Winter 2010
GM Could Reopen Tennessee Assembly Operations
While 1,000 workers continue to build engines at the former Saturn GM facility in Spring Hill, Tenn., locals there are excited by the prospect that assembly operations could resume at the idled plant soon. Mark Reuss, President of GM's North American operations, announced in January that the idled plant could be restarted because the domestic automaker cannot produce popular models fast enough after it restructured and closed several assembly plants last year. GM built Saturn models at the plant for more than 15 years but has not assembled vehicles in Tennessee since the last GM Traverse model rolled off the line in 2009.
Akebono on Expansion Jag in the Southern Automotive Corridor
Akebono Corp., which recently acquired Robert Bosch LLC's North American Brake Division, is adding 13,000 square feet of office space at its headquarter operation in Elizabethtown, Ky. The deal will add 70 new jobs. In addition, the company is consolidating former Bosch plants in the U.S. and Mexico to Clarksville, Tenn. and another facility in South Carolina. Akebono plans to invest $13.5 million in new equipment at the Clarksville, Tenn. plant with 300 new hires. Following its Tennessee brake plant expansion, Akebono announced plans to locate a new facility in Lexington County, S.C. The $35.6 million investment is expected to generate 283 new jobs.
Editorial
Toyota's Problems Not Good News for Mississippi
Toyota's multiple issues over quality control of its vehicles is not good news for the state of Mississippi where the Japanese automaker built an assembly plant in the northeast portion of the state that has never opened for business. In mid-February, Toyota announced it was cutting back production at its two other assembly plants in the Southern Automotive Corridor, one in San Antonio, Tex. and the other in Georgetown, Ky., because of a drop in sales related to the recall of eight million vehicles worldwide.
In early 2007, Toyota chose to build the plant near Tupelo, Miss. to produce the Highlander SUV model. When the SUV market collapsed, the Japanese automaker announced that the fuel-saving Prius model would be assembled at the plant. Then, on December 15, 2008, the company decided to idle the finished, but unequipped facility.
Toyota officials have said there is no timetable on when or if the plant will open. There were rumors prior to Toyota's giant recall that the company would start to assemble the Corolla model in 2011 at the Mississippi plant.
It is believed that incentive agreements made between state and local governments and Toyota require that the company invest $500 million in the project by the end of 2012. So far, Toyota has invested about $300 million in the plant. If the plant was equipped, reaching the $500 million investment threshold wouldn't be a problem. But, even if Toyota decided today to go ahead and start production at the plant, it would take at least a year to ready the facility.
It has been reported by other sources that because of the delay in opening the plant, Toyota will make an interest payment of about $10 million on bonds of $293 million that were issued to the company as part of the incentive package Mississippi gave the automaker. In addition, this year Toyota will make annual payments of $5 million for 10 years to school districts in northeast Mississippi.
mike@sb-d.com
ALABAMA
VW Supplier Fehrer Automotive Locating in Gadsden, Ala.
Kitzingen, Germany-based Fehrer Automotive announced in February it will locate in the former Advance Auto Parts building in Gadsden, Ala. to supply the new Volkswagen plant being built in Chattanooga with seat pads. The company will also supply the Mercedes-Benz plant in Tuscaloosa, Ala. with the same product. About 100 jobs are expected to be created in the deal.
ARKANSAS
Auto Parts Supplier Expanding in Arkansas, Creating 250 New Jobs
Saint Jean Industries, an auto parts manufacturer and supplier, announced in January that it will expand its manufacturing plant in Heber Springs, Ark. creating about 250 new jobs with an investment of $14 million. The Heber Springs plant makes aluminum parts for the automotive industry. France-based Saint Jean said the expansion is a result of several significant orders placed with the company, specifically from ZF, a German supplier to Ford and GM.
GEORGIA
Yazaki Locating NA Headquarters in Georgia
Yazaki Corp., based in Iwata, Japan, will locate its North American headquarters in Gainesville, Ga. in Hall County. The company manufactures fuel tanks for original equipment manufacturers. Yazaki will initially employ 20 workers.
