Southern Auto Corridor News

Courtesy of www.SouthernAutoCorridor.com

ALABAMA

Hyundai Makes it Official

After missing its projected commercial production date of March, Hyundai officially began shipping vehicles to dealers from its new plant in Montgomery, Ala. , in mid-May. Hyundai officials said the delay was simply a matter of getting the vehicles right before offering them for sale. The new 2-million-square-foot plant employs about 2,000 workers and is producing Hyundai Sonata and Sante Fe models. The South Korean-automaker celebrated the opening of its new plant on May 20th and former President George H.W. Bush was one of the featured speakers.

Hyundai Supplier Announces in Opelika

It's been awhile since a supplier for the newly opened Hyundai plant in Montgomery announced a new plant. Dozens of them announced plants in Alabama in 2003 and 2004, but the tidal wave of suppliers to the state turned to barely a ripple this year. Yet, the tide of the suppliers hasn't stopped as Maxforma Plastics, a subsidiary of South Korea-based Hanwha L&C Corp., announced in May it is building a $14 million parts plant in Opelika. The 80,000-square-foot facility is being built at the Northeast Opelika Industrial Park on Interstate 85. Maxforma will make plastic bumper parts to be used on Hyundai's Sante Fe and Sonata vehicles now being assembled in Montgomery. The deal will create about 100 new jobs.

Alabama Mercedes Plant Named Company's Best

Parent company DaimlerChrysler AG has recognized the Mercedes-Benz assembly plant in Vance, Ala. as the best performing Mercedes plant in the world for 2004. The facility is located equal distance between Tuscaloosa and Birmingham, Ala. In a related story, Mercedes expects its SUV sales in the U.S. to double in the next three to four years. Mercedes makes the second generation M-class, the first generation R-class wagon and will produce the G-class at its Alabama plant within two years. In the spring quarter Mercedes officially opened its second line, an expansion that represented a $600 million investment. Mercedes officials expect that when the second line is in full production later in the year, the Alabama plant will account for about 20 percent of the German automaker's total annual revenue.

Honda Breaks Ground on $75M Engine Plant Expansion

At Honda's Lincoln, Ala., Odyssey assembly plant, new construction has been an endless endeavor since the Japanese automaker broke ground in the state in 2000. In fact, about $1.6 billion (they don't reveal all of their investments) has been spent by the automaker on infrastructure and equipment at the east Alabama facility in just five years. The latest investment is a $70 million expansion of the company's engine plant that will double the size of the facility. Honda makes six-cylinder and variable cylinder management engines in Alabama. The deal is expected to bring employment at the auto works in Lincoln to about 4,500.

Johnson Controls Expands

Johnson Controls recently expanded its Cottondale, Ala., plant that makes automotive interiors for the Mercedes-Benz assembly plant in Vance, Ala. The company nearly doubled the facility, from 168,000 square feet to 320,000 square feet. Johnson Controls provides seat systems, door panels, overhead systems, hard trim, compass modules and its HomeLink Wireless Control Systems, as well as other products to Mercedes. The company will add 500 new jobs in the new deal.

JIT Industries Building New Plant in Alabama

JIT Industries, a manufacturer of industrial cylinders for use in the automotive, steel, power generation and forest products industries, has announced it is locating a plant in Decatur, Ala. The company currently operates a cylinder plant in North Alabama in Hartselle. The $2.8 million new plant will employ about 40 workers and will conduct work on fluid power repair 24-hours a day.

ARKANSAS

ITT Industries Announces Brake Pad Plant in Searcy

ITT Kori America, a division of ITT Industries, announced in late May it will open a new brake pad production facility in Searcy, Ark. The 136,000-square-foot plant is expected to house about 80 workers within two years. ITT will invest $10 million in the deal and $24 million more within five years.

Hino Motors Assisting Local Colleges with Training

Toyota subsidiary Hino Motors, which is building a truck parts plant in Marion, Ark., that will eventually house more than 2,000 workers, is assisting the Mid-South Community College in West Memphis to start up an automotive manufacturing training program. In fact, a total of four Arkansas community colleges have formed an alliance with Hino. The plan calls for educators and economic developers from the Delta region of east Arkansas to travel to Tokyo to study Hino's and Toyota's manufacturing processes. Also included in the training trip are programs Hino uses at the high school level in Japan that can launch a kid from his senior year in high school to the factory floor within days.

