The Institute for Advanced Vehicle Systems was established through a grant of $350,000 from the World Heritage Foundation - The Prechter Fund. Funding to support IAVS and related engineering related programs includes:

- $22 Million from the State of Michigan to support the construction of a new engineering building to house IAVS.

- A new grant of $800,000 over five years from Ford Motor Company to continue the work of IAVS.

- $324,000 from Ford Motor Company to support projects related to IAVS.

- $300,000 from BorgWarner to continue the work of IAVS.

- $250,000 from General Motors Corporation to support the development of the Institute and to fund projects related to the advancement of the automobile industry.

- $115,000 from ArvinMeritor to support projects related to IAVS.

- $87,500 from DaimlerChrysler Corporation to fund projects related to the advancement of the automotive industry.

- $83,000 from the World Heritage Foundation - Prechter Fund for fellowships to assist in the creation of a multinational technical team of student researchers.

- $69,000 from the American Plastics Council to support interdisciplinary studies by students of UM-D and CCS.

- $9,000 from individual contributions and corporate matching contributions.