Spring 2009
Volkswagen Building Bigger Tennessee Plant
Bloomberg.com reported on May 14 that Volkswagen AG plans on building a larger plant in Chattanooga than originally proposed. At a wall raising ceremony on Thursday, which was attended by Tennessee Gov. Phil Bredesen, VW CEO Stefan Jacoby and others, Frank Fisher, the plant's CEO said that the expansion comes at a perfect time. Fisher cited low construction costs, the result of the recession, as one reason for the expansion. He also mentioned that the worst is over for the U.S. car market and that recovery will be well underway by the time the new Tennessee plant opens in 2011. VW plans to build 2.4 million square feet of space in Chattanooga as opposed to the original 2 million square feet. A new sedan designed exclusively for the U.S. market will be assembled at the new VW plant.
Mercedes-Benz Announces $290 Million Alabama Expansion
In April officials with Mercedes announced plans to invest $290 million in new equipment and facilities at its plant in Vance, Ala. The expansion will include a 200,000-square-foot addition to the plant's body shop, new robotics and other equipment that will be used to increase production and possibly additional models in the near future at the Alabama facility. The expansion is expected to be completed by October of 2011.
Nissan to Retool Mississippi Plant
Nissan Motor Co. announced in March it is investing $118 million to retool its Mississippi auto plant to produce the Japanese-based company's first U.S. commercial truck vehicle. The expansion will include a new line to produce the NV2500 cargo van. Nissan has partnered with Indiana-based Cummins for diesel engines for the commercial vehicle and Germany-based ZF Friedrichshafen AG for transmissions. Construction has already begun at the Canton, Miss. facility on a 49,000-square-foot paint shop expansion and other improvements have been announced including work on the trim and chassis shops. Nissan will cease assembly on its pickup truck, minivan and SUV models at the plant by the time commercial vehicle production begins in 2010.
Sales of Alabama Made Hyundai's See Mixed Results in April
Hyundai Motor Manufacturing Alabama reported that sales of its Sonata sedan rose 26 percent in April compared to a year ago. However, sales of the Alabama-built Santa Fe SUV dropped 48 percent in April over the last year. Collectively, Hyundai's Alabama made vehicles saw an increase of 1.6 percent for April sales.
Sales of Alabama Made Mercedes Take a Dive
Mercedes saw a dramatic drop in sales for its Alabama-made R-Class, M-Class and GL-Class models. Overall, Mercedes' sales fell almost 48 percent in April compared to a year ago, with only 3,235 Alabama-built vehicles being sold for the month.
China, U.S. Battle for Top in Vehicle Sales
Recent reports show that China's car and light truck sales increased by 25 percent to 1.15 million units in April compared to the same month last year. According to the China Association of Automobile Manufacturers, passenger car sales in April totaled 831,000 compared to 820,000 cars sold in the U.S. The primary reason China has passed the U.S. in vehicle sales is the sharp decline in U.S. sales over the 18 months. U.S. sales for cars and light trucks totaled 16.1 million in 2007 and dropped to a total of 13.2 million in 2008. Automotive experts in China project that U.S. car and light truck sales to go back over the 15 million mark within two years. If that occurs, it will likely put China back in the No. 2 position worldwide.
Volkswagen Contributes $5.28 Million to Educational Institutions in Tennessee
In the early spring quarter, Volkswagen Group of America, Chattanooga Operations, LLC, announced a five-year, $5.28 million philanthropic commitment designed to serve as a catalyst for educational enrichment in the state of Tennessee. The company's "Partners in Education" program includes funding for Fisk University, Hamilton County Public Schools, Oak Ridge National Laboratory (ORNL), Tennessee State University, The University of Memphis, The University of Tennessee-Chattanooga and The University of Tennessee- Knoxville. The program will also leverage and support the Volkswagen Group's relationship with Chattanooga State Community College, the lead institution for work force training at the company's new assembly plant in Chattanooga.
Dr. Horst Neumann, member of the Board of Management Volkswagen AG for Human Resources and Organization; Frank Fisher, CEO and Chairman of Volkswagen Group of America, Chattanooga Operations; and Stefan Jacoby, President and CEO of Volkswagen Group of America, unveiled the philanthropic initiative. Tennessee Gov. Phil Bredesen, Congressman Zach Wamp and representatives from recipient institutions were in attendance at an event announcing the initiative at Calvin Donaldson Elementary School. The school is part of the Hamilton County Public School system, one of the "Partners in Education" fund recipients.
