Fall 2007

QUIZ

Which foreign-owned auto plant in the Southern Automotive Corridor currently has the most capacity to produce vehicles?

(a) Honda in Lincoln, Ala. (b) Renault/Nissan in Smyrna, Tenn. (c) Toyota in Georgetown, Ky. (d) Renault/Nissan in Canton, Miss. (e) BMW in Greer, S.C.

(Scroll down for answer)

Editorial

VW Needs to Put up or Shut up

The fact that Volkswagen of America announced recently that it is moving its headquarters from Michigan to Virginia is a good sign that the German automaker may eventually make good on its 15-year-long or more site search for a new assembly plant in the Southern Auto Corridor. VW closed its only U.S. plant, which was located in Pennsylvania, in the late 1980s.

Officials with VW almost got down to business in Alabama in the early 1990s. What happened? Nothing. Other states have courted them, as well as Volvo over the years and neither foreign automaker has pulled the trigger to build a plant in the SAC.

Should I remind them that Honda, Hyundai, BMW, Mercedes, Toyota and Nissan have all experienced remarkable results coming from their various $1 billion-plus (that with "B") investments in their new facilities in the Southern Auto Corridor. Foreign auto plants in the South run 24/7 mostly and crank 'em out like no group of automakers in this country.

So, VW, we've heard this before. We would certainly love for your great company to open its newest facility in the Southern Auto Corridor, where your fellow German automakers, Mercedes and BMW are doing so well. But you have been talking about the prospects of this plant for almost two decades now. That being the case Volkswagen, it is high time to put up or shut up. 

Michael C. Randle
mike@sb-d.com

Southern Auto Corridor Featured on CNN and CNN.com

In November the South's automotive industry, specifically the region's attraction to foreign automakers, was featured on CNN and CNN.com. Michael C. Randle, owner of Southern Business & Development magazine and its affiliated Web sites, www.SouthernAutoCorridor.com, www.BioIndustrySouth.com and www.SB-D.com, was quoted throughout the reports. To view part of the story, go to http://www.cnn.com/2007/US/11/01/auto.south/

Unions Try to Organize South's Auto Industry to No Avail

The UAW and the United Steelworkers keep coming up short time after time when trying to organize at automotive facilities in the Southern Automotive Corridor. Another try failed recently at Recticel Interiors NA, a supplier to the Mercedes-Benz plant in Vance, Ala. Employees at Recticel voted 141 to 40 against the United Steelworker's attempt to organize there, according to information from the Birmingham office of the National Labor Relations Board.

Southern States Take Nine-Out-of-Ten in Business Climate Survey

In November, Site Selection magazine came out with its annual ranking of state business climates and nine Southern states made up the publication's top 10. North Carolina topped the list as the state with the best business climate in the U.S., followed by Georgia, Texas, Virginia and Alabama. Also making the top 10 were Tennessee, Florida, Kentucky and South Carolina.

ALABAMA

To Serve Car Assembly Plants, Korean Firm Picks Auburn, Ala.

In November, The CNJ Tech unit of Korea-based Yangjung Industry Co., Ltd., announced it is investing some $15.7 million in a plant in Auburn, Ala., that will serve the Hyundai assembly plant in Montgomery, Ala., and the future Kia plant being built across the Alabama line in West Point, Ga. CNJ machines brake discs and knuckles and other precision parts. The new facility will need about 25 employees.

Mercedes Produces One Millionth Vehicle in Alabama

Earlier this year Honda celebrated producing its one millionth mini-van at its plant in Lincoln, Ala. Mercedes-Benz has followed suit at its Vance, Ala., auto works. On November, 27, Mercedes-Benz U.S. International, had its own celebration as the one-millionth vehicle rolled off the line, 10 years and nine months after the facility opened for production. Mercedes produces the M-Class, R-Class and GL-Class at the Alabama plant.

Hyundai Halts Production at Alabama Plant for Three Days

Korean automaker Hyundai shut down its Montgomery, Ala., plant for three days in the fall quarter because of slow sales of its Sonata sedan model. Sales of the Sonata dropped 43 percent in September, compared to September of 2006. The Sante Fe SUV model, which is also assembled at the Alabama plant, saw an 18 percent increase in sales compared to a year ago.

ThyssenKrupp Breaks Ground

Germany-based ThyssenKrupp officially broke ground in the fall on its $3.7 billion steel plant near Calvert, located in Southwest Alabama near Mobile. The proposed facility, located on over 3,000 acres, will eventually house almost 3,000 workers. The project is widely considered the largest single industrial project announced in the U.S. Much of the steel produced at the plant will be used in the automotive industry.

FLORIDA

Vehicle Processor Expands in Jacksonville

Southeast Toyota Distributors LLC, which handles vehicle processing at the Port of Jacksonville, has completed construction on a new 33,000-square-foot, $6.6 million training center at its processing center. The new facility will be able to accommodate 83,000 hours of entry level training a year. The training center will serve employees at Toyota dealerships in Florida, Georgia, Alabama and the Carolinas.

GEORGIA

Another Kia Supplier Setting Up Shop in LaGrange

Sejong Georgia LLC is investing $27.8 million to improve an existing 108,000-square-foot facility in LaGrange, Ga. The building was previously owned by Federal Mogul. The retrofit will house Korea-based Sejong's muffler and exhaust systems operations, a deal that will result in 250 new jobs. Sejong will supply the new Kia plant being built in nearby West Point, Ga.

