|
Southen Auto Corridor News
QUOTE
"In fact, the auto industry has become such a big
catch for the South that economic developers chase after cars
like country dogs."
Beth Gorczyca, The State Journal, Charleston, W.V., November
6, 2003
QUIZ
The new Nissan assembly plant in Canton, Miss. was designed
to produce how many different lines of vehicles? (a) Two;
(b) five; (c) 12; (d) three
(Scroll down for answer)
New Web site Launched
Southern Business & Development magazine has launched
on the World Wide Web www.SouthernAutoCorridor.com.
The new Web site is intended to guide the many automotive
parts suppliers and original equipment manufacturers to suitable
sites in the Southern Automotive Corridor, provide up-to-date
news on the automotive industry in the South and to give readers
different views on issues involving the growing industry.
Editorial
We Take Back Our Prediction Made on www.SouthernAutoCorridor.com:
Yes, There Will be an Assembly Plant Announcement in 2004
In February, we published on our new Web site, www.SouthernAutoCorridor.com,
that no new automotive assembly plants will be announced in
the Southern Auto Corridor in 2004. Our stance centered on
the fact that the Southern Automotive Corridor has been incredibly
active over the last three years with automakers' Toyota,
Mercedes, BMW, Nissan, Honda, Hyundai, Ford and GM investing
billions (that's with a "b") on assembly factories
in the region.
Because of all that activity, our intuition and experience
at observing this industry over the last dozen years told
us that 2004 would be a year of rest. Indeed, on www.SouthernAutoCorridor.com,
the following statement can be found (click "Editorials"):
"Hear this: no new assembly plants will announce in 2004
in the Southern Automotive Corridor, but two or three or more
will announce in 2005 and 2006."
We would like to recant that statement and change our prediction.
If the announcement has not come by the time this edition
is published and delivered, we believe Toyota will announce
another light-truck and/or SUV plant, this one to be built
in Marion, Ark., in calendar year 2004.
If you are a regular reader, you may remember back in early
2003 we predicted the last Toyota site search would end up
in San Antonio, Tex. ... and Marion, Ark. Again, go to www.SouthernAutoCorridor.com
or www.sb-d.com and you can easily find that prediction.
After that prediction was made, a Toyota affiliated company
announced an engine plant in Jackson, Tenn., and Toyota-related
suppliers announced plans to build in Northeast Arkansas.
Hmmm. All you've got to do is look at a map and realize none
of that activity can be related to the San Antonio plant,
now being built.
And today, March 8, 2004, the day before we go to press,
we receive solid information that a Toyota announcement for
a new plant in Marion, Ark. is a real possibility. If true,
that means we were right in early 2003, that Toyota would
build in San Antonio and Marion, Ark., but wrong a year later
when we predicted no new assembly plants will be built in
2004. Stay tuned.
Mike Randle (mike@sb-d.com)
Hyundai's Alabama Facility Nearly Finished
The $1 billion, 2-million-square-foot assembly plant being
built south of Montgomery, Ala. by Korean automaker Hyundai
is 85 percent finished. The structures are nearly complete
and ready for the next phase, which is the installation of
machinery and equipment. Hyundai officials said that the company
will meet its deadline to begin mass production of Sonata
sedans in March of 2005, with trial production beginning this
summer. The plant will house about 1,000 employees when it
begins production and over 2,000 when full production is reached
in 2007. In addition to a next generation Sonata, Hyundai
will produce a new version of the Santa Fe SUV at the facility.
The plant represents the first in the U.S. for South Korea's
largest automaker.
General Motors Adding 200 Workers in Missouri
GM is adding 200 workers at its Fairfax, Mo. plant where
it builds Malibus. Increased demand for the Malibu model is
the reason the workers are being added. Most of the new hires
will come from other GM plants in Michigan and Kansas.
Diamond Electric Expands in W.V.