Welding Robot Supplier Sets Up Shop in Atlanta
Germany-based Nimak Gmbh, which makes welding robots for automotive assembly factories, is setting up an office in Atlanta. The company has installed about 800 welding robots at the Mercedes-Benz facility in Tuscaloosa, Ala., and is installing about 400 at the new Volkswagen plant being built in Chattanooga, Tenn.
MISSISSIPPI
Parker Hannifin Expands Mississippi Operations
Parker Hannifin, a leader in motion control technologies and systems, announced in February the expansion of the company's Batesville, Miss. operations. The expansion accommodates additional production of refrigerant control and containment components for automotive, heavy-duty truck and off-road air conditioning applications. The expansion will create 50 new jobs.
SOUTH CAROLINA
Proterra Selects S.C. for Hybrid Commercial Vehicle Facility
In February, Proterra Inc., which develops and assembles drive and energy storage systems for heavy-duty vehicles, including their BE-35 fast-charge battery electric bus, announced that it will locate a facility at the Clemson University International Center for Automotive Research (CU-ICAR). The project will include research and development as well as assembly of its vehicles. The company designs, develops and assembles all electric and battery dominant hybrid drive solutions and complete vehicles for commercial applications including transit, school and commercial buses, parcel delivery vehicles and other class 4-8 trucks. Proterra, which looked at sites in 30 different states before choosing Greenville County, S.C., expects that it will invest $68 million and create more than 1,300 new jobs in the project.
Fisher Barton Expands in South Carolina
Fisher Barton, an OEM supplier of precision metal stampings and welded assemblies for the automotive industry and other sectors, announced it will expand its Laurens County, S.C. facility. The $2 million investment is expected to generate 15 new jobs.
MTU Diesel Investing $45 Million in Aiken, S.C.
MTU Detroit Diesel announced in the winter quarter it will establish a new manufacturing facility in Aiken County, S.C. MTU Detroit Diesel, a subsidiary of the Germany-based Tognum Group, anticipates that its project will require a $45 million investment and the creation of 250 new jobs. The company produces propulsion systems and energy systems based on diesel and gas engines, gas turbines and fuel cells for military, marine, rail, agriculture, heavy industrial and power generation applications.
TENNESSEE
DOE Closes Electric Car Loan Agreement with Nissan
Secretary of Energy Steven Chu announced in February that the Department of Energy has closed on a $1.4 billion loan agreement with Nissan North America that will bring production of the Nissan LEAF model and its batteries to the Japanese automaker's massive plant in Smyrna, Tenn. The LEAF is a zero-emission, all-electric vehicle. Most of the proceeds of the loan will be spent on development and manufacture of the lithium-ion battery packs that will power the LEAF. The loan, which originated through the Department's loan guarantee program office, was issued as part of the Advanced Technology Vehicles Manufacturing Loan Program, a $25 billion program authorized by Congress as part of the Energy Independence and Security Act of 2007. The loan will result in the creation of up to 1,300 new jobs when the plants are operating at full capacity.
VW Supplier Park Underway -- Engines to Come From Mexico
Volkswagen has begun work on two 220,000-square-foot buildings next to its assembly plant in Chattanooga that will serve as a supplier park for the German automaker. VW expects that six suppliers will locate in the two buildings adding about 500 jobs to the project. Suppliers will produce axles, fuel tanks, seats, headliners, door panels, exhaust systems, tires, wheels, consoles and other parts in the park. The engines of the new sedan VW will assemble in 2011 will come primarily from its plant in Puebla, Mex., however some will be imported from Germany. The transmissions for the new model will be imported from Japan.
SL America Awarded VW Contract
SL America Corp., located in Clinton, Tenn., has been awarded the contract to supply automatic shifter assemblies for Volkswagen Group of North America. The South Korean firm is expected to invest $35 million as a result of the new contract and hire 300 more workers that will be housed in a 100,000-square-foot addition to its current facility.
Automotive IT Company Opens Office in Chattanooga
Wolfsburg, Germany-based Honigsberg & Duvel Corp., an information technology company that specializes in the automotive sector, has leased office space in downtown Chattanooga with plans to employ 30 workers within 12 months and possibly 100 in two years. About 70 percent of the company's work in Germany is for Volkswagen.
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