Carbon Motors Announces Five States on Short List for Plant and Campus
Carbon Motors Corp. announced in late March that five U.S. states have made the short list for the location of the Carbon Campus, which will house the entirety of the company's operations. Carbon Motors is a new homeland security company that has developed the Carbon E7, the world's first purpose-built law enforcement patrol vehicle. The company's Web site claims that independent projections forecast that 10,000 new direct and indirect jobs will be created by the project. Formal Request for Proposals regarding a possible plant and campus has been issued to local, state and federal authorities in:
Georgia (Braselton and Pooler)
North Carolina (Charlotte)
South Carolina (Greenville and Spartanburg)
Michigan (Plymouth)
Indiana (Connersville)
Carbon Motors is a Georgia-based company that seeks to assemble the E7, a car designed by law enforcement for law enforcement. The vehicle will feature 360-degree built-in flashing LED lights, suicide rear doors, completely separate and washable suspect compartment and an automatic license plate recognition system. The vehicle will be powered by a 300-plus horsepower diesel engine and will also feature an aluminum unit body.
Honda Sees Highest Sales Total Year-to-Date
Even though Honda's vehicle sales in the U.S. were down 25 percent in April compared to a year ago, the Japanese automaker sold 101,029 vehicles in the U.S. in April. The total represents the highest number of vehicles sold in any month this year. Honda operates one assembly plant in the Southern Automotive Corridor in Lincoln, Ala.
Toyota Loses $7.7 Billion in First Quarter
Topping the losses at General Motors ($6 billion) during the same period, Toyota announced it lost 765.8 billion yen ($7.7 billion) in the first quarter of this year. Toyota cited a sharp downturn in sales in Europe and the U.S. for the massive losses. While battling the loses, Toyota has not closed a single plant worldwide, however, the company has offered buyouts and cut temporary work forces in several countries, including the U.S. Also, there's been no word on what Toyota plans to do with its completed but unopened plant in Blue Springs, Miss.
Volkswagen announces it will Double Chattanooga Production
At the beginning of May, Jill Bratina, VW Group of America's director of corporate communications announced that VW plans to double output at its plant that is now under construction in Chattanooga. The German automaker originally called for 150,000 vehicles to be produced annually at the Chattanooga facility. That number is now expected to be 300,000 during the first year of operation. VW has a goal to sell 800,000 units in the U.S. by 2018.
Kentucky Industrial Park Certified as Megasite
In April, McCallum Sweeney Consulting (MSC) certified the Purchase Region Industrial Park (Kentucky) as a "megasite." Achieving certification means the park has at least 1,000 acres available for a single tenant, rail service, and control of the property among other requirements including geotechnical, environmental and zoning issues. The Purchase site is the first site to contract with MSC directly. The Tennessee Valley Authority contracted MSC to certify eight sites in Tennessee, Mississippi, Alabama and Kentucky over the last five years. Of those sites, five have been sold to large users such as PACCAR and Volkswagen.
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Spring 2009
Volkswagen Building Bigger Tennessee Plant
Bloomberg.com reported on May 14 that Volkswagen AG plans on building a larger plant in Chattanooga than originally proposed. At a wall raising ceremony on Thursday, which was attended by Tennessee Gov. Phil Bredesen, VW CEO Stefan Jacoby and others, Frank Fisher, the plant's CEO said that the expansion comes at a perfect time. Fisher cited low construction costs, the result of the recession, as one reason for the expansion. He also mentioned that the worst is over for the U.S. car market and that recovery will be well underway by the time the new Tennessee plant opens in 2011. VW plans to build 2.4 million square feet of space in Chattanooga as opposed to the original 2 million square feet. A new sedan designed exclusively for the U.S. market will be assembled at the new VW plant.
Mercedes-Benz Announces $290 Million Alabama Expansion
In April officials with Mercedes announced plans to invest $290 million in new equipment and facilities at its plant in Vance, Ala. The expansion will include a 200,000-square-foot addition to the plant's body shop, new robotics and other equipment that will be used to increase production and possibly additional models in the near future at the Alabama facility. The expansion is expected to be completed by October of 2011.
Nissan to Retool Mississippi Plant
Nissan Motor Co. announced in March it is investing $118 million to retool its Mississippi auto plant to produce the Japanese-based company's first U.S. commercial truck vehicle. The expansion will include a new line to produce the NV2500 cargo van. Nissan has partnered with Indiana-based Cummins for diesel engines for the commercial vehicle and Germany-based ZF Friedrichshafen AG for transmissions. Construction has already begun at the Canton, Miss. facility on a 49,000-square-foot paint shop expansion and other improvements have been announced including work on the trim and chassis shops. Nissan will cease assembly on its pickup truck, minivan and SUV models at the plant by the time commercial vehicle production begins in 2010.
Sales of Alabama Made Hyundai's See Mixed Results in April
Hyundai Motor Manufacturing Alabama reported that sales of its Sonata sedan rose 26 percent in April compared to a year ago. However, sales of the Alabama-built Santa Fe SUV dropped 48 percent in April over the last year. Collectively, Hyundai's Alabama made vehicles saw an increase of 1.6 percent for April sales.
Sales of Alabama Made Mercedes Take a Dive
Mercedes saw a dramatic drop in sales for its Alabama-made R-Class, M-Class and GL-Class models. Overall, Mercedes' sales fell almost 48 percent in April compared to a year ago, with only 3,235 Alabama-built vehicles being sold for the month.