Diamond Electric Manufacturing Corp. announced in late February
a $21 million expansion of its ignition coil plant in Eleanor,
W.V. The project will provide as many as 40 new jobs at the
Putnam County, W.V. facility. Diamond Electric officials said
the expansion will accommodate new business from DaimlerChrysler,
Ford Motor Co., and the new Global Engine Alliance Co., which
has been formed by DaimlerChrysler, Mitsubishi Motors and
Hyundai Motors. The company has also been a Toyota supplier
since it opened its plant in West Virginia in 1998. Diamond
Electric is a Japanese-owned company that first established
operations in Dundee, Mich. in 1992.
New Supplier Lands in Alabama
Decatur Plastics Products is building a facility in Gadsden,
Ala. The company makes plastic injection molded parts used
by Delphi. The company is expected to employ 50 workers.
Logistics Center Announced at Mercedes Plant
A new joint venture between Cookeville, Tenn.-based Averitt
Express and Atlanta-based i3 Group has been created to operate
a new 400,000-square-foot supply chain warehouse that is being
built next to the Mercedes-Benz assembly plant in Vance, Ala.
Averitt, a trucking and supply chain company, has handled
automotive parts shipping to the Mercedes plant since the
facility started production in 1997. i3 Group is a minority-owned
supply chain company. Mercedes-Benz is building the logistics
center that will sequence parts for the assembly plant, which
will begin operating a second production line in 2005. The
logistics center is expected to house more than 200 employees
and will be completed in January of 2005.
Unipres USA Expands in Tennessee
Unipres USA, a subsidiary of Japanese auto parts manufacturer
Unipres, is expanding its facilities in Portland, Tenn. The
company has purchased a 108,000-square-foot warehouse where
it will store parts. Unipres' factory in Portland houses over
600 workers who manufacture parts for Nissan, Ford, Isuzu
and Subaru. The supplier is one of the largest in Middle Tennessee.
The company also has a facility in Forest, Miss.
Editorial
Automakers in the South Save in Labor Costs
As we reported to you in December, Hyundai will pay its new
production workers $14 an hour when its plant opens next year
near Montgomery, Ala. But it wasn't until mid-January before
Automotive News reported the $14 an hour rate Hyundai will
pay. Automotive News noted that only Nissan's Canton, Miss.
plant has a lower starting wage, which they reported to be
$13.25 an hour. Representatives of both automakers have said
publicly that the wage increases to about $21 an hour after
two years.
Other plants in the South pay slightly higher wages for new
production workers. BMW and Mercedes pay about $16 an hour
to start at their plants in South Carolina and Alabama and
new workers at Honda's plant in Lincoln, Ala. receive about
$15 an hour.
Since BMW announced in South Carolina in 1992, Southern Business
& Development has consistently maintained that cost factors
are behind the growth of the Southern Automotive Corridor.
Foreign automakers know better than to set up shop in traditional
domestic automotive states such as those that make up Midwestern
Automotive Corridor. There, United Auto Workers earn $26 an
hour on average when they start.
So, say there's a difference of $10 an hour that foreign
automakers pay for labor in the Southern Auto Corridor compared
to what domestic automakers pay in "Detroit." The
following tabulates the savings automakers in the South enjoy
in different time frames based on a 3,000-employee assembly
plant that operates 100 hours a week:
* Savings per hour: $30,000
* Savings per day: $420,000
* Savings per week: $2,940,000
* Savings per month: $12,348,000
* Savings per year: $153 million
* Savings after five years: $765 million
The above figures are conservative at best. For example,
there are 168 hours in a week and assembly plants are manned
24/7. That being the case, a nice round figure of $1 billion
saved over five years by foreign automakers on labor costs
alone in the Southern Automotive Corridor must be a frightening
realization to domestic competitors up north.
