The State of Michigan provided $22 million to construct a new engineering building for IAVS. The new building opened in the fall of 2006. It houses laboratories, offices, conference rooms, an auditorium, and other facilities. It expands IAVS' capabilities and offers industry the chance to have a specialized lab there that provides a low-risk and accessible environment for research benefiting students, faculty, and their own engineers.

Some of the facilities found in the new building include:
- High Bay Laboratory
- Student Projects and Design Lab
- Integrated Learning and Design Lab
- Automotive Electronics Lab
- Materials Analysis Lab
- Structural Crash Dynamics Lab
- Transmission and Hybrid Powertrain Lab
- Vehicle Ergonomics Lab
- Auditorium with seating for 220, named in honor of BorgWarner
- Conference Room, seating 18
- Conference Room, seating 12
- Second Floor Student Study and Meeting Area
- Offices for Principal Investigators, 13
- Offices for IAVS and CEEP Staff