Marion Applying for Economic Development Zone Status

In 2003 a site in Marion/Crittenden County, Ark., placed second in the race to win a Toyota assembly plant that is now being built in San Antonio. The site, located across the Mississippi River from Memphis, was considered again by Toyota in the past year, however that site search looks like it will end with an announcement in Woodstock, Ontario. We've written in this section a couple of times over the last year that we believe Marion, Ark., was the first choice for the Toyota plant that is apparently landing in Canada. But when Crittenden County and Shelby County, Tenn., were designated non-attainment areas for ozone by the Environmental Protection Agency in April 2004, Toyota officials began to look elsewhere for their seventh North American assembly plant. In September of 2004, the EPA agreed to take Crittenden County off the non-attainment list based on steps the county agreed to take to improve the quality of its air. By then, however, we believe the damage was done. Toyota or no Toyota, Crittenden County officials haven't given up on landing an automotive assembly plant at the site in Marion. They are applying to the EPA for Economic Development Zone designation. If approved, it would allow Crittenden County to recruit a large user to the site, such as an automotive assembly plant, without providing emissions offsets. The site in Marion features 1,265 acres and has already lured several Toyota-related automotive deals including the Hino Motors plant.

Parts and Distribution Facility Underway in Wynne

Eakas Arkansas, a subsidiary of Japan-based Sakae Riken Kogyo Co., has broken ground on a new facility in Wynne, Ark. The $15 million, 91,000-square-foot plant will house about 65 employees at the start, however, plans are to expand to as many as 400 in a larger facility within three years. Eakas Arkansas will produce door handles and mirrors for Toyota's Camry and Corolla model vehicles at the Wynne facility.

FLORIDA

Mitsubishi Comes Back to Jaxport

Japanese automaker Mitsubishi, which moved its shipment of vehicles to Georgia's Port of Brunswick several years ago from Jacksonville, has switched back to moving the cars and trucks through Jaxport's Blount Island Marine Terminal. Mitsubishi plans to import about 15,000 vehicles annually through Jacksonville for distribution in the South. Mitsubishi officials stated the number could double within three years. In 2004 Kia Motors and Hyundai Motor America moved the shipment of their vehicles from Jacksonville to the Port of Brunswick. The two Korean automakers imported about 130,000 vehicles through Brunswick last year.

GEORGIA

Honda Cuts the Ribbon on Georgia Plant

Honda Motor Co. broke ground in mid-May on its $100 million automatic transmissions facility in Tallapoosa, Ga., which is located almost equidistance from Atlanta and Honda's titanic assembly plant in Lincoln, Ala. The 250,000-square-foot facility is expected to produce its first transmission in the fall of 2006. The trannies will be used at the Honda facility in the Odyssey and Pilot models. When completed, the Tallapoosa facility will house about 400 workers.

Ford Snuffs Mercury Sable at Georgia Plant

Ford Motor Co., stopped producing Mercury Sables at its Hapeville, Ga. plant in the spring quarter. The domestic automaker will also end the production of Ford Taurus’s by the spring of 2006. Speculation has it that the Hapeville plant will build Lincoln Town Cars and LS sedan models with delivery to dealers for the 2008 year.

KENTUCKY

Toyota to Build Hybrids at Georgetown Plant

In May Toyota officials announced that gas and electric hybrid vehicles will be built at the Japanese automaker's 7.5 million-square-foot plant in Georgetown, Ky. Production of the hybrids is expected to begin next year. The new vehicle will be based on the Camry model, which is assembled at the Kentucky plant. The announcement marks the first venture for Toyota into hybrid vehicle assembly in North America and the Japanese automaker is expected to produce about 4,000 Camry hybrids a month once production begins. Toyota will not add a new production line at the Kentucky plant to build the Camry hybrid and the investment the company is making in the venture is surprisingly low at only $10 million.

Tower Automotive Closing Kentucky Plant

Novi, Mich.-based Tower Automotive, which is reorganizing under Chapter 11 bankruptcy, announced in the spring it is closing its parts plant in Bowling Green, Ky. The closure will affect about 100 workers at the facility.

Benson International Building Plant in Kentucky

Benson International announced in March it is building a $10 million plant in Cadiz, Ky., to build aluminum and steel truck bodies and trailers. The 180,000-square-foot plant will feature two production lines and house about 250 workers. Benson International is an employee-owned company headquartered in West Virginia. The company operates other plants in West Virginia, Tennessee and Pennsylvania.

MISSISSIPPI

Hino Motors Distribution Center Opens

Michigan-based Hino Motor Sales USA, a division of Hino Motors Ltd. of Tokyo, opened its national parts distribution center in Southaven, Miss. in late April. The 100,000-square-foot parts center services about 150 Hino truck dealers in North America. Toyota owns a controlling interest in Hino. Other owners of the truck maker include Penske Corp. and Mitsui & Co.