Lee Burlett (lee@sb-d.com)
Japanese Supplier Locates in Tennessee
Aisin Automotive Casting Tennessee, Inc., a subsidiary of
Japanese auto parts manufacturer Aisin Seiki Co. Ltd., is
locating a 280,000-square-foot plant in the Clinton/Interstate
75 Industrial Park located in Clinton, Tenn. The company,
which is one of the Toyota groups, will create 400 jobs in
the Knoxville area by 2007. Aisin will invest approximately
$67 million in the Clinton community, where it will operate
a full process die-casting facility that includes casting,
machining and assembly to produce engine components. The components
include water pumps, oil pumps and pistons that will be installed
in the Toyota Tacoma, Toyota Tundra and Toyota Camry. Aisin
officials said an extensive site search was conducted in three
different Southern states before the company picked Clinton.
QUIZ ANSWER
The answer is (b). Five different vehicles are being assembled
at the Jackson, Miss.-area Nissan plant including sedans,
minivans and SUVs. No assembly plant in the Southern Auto
Corridor can claim that many models being produced.
QUIZ
The motor sports business in Charlotte, N.C. is pretty
big. But how big is it? Well, take the wheel and choose one
of four possible answers based on investment and jobs created
in the Charlotte area by the motor sports industry over the
last 10 years. Is it (a) $11 million, 6,000 jobs; (b) $111
million, 60,000 jobs; (c) $20 billion, 200,000 jobs; or (d)
$645 million, 32,000 jobs?
(Scroll down for answer)
Hyundai Supplier Expands
Mobis Alabama, a Tier one auto parts supplier that is building
a plant in Montgomery, Ala. to supply Hyundai's new facility
there, is expanding. The company originally planned to employ
430 workers, but has now announced that total employment will
increase to over 700 when production begins. Mobis is taking
over some of Venture Industries' work after that company's
parts plant deal, which was to be built in Prattville, Ala.,
fell through last year.
Hyundai's Tier One Supplier Total Impressive
Hyundai's Alabama plant won't open until next year, but its
Tier one base of suppliers have invested in the state in impressive
fashion. As of February 6, 2003, Tier one Hyundai suppliers
have accounted for almost half-a-billion dollars in capital
investments in the state. Announced employment by those 20-plus
suppliers exceeds 4,000 jobs.
Tier Two Supplier Picks Rural Union Springs, Ala.
Hinge Tech announced in February it will move into an existing
41,000-square-foot facility in rural Bullock County, Ala.
The Tier two parts supplier will make materials and handling
equipment, such as conveyor belts and small cranes available
to Hyundai's Tier one suppliers. The company is expected to
hire 60 workers.
Duke University and GM Partner on Fuel Cells
Duke University's Fuqua School of Business, the Pratt School
of Engineering and the Terry Sanford Institute of Public Policy
are conducting research and creating classes aimed at helping
develop hydrogen fuel-cell vehicles for GM by 2010. General
Motors made its first donation of $500,000 for the project
in the winter quarter. In a related story, in mid-February,
GM started up the first of 400 fuel cells in a test at a Dow
Chemical plant in Texas. GM plans to sell low-pollution fuel
cell vehicles in the U.S. market within six years.
Honda Sees Production in Alabama Soar
Honda's Talladega County, Ala. assembly plant produced 167,884
Odyssey minivans in 2003. The total was a 55 percent increase
over the number of vans assembled at the plant in 2002 and
18,000 more than the company estimated would be made. A second
production line at the Lincoln, Ala. plant will begin assembling
Honda Pilots in April.
Featherlite Reopens Oklahoma Facility
Featherlite, a manufacturer of specialty trailers and luxury
motorcoaches, has reopened its facility at MidAmerica Industrial
Park, located in Pryor Creek, Okla. The 121,500-square-foot
plant had been sitting idle since Featherlite closed it two
years ago as a result of the nation's economic downturn. The
plant, which at one time employed over 250 workers in the
fabrication of motor coaches, will be used to serve other
areas of the recreational vehicle market.
Editorial
Here's a Prediction: Kia Will Announce its First U.S.
Plant in 2006 and We Know Where it will be Built
Alright, we know predictions aren't exactly journalism in
the professional sense. Yet, from what we hear, you sure do
love to read our predictions, especially those involving prospective
deals in the Southern Automotive Corridor (www.SouthernAutoCorridor.com).
