptos for several months, according to county officials. The location has approximately 190,000 square feet on 73 acres.

Lapeer Economic Development Director Sam Moore said he has not heard much in the way of new information.

“The last update I had was the group was having issues with the current property owner as it pertained to the lease/purchase agreement. Other than that I have no news, one way or the other,” Moore said in an email to the Tri-City Times.

An email to Imlay Twp. Supervisor Rick Farkas, seeking comment on any updates, has not been answered as of the publication of this article.

If an agreement on the property can be worked out, the new project by Veptos is expected to create roughly 420 new jobs with a total investment of nearly $20 million. It’s estimated starting wages for the project would be $21 an hour plus benefits, which is above the regional median wage of $20.61 per hour.

In addition, the company offers internal training for all welding, general automotive mechanics and vehicle painting, as well as industry certification for welding – so employees who start with the company can stay and grow with it.

In production since 2010, Veptos was acquired by Richard Najarian, president of Precision Global Solutions (in Troy, Mich.), in 2024.

In August of this year, it was announced the company would acquire the former bus manufacturing facility with the help of a $5 million Michigan Business Development Program (MBDP) performance-based grant approved by the MSF Board.

Funds are to be used to help with relocation costs. The relocation is being considered due to the company actively negotiating roughly $80,000,000 in new contracts.

In addition, Veptos plans to construct an additional 5,000 square-foot building on the Champion Bus property for concept vehicle research and development, if there is an agreement reached.

In a previous story in the Tri-City Times, Moore said company officials have said they have a strong desire to hire former Champion Bus employees that might still be in the area and want to come back to the facility.

At the time of the announcement in August, Imlay Twp. Supervisor Rick Farkas said he was, “very excited. 420 jobs is huge for the township and surrounding communities. Many of these jobs will be skilled trades such as welding and automotive and most training will be offered by Veptos in house, even certifying some of the skilled trades.”

He added, “An investment of this magnitude will set the stage for further development throughout the industrial corridor and the community as a whole. This has taken a lot of time and effort to put all of this together. I would like to thank Sam Moore from the Lapeer Development Corporation (LDC) and the Michigan Economic Development Corporation (MEDC) for coming together to help make this happen.”

Veptos, located in New Boston, Texas, was reported to be shifting its headquarters to Imlay Township and breathe new life into the vacant Champion Bus complex.

On July 29, the MEDC’s Michigan Strategic Fund board awarded a $5-million grant to Veptos to help offset relocation costs for the company’s move to Michigan.

Moore felt the former Champion Bus facility would be an ideal fit for Veptos’ operations while giving the Imlay Township/Imlay City area a considerable financial boost.

Veptos, who is world renowned for reimagining what’s possible in armored vehicle engineering, tactical mobility systems and defense-grade powertrains – is currently entirely based in Texas, and their relocation to Michigan sends a powerful message that Michigan is ready to power the next generation of defense-tech giants through its talent, supply chain and industry growth.

In a previous article, Richard Najarian, Managing Director of Veptos said, “This deal marks a major step forward as we kick off new military programs in support of the U.S. Department of Defense and our allies across the globe. The facility brings Veptos’ full production capabilities to Michigan – supporting everything from our Tactimod reset programs to next-gen defense systems, armored platforms and hybrid propulsion tech. Michigan blew us away with its deep talent, unmatched infrastructure and motor spirit. It’s exactly where we need to be to execute at scale and meet the unprecedented demands shaping today’s global defense landscape.”