Nissan's Attention to Canton Plant Pays Off

Last year, Nissan was having production quality issues at its two-year-old assembly plant in Canton, Miss. After receiving a poor rating of 154 problems per 100 vehicles in a 2004 J.D. Power and Associates' Initial Quality Study, the Japanese automaker rushed 200 engineers to Mississippi from Japan to help fix the problems that were surfacing on the Titan pickup, Armada SUV and Quest minivan models. Nissan's sense of urgency has paid off with the latest J.D. Power quality report. Nissan's problems per vehicle have dropped to 120 per 100 vehicles, or at about the industry average of 118 problems per 100 vehicles.

MISSOURI

Systems Supplier Announces Missouri Plant

Harman Becker Automotive Systems Manufacturing has announced a new $26 million manufacturing facility in Washington, Mo. The company makes digital navigation, information and entertainment systems for the automotive industry. About 200 jobs are expected to be created. Improvements are being made at the Heidmann Industrial Park in advance of the company's new facility. Also, about $1 million in job training is being provided the company through the state of Missouri and the city of Washington is providing financial assistance and property tax abatements.

Missouri Responds to Laid Off St. Louis Auto Workers

The state of Missouri is administering a grant provided by the U.S. Department of Labor for 400 former workers of Ford Motor Co. and Lear Seating Corp. in Hazelwood who lost their jobs because of a drop in car sales. The dollars will be used on services such as job assessment, counseling, short-term job training and case-management for the 400 workers.

NORTH CAROLINA

Alcoa Subassembly Opening in Salisbury

A subsidiary of Pittsburgh-based Alcoa is opening a plant near Charlotte. Ohio-based Alcoa Subassembly, a manufacturer of wheel and tire assemblies, is moving into an existing 298,000-square-foot facility in Salisbury, N.C. The deal is expected to create at least 75 jobs. Alcoa Subassembly is a supplier to Freightliner, which has heavy duty truck plants in Rowan and Gaston counties in North Carolina. The company is investing $6 million in the deal.

Kordsa Expanding in Rural N.C.

Kordsa USA, a subsidiary of Delaware-based DUSA International, is expanding its tire cord plant in Laurel Hill, N.C. Kordsa is adding 216,000 square feet to its facility in rural Scotland county and will add about 10 jobs to its current work force of 180. The company is adding new tire cord twisting and weaving equipment in a reported investment that will total about $22 million. Kordsa's parent company, DUSA International, is a joint venture between Dupont and Sabanci, which is based in Turkey.

Volvo Trucks North America Expands in N.C.

Greensboro-based Volvo Trucks North America Inc. has secured $800,000 in incentives from the state North Carolina and Guilford County to expand its North American headquarters in Greensboro, N.C. The company currently employs about 1,500 workers at its headquarters, located on Interstate 40. Volvo Trucks N.A. is a subsidiary of Volvo AB of Sweden. The truck maker delivered over 5,000 heavy trucks to buyers in North America and 16,000 worldwide in January and February, a 63 percent increase over the same period last year.

N.C. Community College Receives Grant for Training Auto Industry Workers

Piedmont Community College has received a $100,000 grant from North Carolina's Golden Leaf fund to train workers at four automotive companies in the Tar Heel State. Employees at GKN, Eaton Corp., Collins & Aikman and Strutmasters, all automotive parts suppliers, have received training at PCC. Together the companies employ about 2,000 workers in North Carolina.

SOUTH CAROLINA

Pierburg Expanding S.C. Facility

Pierburg Inc., is expanding its manufacturing operation in Fountain Inn, S.C. The $20 million capital investment will add production capability of automotive engine exhaust components by Pierburg and increased production of friction-reducing Permaglide components made by parent company Kolbenschmidt Pierburg's KS Bearings division. Pierburg is headquartered in Dusseldorf, Germany and its U.S. headquarters is located near Chicago. The expansion will create about 100 jobs.

TENNESSEE

Toyota Division Expanding Engine Plant

Toyota subsidiary Bodine Aluminum is expanding its engine block plant in Jackson, Tenn. with a $40 investment. The deal is expected to create about 20 new jobs. The expansion will enable Bodine to produce about 250,000 aluminum transmission casings for Toyota annually by 2007. About 1 million engine blocks are expected to also be produced at the Jackson facility annually by 2008.