So let us try to entertain you with another.
Korean automaker Kia will build a plant in the Southern Auto
Corridor (SAC) and it will be announced in the spring of 2006.
How do we know that? Well, we really don't. But, not unlike
our dead-on predictions over the last dozen years in the SAC
involving BMW, Mercedes-Benz, Nissan, Hyundai (that one was
so easy), Toyota and Honda, (We admit we missed that one.
We picked Honda to land in Opelika, Ala. and they chose Lincoln,
Ala.), the information we are receiving points to a Kia plant
being built in the U.S. soon. In fact, here are 10 indicators
that we have found that convince us that Kia will announce
in 2006 and where the plant will be built.
Indicator No. 1: Kia's U.S. sales are climbing and fast.
Indicator No. 2: In January, Kia's U.S. division CEO Peter
Butterfield said at the Automotive News World Congress in
Dearborn, Mich., that the automaker "might build"
its first U.S. plant within two years.
Indicator No. 3: Kia is searching for some autonomy from
its parent Hyundai. That being the case, when it does announce
it will build its first U.S. plant, don't expect it to be
built next to the Hyundai facility currently under construction
just south of Montgomery, Ala., even though that Korean automaker
just happened to purchase enough land to accommodate a second
plant.
Indicator No. 4: Kia is not Hyundai and Hyundai is not Honda,
Nissan or Toyota. So, will the growing pup build far from
its young mother when both are weak dogs in the yard? No way.
If Kia builds in the SAC (Southern Auto Corridor), it won't
be next to Hyundai's Montgomery plant, but it won't be far
from it either.
Indicator No. 5: U.S. Sen. Trent Lott (Miss.) said with much
bravado in the summer of 2003 that Kia is the next foreign
automaker to land in the SAC and Mississippi will do what
it takes to land it. In fact, Lott claimed Mississippi would
land it, end of story. Lott's lost some political power in
the last few years, but not enough to keep him from turning
a big automotive deal for Mississippi before he hangs up his
hat. Rumor has it Lott is hell-bent on the deal.
Indicator No. 6: In 2003, Alabama and Mississippi did something
that has never been done before in economic development history.
They joined hands in an effort to develop and make more prosperous
their border regions, which, for the most part, are rural.
No two states have joined together in any kind of economic
development effort of that magnitude.
Indicator No. 7: Over 75 percent of automotive deals landing
in the Southern Automotive Corridor in the last three years
have chosen rural areas.
Indicator No. 8: There is a sense of urgency among federal
and state DOT officials to improve U.S. Highway 80 from Montgomery,
where the Hyundai plant is, through Selma, Ala. on to Meridian,
Miss., which is located on Interstate 20/59 on the border
of Alabama.
Indicator No. 9: There happens to be an excellent, flat-as-a-board
greenfield site near Meridian and even one on the other side
of the border in Alabama that can easily accommodate an auto
assembly plant.
Indicator No. 10: History has shown that the last five assembly
plants built in the South were built within two miles of an
Interstate. Of those five, four landed in either Alabama or
Mississippi.
So, what do our indicators tell you about where Kia will
build its first North American assembly plant? Circle Meridian,
Miss. on the map. Kia will build its first U.S. assembly plant
in Mississippi (new Gov. Haley Barbour better write the check)
near Meridian. But Lott was wrong. Kia is not the "next"
foreign automaker to announce a plant in the Southern Auto
Corridor. That will be a Japanese automaker in late 2005.
Lee Burlett (lee@sb-d.com)
Big Announcement by Auto Supplier in Kentucky
A subsidiary of Magna International, a worldwide supplier
of automotive components and systems, will hire as many as
800 workers in Bowling Green, Ky. The subsidiary, Cosma International,
made an announcement in December of 2003 that it will build
a 900,000-square-foot parts plant in Bowling Green's TriModal
Transpark. At the time, no job figures were announced. The
800-job figure and 900,000-square-foot facility represent
one of the largest supplier announcements in years in the
Southern Auto Corridor.
