Fall 2011
For real-time news on economic development, business and politics in the American South, go to www.RandleReport.com. For more information on economic development in the South, go to www.SB-D.com and www.SmallTownSouth.com.
Southern-built, foreign-owned and exported worldwide
The U.S. has lost 2.8 million jobs to China alone over the last 10 years. The vast majority of those jobs are in the manufacturing sector and SB&D estimates that over 1 million manufacturing jobs have been lost in the South to China in those 10 years. But the tide is turning and it is doing so fast. No where else is the return of manufacturing jobs to the South more visible than in the automotive industry, where vehicles built in the Southern Automotive Corridor are now being delivered all over the world at a pace never before seen. Toyota is now exporting San Antonio-built Tundra and Tacoma pickup trucks and exports 100,000 vehicles from its four U.S. plants in Blue Springs, Miss., Georgetown, Ky., San Antonio and Princeton, Ind. to 19 foreign countries. Nissan, which operates plants in Canton, Miss. and Smyrna, Tenn., is preparing to begin exporting its vehicles and may even build some models -- some that are not even sold in North America -- in the Southern Auto Corridor strictly for export. Currently, more than half of the models assembled at the Mercedes-Benz Vance, Ala. plant are exported overseas and BMW is expected to export about 70 percent of the X3, X5 and X6 models made at its Greer, S.C. plant to more than 130 global markets. BMW was recently named "Exporter of the Year" by the National Association of Foreign Trade Zones.
Mercedes-Benz adding new production at Alabama plant
German automaker Mercedes-Benz will add a third shift at its Vance, Ala. assembly plant in 2012. The expansion will boost vehicle output at the plant by 30 percent. The third shift is expected to start in August and will raise capacity from 143,000 vehicles to 185,000. The plant assembles the M-Class, GL-Class and R-Class. Within the next two years, when investment at the facility will rise to more than $4 billion, another 1,400 workers are expected to be hired, bringing employment to over 4,200.
Mercedes produces 1.5 millionth Alabama-made vehicle
In December, Mercedes-Benz produced its 1.5 millionth vehicle at its plant in Vance, Ala. The German automaker rolled off a silver ML 350 SUV that was purchased by a customer in Encino, Calif. The first M-Class rolled of the assembly line in Vance on February 14, 1997.
Mercedes begins expansion in Alabama
Construction got underway in December at the Mercedes-Benz plant in Vance, Ala., paving the way for production of the C-Class model. The latest expansion is a $289 million project, part of a $2 billion build-out of the plant that will take place in several phases. Mercedes currently employs 2,800 workers at the facility and once the $2 billion expansion is complete, that total will rise to 4,200.
St. Louis Post-Dispatch courts Mercedes after embarrassing Alabama immigration law event
In November, the St. Louis Post-Dispatch courted Alabama's Mercedes-Benz plant after police in Tuscaloosa arrested Detlev Hager, a 46-year-old Mercedes executive traveling on business in the state. Hager didn't have proper identification on him or in his rental car so under Alabama's new immigration law he was arrested. The Post-Dispatch opinion piece read, "Hey, Mercedes, time to move to a more welcoming state" and "Carpetbaggers never have been treated very kindly in the South, though we would have thought exceptions would have been made for those with SUV factories in their carpetbags." The opinion piece also added, "We are the Show-Me State, not the 'Show me your papers" state. Charges were dropped after an associate delivered Hager's passport and German driver's license, the Tuscaloosa News reported.
Honda hiring at its Alabama assembly plant
Japanese automaker Honda announced in November it is hiring 100 new workers at its plant in Lincoln, Ala. The added workers are part of the company's $84 million capacity upgrade at the plant.
Toyota's engine plant in Huntsville adds 240 jobs
Four-cylinder engine production has come to Toyota's engine plant in Huntsville, Ala. With the launch of the new product, the Huntsville plant now supplies engines for eight different Toyota models. The added line will create 240 new jobs at the North Alabama plant.
Kia's effect on Alabama and Georgia
Two years ago Korean automaker Kia opened its first assembly plant in the U.S. in West Point, Ga. After two years we thought it would be a good idea to update the automaker's economic impact on Alabama and Georgia. The plant itself currently houses about 3,000 workers that build three models working three shifts a day. Two of the largest suppliers to the plant -- Mando and Sewon America -- have expanded several times. The two suppliers are part of a network of 60 in east Alabama and west Georgia that supply the plant. It is estimated that well over 10,000 jobs have been directly created, including assembly plant jobs and supplier jobs.
Kubota to create 200 jobs in north Georgia
Japan-based Kubota Corp. is expanding its Jackson Co., Ga. manufacturing operations with the construction of a new $73 million, 500,000-square-foot facility. The project, which will produce 22,000 compact tractors per year, will create 200 new jobs.
Toyota celebrates 25 years in Georgetown, Ky.
In November, Toyota and Kentucky officials celebrated the 25th year of production in Georgetown, Ky. The company began hiring workers at the plant in 1986. Today, the Japanese automaker employs about 6,600 workers at the facility, which assembles about 500,000 vehicles a year. The Georgetown plant produces the Camry, Camry Hybrid, Avalon and Venza and is one of 14 Toyota plants in North America. Toyota, which also opened its newest plant in Blue Springs, Miss. in the fall quarter, has invested about $5.4 billion at its Kentucky facility. Suppliers to Toyota's Georgetown plant employ about 9,600 workers.