SPX Contech Expanding in Clarksville

Charlotte-based SPX Contech Metal Forge announced a $22 million expansion of its plant in Clarksville, Tenn. The plant opened in 1979 as a cold metal forging plant and retooled in 2000 to an aluminum die casting operation to make parts for the automotive industry. SPX is adding a new manufacturing line for rack and pinion steering systems that will be used in trucks. The deal is expected to create about 30 jobs.

Chattanooga Enterprise South Industrial Park Certified by TVA

The 1,600-acre Enterprise South Industrial Park is the fourth site in the South certified by the Tennessee Valley Authority in the last year. Previously the public utility certified sites in Columbus and Tupelo, Miss. and Hopkinsville, Ky. The Enterprise South site has been linked to rumors about another automaker announcing a new assembly plant in the Southern Auto Corridor (www.SouthernAutoCorridor.com). The TVA certification means that the site is ready for development and that all work needed for the necessary permits for a large user, such as an automaker, has been completed.

Toyota to Use Bridgestones

Nashville-based Bridgestone-Firestone has struck a deal with Toyota to outfit the Turanza EL400 tire as original equipment on the carmaker's Camry, Solara and Avalon models. The same tire was picked by GM for its Cadillac DTS model. Bridgestone-Firestone employs about 5,000 workers in the Nashville area.

TEXAS

Toyota Announces Processing Center

In the winter quarter 18 parts suppliers to the Toyota plant now under construction announced they would be setting up shop next to the assembly facility in San Antonio. In the spring quarter Toyota Logistics Services announced it is building a 60-acre vehicle processing center and a 94-acre rail yard at the site of the plant. The $40 million deal will process and ship vehicles produced at the plant. The Tundra pickup truck is the only vehicle identified by Toyota to date that will be assembled at the new plant. The new processing center will ship vehicles made at the plant to dealerships in the U.S. and Mexico and will also prepare vehicles for export overseas.

Hyundai Picks Coppell for Regional Office

Korean-automaker Hyundai has opened a regional service, service training and sales office to serve the central South and parts of the Midwest. The new office will serve about 130 Hyundai dealerships in 12 states from Kansas to Alabama. Hyundai officially opened its first U.S. assembly plant in Montgomery, Ala. in late May.

ATX Opening Second D/FW Facility

Germany-based ATX Group announced in the spring quarter it is adding a second facility in the Dallas/Fort Worth metro. The company provides services for telematic equipped vehicles. Telematics involves location-based voice and data communication services that include navigation assistance, stolen vehicle tracking and emergency response abilities. The company provides the services to BMW, Mercedes-Benz and Rolls-Royce.

VIRGINIA

Narricot Industries Expands in Virginia

Narricot Industries, a manufacturer of side impact airbags and polyester and nylon webbing products for the automotive and defense industries announced in the spring it is investing $20 million to expand its Southampton and Mecklenburg County plants. The deal will result in about 140 new jobs.

Koyo Steering Expanding Near Roanoke

Koyo Steering Systems of USA is investing $36 million and adding about 100 jobs in the latest expansion of its Botetourt County, Va. plant. The company has been operating near Roanoke since 1999 and produces electric power steering assemblies. Koyo Steering is a subsidiary of Koyo Seiko Co. of Osaka, Japan.

Volvo, UAW Approve Contract

In the spring quarter Volvo Trucks NA reached a three-year contract with union workers at its New River Valley, Va., facility. Volvo Trucks NA is based in Greensboro, N.C., and officials with the truck maker had been negotiating with the 2,800 workers at the plant since January to approve a contract. The 2,800 workers are members of the United Auto Workers union. The Volvo facility has added workers and production at the facility over the last year-and-a-half and has struggled to meet the high demand for its trucks as of late.

West Virginia

Toyota Expands West Virginia Facility

On April 29, Toyota officials announced another expansion of its engine and transmission plant in Buffalo, W.V. Toyota will add 182,000 square feet to its transmissions facilities, increasing capacity by 250,000 power trains a year. Toyota also produces four and six-cylinder engines at the West Virginia plant. The plant is a U.S. favorite of Toyota senior vice president Dennis Cuneo. Cuneo has been at the forefront of Toyota's expansions in the Southern Auto Corridor for several years now. "The plant has exceeded our expectations. When you have a plant that is productive and produces good quality, you invest more money in it. The Buffalo (W.V.) plant is a very important part of our North American operations," Cuneo said. He continued by saying, "Transmissions are probably the most difficult part to build, with the tolerances you have to meet. Transmissions are the ultimate test of a plant. Our transmissions line in West Virginia has done very, very well." The expansion increases the amount Toyota has invested in the facility to almost $1 billion and will add 150 jobs, increasing the total of workers to about 1,150.