Fall 2006

QUIZ

Korean automaker Kia officially broke ground on its first U.S. assembly plant, a $1.2 billion facility, in Troup County, Ga. in the fall quarter (October 20, 2006). Troup County has a population of about 62,000, and there are approximately 11,000 single-family homes located in the county. How many single-family homes are expected to be built, many of which are a result of the new assembly plant, over the next five years in Troup County, Ga.?

(a) 13,000 (b) 4,000 (c) 2,700 (d) 7,500

(Scroll down for answer)

Looks Like Rumored East Coast Location for Toyota Assembly Plant Might Come True

Reliable sources have told SouthernAutoCorridor.com that Japanese automaker Toyota has narrowed an area of North Carolina in the Piedmont Triad region, a site in Southwest Virginia and a site in Southside Virginia for a future automotive assembly plant. A location near Greensboro has been favored by the automaker, however, Toyota officials viewed by helicopter an Interstate site that is located southeast of Richmond in rural Southside Virginia during Thanksgiving week.

As we've written several times over the last year or so, Toyota is not looking to build one assembly plant in North America, we believe they are currently considering three new facilities. Since 2003, Toyota has also announced, built or taken over three assembly plants in North America.

Other states in the Southern Auto Corridor are also being looked at by Toyota for future assembly plant operations. Visits were made by the company over the last nine months to Louisiana, Arkansas and Tennessee. However, we believe the next Toyota assembly plant will be announced in either North Carolina, Southwest or Southside Virginia. 

GM Investing $225 Million in Spring Hill, Tennessee Plant

When we heard the rumors earlier this year that General Motors' central Tennessee facility could be closed and that "no future models were planned for Tennessee GM plant," we were shocked. After all, the 16-year-old facility, which has built various Saturn models since 1990, is one if not the most productive plants the company operates. If GM were to close its Tennessee plant, well, it might as well just "pack it in" we wrote.

In mid-December, GM announced it plans to invest about $225 million in its Spring Hill, Tenn., facility to renovate the plant's massive paint shop in preparation for future vehicle production. The improvements will idle the plant some time in April of 2007, however, the facility's 3,500 UAW workers should not be affected for any length of time.

Toyota Rolls Off "Job One" in San Antonio

On November 17, Toyota officially celebrated the opening of its new pickup truck assembly plant in San Antonio, Tex. Toyota President Katsuaki Watanabe, Chairman Dr. Schoichiro and Texas Gov. Rick Perry were there to see the first, redesigned Toyota Tundra model roll off the assembly line, known as "job one" in OEM circles. Toyota has invested about $1.3 billion to date in the plant, which has attracted 21 parts suppliers to an on-site supplier park. The San Antonio plant currently has the capacity to produce 200,000 trucks a year.

Nissan May Use Idled Domestic Automaker Factories

The former Oklahoma City GM plant was one of the most efficient vehicle plants in the world. No vehicles are currently being made there. Between April and August of this year, inquiries to one of our Web sites, www.SouthernAutoCorridor.com were off by about 30 percent. The reason we believe is that part suppliers were waiting to see if Japanese automakers were going to merge or buy either GM or Ford. It's kind of difficult to make expansion plans in a situation like that if you're a parts supplier. In the fall quarter, Nissan and Renault CEO Carlos Ghosn said that the company may "use" closed GM and/or Ford assembly plants to increase its North American production. If that occurs, it's our bet that the old GM plant in Oklahoma City will be the first plant and line to be restarted.

ALABAMA

Lear Plant Named "Assembly Plant of the Year"

Michigan-based Lear Corp.'s two-year-old seat assembly facility in Montgomery, Ala., was named in the fall quarter the "Assembly Plant of the Year" by Assembly Magazine. Lear opened the automotive interior parts plant in 2004 to provide products for vehicles being built by Hyundai at its Montgomery, Ala.-based auto works. Lear employs about 400 workers at the Montgomery facility.

Auto Suppliers Announce Plans to Locate Plants in Alabama

As Kia broke ground on its new operation in West Point, Ga., three Kia suppliers announced that they would locate new plants in Alabama.  Daewon America announced that it would bring 170 new jobs to Opelika where it will produce suspension bars and coils for Kia.  Also, Korea-based KwangSung America Corp., a plastic injection-blow mold provider announced plans to locate a new operation in Dadesville where it will eventually employ 150.  In Tallassee, Korean auto supplier Hanil USA will supply brake fuel and power steering tubes to Hyundai in Montgomery and to Kia, bringing 120 jobs to the area.

Two Auto Parts Plants Planned for Randolph County

Two new automotive parts plants are locating in Randolph County, Ala., which will create 135 new jobs.  Alabama Coating Technology plans to build two new plants--a 65,000 square-foot molding plant and a 150,000 square-foot coating plant in the area.

Auto Supplier Brings 500 More Jobs to Enterprise

A $12.5 million expansion of the HS Automotive Alabama, Inc. (HSAA) will bring 500 new jobs to the community of Enterprise.  HSAA, a Hyundai supplier, manufacturers rubber goods for the automotive products market.