Ford Scaling Back in St. Louis
Missouri Gov. Bob Holden recently declared the automotive
industry one of the state's primary recruiting targets. The
official order coming from the Governor proclaiming automotive
No. 1 for Missouri took a hit just a week after it was released.
Ford Motor Co. announced in late January it would eliminate
the second shift and cut about 1,000 jobs at its Hazelwood,
Mo. assembly plant. Ford also plans to lay off 200 workers
at its Claycomo, Mo. assembly plant near Kansas City. Rumors
surfaced in 2002 that Ford would close the St. Louis plant,
which makes Ford, Lincoln and Mercury SUVs. While Ford officials
have maintained the plant will not close any time soon, it's
apparent the next worst thing is about to occur.
First Infiniti SUV Made in Mississippi
Nissan Motor Co. announced "job one" for the new
Infiniti QX56, a full-size sports utility vehicle. The first
QX56 rolled off the line at Nissan's new plant in Canton,
Miss. in late January. The QX56 is the fourth model of five
that will eventually be built at the Canton facility. To date,
the plant has rolled out the Nissan Quest minivan, Pathfinder
Armada SUV and Titan pickup in addition to the Infiniti QX56.
The Nissan Altima will be produced at the plant later this
year.
Dana Adding 300 Jobs in Kentucky
Dana Corp. is expanding in Elizabethtown, Ky. The auto parts
maker is adding 300 jobs to its truck frame plant that serves
the Ford assembly facility in Louisville.
Textron Announces Big Deal in Mississippi Delta
Textron Fastening Systems, a $1.65 billion business unit
of Textron Inc., announced on Jan. 19 that it is locating
an automotive parts plant in a 308,000-square-foot vacant
building in Greenville, Miss. The deal will bring over 500
jobs to the Mississippi Delta region. The operation will manufacture
a broad range of custom-designed specialty threaded fasteners
and other precisely engineered fastening and assembly products
for its automotive and industrial customers. The project represents
a capital investment of $35 million. Textron will supply Tier
one automotive suppliers in Mississippi and in other parts
of the Southern Automotive Corridor. Textron is headquartered
in Troy, Mich.
Auto Logistics Concern Moves Processing to Brunswick Port
GLOVIS America, Inc., which processes cars and trucks imported
into the U.S. and exported out for Korean automakers' Kia
Motors and Hyundai Motor America, is consolidating its port
operations from Jacksonville to Brunswick, Ga. The move is
expected to create about 400 new jobs in the port city of
Brunswick. Many of those jobs will be filled by employees
who will relocate from Jacksonville. Brunswick is the fourth-largest
handler of automobiles and trucks on the Eastern Seaboard,
with Audi, Volkswagen and Land Rover moving their products
through the port.
Missouri Governor Touts Automotive
An executive order was signed by Missouri Gov. Bob Holden
in late January creating the Missouri Automotive Partnership.
The partnership will help recruit automotive-related businesses
to the state, as well as conduct research, propose legislation
and lobby policymakers to improve the overall economic climate
for the automotive industry in Missouri. Missouri is home
to domestic automakers' GM, Ford and Chrysler.
Supplier Expanding in NC's Triad
Metzeler Automotive, a manufacturer of window and door seals
for the automotive industry, is spending about $8 million
to improve its existing facilities in Reidsville, N.C. Reidsville
is part of the Greensboro/Winston-Salem/High Point market
known as the Piedmont Triad region. The company is adding
about 75 jobs. The German company, which opened in Reidsville
in 1994, supplies parts to Ford, Chrysler and BMW's facility
in Greer, S.C.
Kia Official Says U.S. Plant Decision May Come in Two
Years
Korean automaker Kia may build its first plant in the U.S.
within two years. Peter Butterfield, CEO of Kia's U.S. division,
said as much at the Automotive News World Congress that was
held in Dearborn, Mich. in early January. Kia sold 237,000
vehicles in the U.S. in 2003 and from Butterfield's comments
in various media outlets following the World Congress, it
looks as if the automaker would like to cut the noose -- at
least publicly -- that ties it to Hyundai, its parent company.