Louisiana's Next Autoworks project officially dead
Two years ago V Vehicle announced it would build an inexpensive fuel-efficient car at the former Guide auto parts plant in Monroe, La. The new automotive assembly project called for 1,400 jobs if a loan from the Department of Energy came through. The application for that $320 million loan was denied by DOE in late November. The company, which changed its name from V Vehicle to Next Autoworks, cited the controversy over the Solyndra bankruptcy as the reason the application was turned down.
Toyota era begins in Mississippi
The first Mississippi-built Toyota Corolla model rolled off the line at the Japanese automaker's plant in Blue Springs on November 17, 2011. The $1.3 billion facility officially opened in November after several delays since it was announced in 2007. The plant can produce up to 150,000 Corollas a year. The current workforce at the facility stands at 1,500 that work a single shift Monday through Friday. Next year, Toyota will add a second shift, which should bring employment at the plant to 2,000. As of the end of the year, seven suppliers have announced facilities in Mississippi to serve the plant.
GM investing $380 million in Missouri
General Motors announced in the fall quarter it will invest $380 million at its Wentzville, Mo. assembly plant to build an all-new Chevrolet Colorado midsize pickup truck. That model is currently being made at GM's Shreveport, La. plant, which is slated for closure this summer. The Michigan automaker will also begin a second shift at the factory to increase capacity of its Chevrolet Express and GMC Savana vans to meet market demand. The two projects will add 1,660 workers to the plant's workforce.
Missouri's automotive industry keeps rolling: Ford expanding KC plant
In the fall quarter, Ford announced its plans to invest $1.1 billion in its Claycomo plant in the Kansas City area. The expansion will add a second shift for production of the F-150 pickup model and add a new line for the assembly of Ford's full-sized Transit van model. It is the first time that model has been assembled in the U.S. The project will create 1,600 new jobs.
Caterpillar opens $426 million Winston-Salem, N.C. plant
One of the largest manufacturing and economic development projects in North Carolina history officially has opened for business. Caterpillar opened its $426 million axle manufacturing plant in Winston-Salem in the fall quarter. According to Steve Wunning, Caterpillar group president who is responsible for resource industries such as mining, the plant will export about 90 percent of the axles made at the facility. The project will create 398 full-time jobs and 112 contract jobs.
BMW's S.C. plant named exporter of the year
Spartanburg Co., S.C.-based BMW Manufacturing has been named exporter of the year by the National Association of Foreign Trade Zones. The German automaker operates a 4-million-square-foot plant in Greer, S.C., which is the only place in the world that assembles the X3, X5 and X6 BMW models. The plant produces about 1,000 vehicles a day and exports about 70 percent of them through the Port of Charleston to more than 125 markets worldwide.
VW's Chattanooga plant can't make enough diesel Passats
The diesel version of the new Passat model -- the TDI -- is selling at double the anticipated rate Volkswagen predicted when it opened its Chattanooga plant last year. Currently, production of the vehicle, which is at 450 a day, can't keep up with demand. In fact, if you ordered a Passat TDI today it would take approximately three or four months to receive it. VW officials said in December they are ramping up production in Chattanooga to meet demand.
GM bringing back assembly to Spring Hill, Tenn.; 1,900 jobs
General Motors announced in late November it will reopen its Spring Hill, Tenn. plant for assembly next year. In an unusual move, GM plans to use the facility as a flexible factory, one that would allow for "real time reaction to sales spikes in a given car or crossover." To start though, GM will invest $61 million and rehire 700 workers to build the Chevrolet Equinox. That model, which GM has had difficulty keeping up with demand, is currently being built in Canada. Later, GM will bring in a new midsize vehicle and invest $183 million and an additional 1,200 workers for that vehicle's debut in the 2015 model year. GM closed its Spring Hill facility for assembly in 2009, but kept its massive stamping operations going to build engines at the former Saturn assembly plant.
5,000 wait in line for 1,600 Nissan jobs in Tennessee
An estimated 5,000 people stood in line in Murfreesboro, Tenn. in November to get a crack at one of the 1,600 jobs the automaker is adding for its new lithium-ion battery plant that is located next to its assembly plant. The jobs will pay an average of $12.50 an hour with benefits.
Arlington, Tex. GM plant in line for another expansion
Mere months after announcing a $331 million expansion of its full-size SUV plant in Arlington, Tex., GM is planning to add a $200 million stamping facility at the auto works. The stamping facility would produce hoods and trunk lids for GM vehicles. The new 300,000-square-foot facility is expected to house 180 more workers.
GM's retooling of Arlington, Tex. plant on schedule
The 57-year-old GM plant in Arlington, Tex. is retooling for another era of auto assembly in Texas. Last spring GM announced it was investing $331 million to expand and retool the facility that builds full-sized SUVs. That retooling, which includes a new body shop, is on schedule according to GM. The Arlington plant is the only U.S. facility left where GM assembles full-sized SUVs such as the Yukon, Tahoe and Escalade models. The expansion project will enable GM's 2,500 employees in Arlington to produce the next generation of large SUVs.
Mazda expands in Richmond metro
Japanese automaker Mazda North America has expanded its remanufacturing and technical center in Chesterfield Co., Va., which is part of the Richmond metro. The expansion comes three years after the company opened a rotary engine remanufacturing plant in Chesterfield. Mazda opened the plant in 2008 to rebuild rotary engines for its RX-8 sports coupe. In 2010, the automaker remanufactured over 5,000 engines. The new expansion enables Mazda to remanufacture automatic transmissions at the facility. The company has added 21 new jobs.
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