China, U.S. Battle for Top in Vehicle Sales
Recent reports show that China's car and light truck sales increased by 25 percent to 1.15 million units in April compared to the same month last year. According to the China Association of Automobile Manufacturers, passenger car sales in April totaled 831,000 compared to 820,000 cars sold in the U.S. The primary reason China has passed the U.S. in vehicle sales is the sharp decline in U.S. sales over the 18 months. U.S. sales for cars and light trucks totaled 16.1 million in 2007 and dropped to a total of 13.2 million in 2008. Automotive experts in China project that U.S. car and light truck sales to go back over the 15 million mark within two years. If that occurs, it will likely put China back in the No. 2 position worldwide.
Volkswagen Contributes $5.28 Million to Educational Institutions in Tennessee
In the early spring quarter, Volkswagen Group of America, Chattanooga Operations, LLC, announced a five-year, $5.28 million philanthropic commitment designed to serve as a catalyst for educational enrichment in the state of Tennessee. The company's "Partners in Education" program includes funding for Fisk University, Hamilton County Public Schools, Oak Ridge National Laboratory (ORNL), Tennessee State University, The University of Memphis, The University of Tennessee-Chattanooga and The University of Tennessee- Knoxville. The program will also leverage and support the Volkswagen Group's relationship with Chattanooga State Community College, the lead institution for work force training at the company's new assembly plant in Chattanooga.
Dr. Horst Neumann, member of the Board of Management Volkswagen AG for Human Resources and Organization; Frank Fisher, CEO and Chairman of Volkswagen Group of America, Chattanooga Operations; and Stefan Jacoby, President and CEO of Volkswagen Group of America, unveiled the philanthropic initiative. Tennessee Gov. Phil Bredesen, Congressman Zach Wamp and representatives from recipient institutions were in attendance at an event announcing the initiative at Calvin Donaldson Elementary School. The school is part of the Hamilton County Public School system, one of the "Partners in Education" fund recipients.
Carbon Motors Announces Five States on Short List for Plant and Campus
Carbon Motors Corp. announced in late March that five U.S. states have made the short list for the location of the Carbon Campus, which will house the entirety of the company's operations. Carbon Motors is a new homeland security company that has developed the Carbon E7, the world's first purpose-built law enforcement patrol vehicle. The company's Web site claims that independent projections forecast that 10,000 new direct and indirect jobs will be created by the project. Formal Request for Proposals regarding a possible plant and campus has been issued to local, state and federal authorities in:
Georgia (Braselton and Pooler)
North Carolina (Charlotte)
South Carolina (Greenville and Spartanburg)
Michigan (Plymouth)
Indiana (Connersville)
Carbon Motors is a Georgia-based company that seeks to assemble the E7, a car designed by law enforcement for law enforcement. The vehicle will feature 360-degree built-in flashing LED lights, suicide rear doors, completely separate and washable suspect compartment and an automatic license plate recognition system. The vehicle will be powered by a 300-plus horsepower diesel engine and will also feature an aluminum unit body.
Honda Sees Highest Sales Total Year-to-Date
Even though Honda's vehicle sales in the U.S. were down 25 percent in April compared to a year ago, the Japanese automaker sold 101,029 vehicles in the U.S. in April. The total represents the highest number of vehicles sold in any month this year. Honda operates one assembly plant in the Southern Automotive Corridor in Lincoln, Ala.
Toyota Loses $7.7 Billion in First Quarter
Topping the losses at General Motors ($6 billion) during the same period, Toyota announced it lost 765.8 billion yen ($7.7 billion) in the first quarter of this year. Toyota cited a sharp downturn in sales in Europe and the U.S. for the massive losses. While battling the loses, Toyota has not closed a single plant worldwide, however, the company has offered buyouts and cut temporary work forces in several countries, including the U.S. Also, there's been no word on what Toyota plans to do with its completed but unopened plant in Blue Springs, Miss.
Volkswagen announces it will Double Chattanooga Production
At the beginning of May, Jill Bratina, VW Group of America's director of corporate communications announced that VW plans to double output at its plant that is now under construction in Chattanooga. The German automaker originally called for 150,000 vehicles to be produced annually at the Chattanooga facility. That number is now expected to be 300,000 during the first year of operation. VW has a goal to sell 800,000 units in the U.S. by 2018.
Kentucky Industrial Park Certified as Megasite
In April, McCallum Sweeney Consulting (MSC) certified the Purchase Region Industrial Park (Kentucky) as a "megasite." Achieving certification means the park has at least 1,000 acres available for a single tenant, rail service, and control of the property among other requirements including geotechnical, environmental and zoning issues. The Purchase site is the first site to contract with MSC directly. The Tennessee Valley Authority contracted MSC to certify eight sites in Tennessee, Mississippi, Alabama and Kentucky over the last five years. Of those sites, five have been sold to large users such as PACCAR and Volkswagen.
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