Hyundai will open its first U.S. plant in Montgomery, Ala.
in 2005 and the site it is building on is large enough for
Kia to place a plant there. Yet, Butterfield said if a plant
is built in the U.S. it will not be built next to Hyundai's
factory in Montgomery. We reported U.S. Sen. (Miss.) Trent
Lott's comments made last year, which he believes Kia is the
next automaker to announce a factory in the Southern Automotive
Corridor and that Mississippi will do everything it can to
land it. Our response to Lott's comments were that Kia will
not make a decision on a U.S. plant until a year or two after
Hyundai's plant is up and running. We also predicted that
Kia would look very hard at a site near Meridian, Miss., near
the Alabama and Mississippi border on I-20/59.
Hyundai Expects More Suppliers in Alabama
The years' 2002 and 2003 saw 15 Tier one auto suppliers pick
sites in Alabama. Most of those were in rural counties and
towns in the state. After a lull in supplier announcements
in the fall quarter of 2003, Hyundai officials maintained
the rush to 'Bama isn't over. The Korean automaker expects
eight more primary parts suppliers to pick Alabama for facilities.
The expected total of 23 Tier ones will employ 4,000 in Alabama
and will essentially be located from the state's most northern
counties to its most southern counties.
Nissan's Ghosn Pondering New Plant
Nissan CEO Carlos Ghosn said at the North American International
Auto Show in January that he is already thinking about whether
to expand existing plants in the U.S. and Mexico or build
another assembly facility. Nissan's newest facility, located
in Canton, Miss., has not reached full production as of yet
and the Japanese automaker's massive facility in Smyrna, Tenn.
has expanded numerous times.
Production Increased for Japanese Automakers in 2003
Four of Japan's five largest automakers increased vehicle
production in 2003. The only major Japanese automaker to drop
production in 2003 from 2002 was Mitsubishi. Honda, Nissan,
Mazda and Toyota, which recently overtook Ford as the No.
2 automaker in the world, all increased production last year.
Much of Nissan's rise in production came from its new plant
in Canton, Miss. that opened in 2003.
Another Korean Supplier Lands in Rural Alabama
Yient Alabama Corp., a South Korean auto parts supplier,
announced in early January it would build a $2 million, 25,000-square-foot
plant in rural Tallassee, Ala. The Tier two parts supplier
will make racks, pallets, carts and automation equipment for
tier one suppliers to the Hyundai facility being built in
Hope Hull, Ala. The announcement is expected to create 80
new jobs.
Hella Lighting Expands in S.C.
A supplier of lighting components for DaimlerChrysler, GM,
Ford and Mercedes-Benz is adding 40 workers at its plant in
York, S.C. Hella Lighting Corp., a division of Hella KG Hueck
& Co. of Lippstadt, Germany, is also increasing production
of its automotive headlights and fog lights from 1.8 million
units annually to 2.5 million units. The parts supplier opened
its plant in York, located near Charlotte, in 2000. The plant
currently employs 140 workers.
Siemens VDO Automotive Announces Diesel Systems Group
Siemens VDO Automotive announced in mid-February plans to
establish a North American diesel systems headquarters with
the creation of its Powertrain Diesel Systems North America
division, to be located in Columbia, S.C. The new Powertrain
Diesel Systems headquarters represents a $25 million capital
investment. The facility will employ 120 people. The new HQ
will become a national center for research and development,
engineering, and testing of diesel fuel technology, including
digital valve and piezo electronic fuel injectors, diesel
pumps and fuel rails.
Fed EDA Doles out $3 Million for Toyota Plant
The Economic Development Administration, a division of the
U.S. Department of Commerce, recently gave a $3 million grant
to the city of San Antonio and Bexar County to help fund infrastructure
improvements for the pickup truck plant Toyota is building
in San Antonio. The grant is a small part of the incentive
package San Antonio, Bexar County and the state of Texas promised
Toyota. The Japanese automaker is building an $800 million
assembly plant in San Antonio that will house 2,000 workers
by the end of the first year of operation.