Honda Facility Accounts for 3% of Alabama's Gross Product

We've said for years that there is only one industry that is targeting the South that can almost, by itself, transform a Southern state's economy. That industry is the automotive sector. It was reported in the Birmingham News in the fall quarter that Honda's plant in east Alabama and its suppliers account for three percent of the state's economy. The single plant is responsible for 45,000 jobs directly and indirectly and provides about $4.5 billion to Alabama's economy. Our point made. Honda employs about 4,600 workers at the plant in Lincoln, Ala., and celebrated its 1-millionth vehicle built in the state in November.

ARKANSAS

Hino Celebrates Opening

Toyota-affiliated truck maker Hino Motors opened its new parts plant in Marion, Ark., in the fall quarter. The company is producing differential, rear axle and suspension parts for Toyota vehicles. The company is the leader in Japan in the production of medium and heavy-duty diesel trucks. The new, 400,000-square-foot, $160 million plant currently houses about 220 workers.

Cooper Tire Cutting 500 Jobs in Texarkana

Cooper Tire & Rubber announced in the fall quarter it will cut 500 jobs at its 1,900-employee plant in Texarkana. The move is another in a series of job reductions by tire makers in the U.S. in an effort to cut costs as they contend with massive inflows of small tires into this country from overseas. In the Southern Automotive Corridor, Cooper Tire operates large tire manufacturing plants in Albany, Ga. and Tupelo, Miss. Those two plants are not affected by the Texarkana announcement.

GEORGIA

GM, Ford Workers Who Lost Jobs to Receive Training

Auto workers who have lost jobs in the Atlanta area as a result of General Motors' and Ford's plant closings are eligible for job training to move them into work in other industry sectors. The auto workers may receive as much as $3,000 annually for education and training. About 4,000 workers have either lost their jobs or will within the next year or so as a result of the two assembly plant closings in the Atlanta area. It should be noted that the last "turtle," sorry, Taurus, rolled off the assembly line at Ford's Hapeville plant on October 27, 2006. That last Taurus model was purchased by Truett Cathey, founder of the Chick-fil-A restaurant chain.

Kia Breaks Ground on Massive West Point, Ga. Plant

Kia Motors officially broke ground on its first-ever U.S. manufacturing facility in West Point, Troup County, Georgia.  The $1.2 billion automotive assembly and manufacturing plant will employ an estimated 2,893 workers.  The facility in Georgia, named Kia Motors Manufacturing Georgia, is scheduled to begin production in 2009 and is expected to produce 300,000 vehicles per year at full capacity.

Japanese Motor Sports Company Breaks Ground in Peach State

Suzukaku, a steel manufacturer and parts maker for major motor sports manufacturers, broke ground in the fall quarter on its first U.S. facility in Haralson County, Ga. The deal represents a $10 million investment and will create about 50 new jobs.

SOUTH CAROLINA

Faurecia Expanding in Laurens County

Michigan-based Faurecia announced in the fall quarter it is expanding its Laurens County plant, adding vehicle seating products for Saturn and BMW models. The deal will add 50 new jobs and represents a $24 million investment.

TENNESSEE

Automotive Supplier Growing in Tennessee

DURA Automotive Systems, Inc. will expand its operations at three Tennessee facilities.  The expansion represents a nearly $3 million capital investment and more than 200 jobs created.

NSK Steering Systems Picks Dyersburg

Automotive steering systems manufacturer NSK announced in the fall quarter it is opening a new facility at the Dyersburg, Tenn., North Industrial Park. Dyersburg is located north of Memphis in west Tennessee. The company expects to hire 150 new workers.

Nucor Finally Works Out Memphis Steel Mill Deal

After months of negotiations, Charlotte-based Nucor Corp., announced in the fall it will completely retrofit the former Birmingham Steel Plant, located in the Frank C. Pidgeon Industrial Park, to produce high quality carbon and alloy round cornered squares for the automotive and heavy equipment industry. The new steel mill represents an investment of $230 million, will produce about 850,000 tons or product annually at full capacity and will house about 225 workers initially.

Tier Two Supplier Expands in Fayetteville

C&S Plastics is doubling its manufacturing space in Fayetteville, Tenn. The company currently employs about 100 workers and is expected to hire 35 more during the expansion.

Joint Venture Involving Koyo to Create 150 New Jobs in Northeast Tennessee

Koyo Corp. of USA, along with Nakatetsu, both Japanese-based companies, have formed a joint venture company called Nakatetsu Machining Technologies, that is establishing new operations in Washington County, Tenn., which is located in the Tri-Cities region of Northeast Tennessee. The company is expected to create about 150 new jobs.

TEXAS

Goodyear Closing Large Tyler Plant

The manufacturing of tires in this country continues to decline at a rapid rate as rubber products from China and other countries flood into the U.S. In the fall quarter, Goodyear announced it would close its plant in Tyler, Tex. The closure will affect 1,078 workers that are employed at the tire plant. The plant in Tyler, located in east Texas, opened in 1962 and produces tires for small vehicles.

QUIZ ANSWER

Officials estimate that 13,000 (a) new single-family homes will be built in Troup County, Ga., over the next five years, more than doubling the current number of homes located in the county today. Kia is expected to create about 5,000 new jobs directly in the west Georgia region over the next five years, which is located about 65 miles southwest of Atlanta on Interstate 85 near the Alabama/Georgia border.