Kia Supplier Dongwon Autopart Technology to Locate in Meriwether County

In the fall quarter, Korean automotive parts supplier Dongwon Autopart Technology announced it will locate a facility in Meriwether County to serve the Kia Motors plant under construction in West Point, Ga. The company will create 300 jobs and invest $30 million in the deal. The 150,000-square-foot facility, which will be located a half mile from Interstate 85 on State Highway 54, will house the company's door frame, side impact beams, roof molding, side absorbers and cross bar parts manufacturing operations.

Construction Equipment Manufacturer Breaks Ground in Pooler, Ga.

JCB, the world's largest privately owned manufacturer of construction equipment, announced in late November it is building a 200,000-square-foot customer support center in Pooler, Ga., located near Savannah. JCB currently employs about 500 workers at its North American headquarters in Pooler.   

KENTUCKY

Ford Receives Approval for Kentucky Incentives

In the fall quarter, the Kentucky Economic Development Finance Authority approved $24 million in incentives to Ford Motor Co. The incentives package also includes the transfer of nearly $40 million in unused tax credits that were approved for the domestic automaker in 1998 and 2001. In turn, Ford will invest about $200 million in its Kentucky Truck Plant, located in the Louisville metro. To receive the credits, Ford must employ at least 3.511 workers at the assembly plant each year over the next 10 years. The plant currently houses 4.137 workers. Ford officials were mum on the future of its other assembly plant in Louisville. However, Ford has agreed to build a flexible body shop at that facility.

Production Starts at Sekisui’s New Kentucky Facility

Sekisui S-Lec America’s said its $43 million plant in Winchester, Ky., started production in October, creating 80 jobs. The facility produces interlayer film used in fabricating automobile safety glass. The company is a subsidiary of giant Sekisui Chemical Co. Ltd. of Japan.

LOUISIANA

GM Adding New Line in Shreveport, Investing $73 Million

Detroit-based General Motors is adding a new line at its plant in Shreveport, La. GM produces the Hummer models in Shreveport. GM will add a pickup truck version of its Hummer 3 and it will be called the H3 T. GM also assembles the Chevrolet Colorado pickup truck at its Shreveport plant.

NORTH CAROLINA

Korean Tractor Maker Picks North Carolina for Assembly Plant

TYM-USA, a unit of South Korean tractor manufacturer Tong Yang Moolsan, will invest $1.1 million to build an assembly facility near Black Creek, N.C., creating 31 jobs. The company expects production to begin early next year.

OKLAHOMA

Chassis Products Company Consolidates to OKC

Affinia Group, a manufacturer of automotive replacement products, will consolidate its chassis products manufacturing and packaging operations into its Oklahoma City facility. The deal will result in 154 new jobs.

SOUTH CAROLINA

Robert Bosch Expanding in North Charleston

Robert Bosch Corp., is expanding its facility in North Charleston, adding about 100 new employees. The plant, which employs over 2,000, produces anti-lock brakes and fuel systems.

TENNESSEE

ThyssenKrupp Waupaca Breaks Ground on Expansion

In the fall quarter, ThyssenKrupp Waupaca, broke ground on a $162 million expansion to the company's operations in Etowah, Tenn., doubling the size of its current facility and adding more than 100 new jobs. The German company produces gray and ductile iron castings for automobiles.

Aisin Starts Construction of Expansion in Clinton

In the fall quarter, Aisin Automotive Casting broke ground on its new $67 million expansion at its facilities in Clinton, Tenn., located near Knoxville. The deal will double the company's operations there, adding 167 new jobs.

TEXAS

Toyota Vehicle Processing Center Going up in Temple

Gulf States Toyota is building a vehicle processing center in Temple, Tex., that will employ 250 people. The $50 million, 100-acre center will be built at Temple's Rail Park at Central Point, which has direct acess to the Burlington Northern Sante Fe rail yard. The facility will ship 100,000 Toyota and Scion vehicles each year. Toyota operates a pickup truck assembly plant in San Antonio. The processing center is expected to house up to 500 workers at full production.

VIRGINIA

Volkswagen of America Moving HQ to Virginia

Volkswagen of America announced last quarter that it will invest more than $100 million to relocate its U.S. corporate headquarters from Auburn Hills, Mich., to Fairfax County, Va. The new 185,000-square-foot facility will also serve as the U.S. headquarters for Audi of America, Audi Financial Services, Volkswagen Credit and other operations. The deal will create 400 new jobs in Northern Virginia. VW/Audi’s headquarter relocation to the Southern Auto Corridor is the second for a major automaker in the last three years. Nissan recently relocated its North American headquarters from California to Nashville.

WEST VIRGINIA

Hino Up and Running in West Virginia

Hino Motors Manufacturing USA rolled the first truck off the its new line in December. The Japanese automotive parts and truck manufacturer officially opened its new assembly plant in Williamstown, W.V., in the fall quarter. The Toyota affiliate also has a large presence in the Southern Auto Corridor in Marion, Ark.

Automotive Supplier Sets up Shop in Marshall County

Warren Distribution, an automotive supply company, has opened a new facility in Glen Dale, W.V. The facility, in Marshall County, houses 45 employees and produces automotive aftermarket products. The Nebraska-based supplier invested $13 million in the new project.

QUIZ ANSWER

Renault/Nissan’s facility in Smyrna, Tenn. -- the first foreign-owned auto plant to locate in the South -- has the largest vehicle capacity with the potential to produce almost 500,000 vehicles a year. Toyota’s plant in Georgetown, Ky. (485,000 vehicles) and Renault/Nissan’s in Canton, Miss. (400,000 vehicles) are the second and third-largest in the South in vehicle production capacity.