Nissan Training Centers Open
Mississippi State University opened two training and engineering
support centers for Nissan North America in December. The
Center for Advanced Vehicle Research (CAVS) opened at MSU
in Starkville on December 4 and a satellite facility opened
near Nissan's new assembly plant in Canton on December 15.
The centers will help the Japanese automaker develop more
efficient vehicles at the Mississippi plant, as well as develop
manufacturing and design methods for vehicle production. The
Canton center is the engineering component and will also serve
suppliers. Both centers will be operated by Mississippi State
University and will train manufacturing employees at the Canton
plant. CAVS is part of the $353 million incentive package
Mississippi gave to Nissan when it chose the Magnolia State
three years ago for its $1.43 billion plant.
Ford Likely to Refit Atlanta Area Plant
Two years ago, Ford sent site search teams to Georgia to
find a site to replace its 57-year-old Hapeville, Ga. assembly
plant. Two sites farther out of the Atlanta metro area were
chosen. Unfortunately for the state of Georgia, a single site
was not chosen by Ford officials. Ford backed off the plan
to replace the aging facility, located on a mere 128 acres
near the Hartsfield-Jackson Atlanta International Airport.
In December, a Ford official stated that the company would
continue to build Mercury Sables and Ford Taurus's at the
facility for two more years and will likely refurbish the
facility for new models after that, if market conditions are
favorable. The statement is bad news for Georgia, whose legislators
approved $50 million last year to purchase a site in the state
for a new Ford plant. It's bad news in two ways: one, the
decision by Ford to shelve a new replacement plant in the
state means a new supplier network to support a new, modern,
larger facility with much greater capacity is now history.
A new Ford facility would have meant thousands of new jobs
in the state. Secondly, domestic automakers such as Ford are
dealing with overcapacity issues that compute to plant closures,
not new or expanded projects. But that is good news as well.
For one, if domestic automakers close plants, they will likely
be in higher cost areas, not in the South. Secondly, Georgia
happens to be home to one of the best sites for an auto assembly
plant; the former DaimlerChrysler site near Savannah. DC chose
not to build a van plant at that site last year.
Hyundai to Pay $14 an Hour
Officials for Korean automaker Hyundai announced in December
the company will pay production workers $14 an hour when its
new assembly plant near Montgomery, Ala. opens in 2005. The
wage is comparable to the $13.25 an hour Nissan paid its production
workers in Jackson when it opened its plant in May of 2003.
Hyundai officials also announced the wage will jump to $21
an hour for workers that have been at the plant for at least
two years.
Honda SUV to be built in Alabama
Honda officials said in December the company will produce
the Pilot at its new $425 million production line, which is
expected to be operational in April at its plant in Lincoln,
Ala. The original production line, which opened in Lincoln
in 1999, will produce a newly designed Odyssey minivan. With
the addition of the Pilot, Honda will now produce two of its
most popular models in Alabama. Honda will employ over 4,000
workers at the Alabama facility when the Pilot rolls off the
new line in April.
N.C. Tobacco Fund Gives Grant to Motor Sports Study
North Carolina's Golden Leaf Foundation, the manager of one-half
of the state's tobacco settlement funds, has made a $100,000
grant to the University of North Carolina Charlotte for a
study on the economic effect of motor sports in the state.
The report is expected to be completed by summer of 2004.
QUIZ ANSWER
You picked "d" didn't you? Wrong! Motor sports
are big business in Charlotte, N.C. The racing industry has
pumped $20 billion (that's with a "b") in corporate
investment over the last 10 years into the 16-county Charlotte,
N.C. region, which is home to more than 90 percent of NASCAR
teams. Over 400 motor sports companies have created over 200,000
jobs in the Charlotte area. Mooresville, N.C., unquestionably
the center of motor sports in the Charlotte area, is home
of the NASCAR Technical Institute, which trains next generation
pit crews and mechanics, fabrication and engine dynamics.
|
