Summer 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.
GM to reopen Spring Hill, Tenn. plant
Since the bloodletting of the domestic automotive industry in 2009 and for years before it, the Southern Automotive Corridor has been shocked to its core with domestic automotive assembly plant closures. Just 10 years ago, the South was home to 20 U.S.-owned major assembly plants. That figure was reduced to 11 in 2010 with another closure pending; the GM plant in Shreveport, La., next year. But in September, GM announced it is reopening its Spring Hill, Tenn. plant that was formerly operated by Saturn. The facility boasts what is probably the largest stamping operation in the country. The reopening promises 600 new jobs next year and 1,110 more in 2014. GM closed the assembly line at Spring Hill in November 2009 and pink-slipped 2,000 workers at the plant in the wake of GM's bankruptcy. The plant is expected to be back online by summer of 2012 building one vehicle and another will follow. Plans are for GM to invest more than $400 million in the Tennessee facility. For more information on the South's automotive industry, go to www.SouthernAutoCorridor.com.
What's the hottest automotive market? This year it might be the U.S.
In September, Moody's provided a report that indicated China's light vehicle sales will rise by only 5% this year to 18.1 million units. Thats' a paltry increase considering car sales in China saw a 32% gain in 2010. In the report published in September, Moody's predicts sales of light vehicles to fall 1% in Europe to 14.3 units and sales in Japan are expected to drop 16% to just 4.1 new vehicles sold. The bright spot, with an increase of 8% is the U.S., according to projections. Moody's expects vehicle sales to be at 12.5 million this year in the U.S.
Mississippi-built Toyotas coming soon
At deadline Toyota was producing Corolla models at its new Blue Springs, Miss. plant (TMMMS), but none of them are for sale yet. The Japanese automaker is assembling test vehicles at the plant in order to train line workers. The working assembly line is a long time coming for officials in Northeast Mississippi. Announced in 2007, Toyota planned to open the plant in 2009 or early 2010 to produce the Highlander SUV model. While the plant was being built, Toyota decided to build the Prius model at the facility. Through several delays, it was decided that the plant would assemble the popular Corolla compact model. The 2-million-square-foot facility is expected to house 1,500 workers by the end of the year when official production is expected to be in full swing.
Mercedes investing $2 billion in Alabama plant
One of Alabama's largest corporate investments in its history was announced in late July when Mercedes-Benz revealed details of a $2 billion expansion at its plant in Vance, Ala., located between Tuscaloosa and Birmingham. Daimler AG approved the capital injection into the plant in order to prepare it for assembly of the C-class model, which is being moved to Alabama from Germany. The investment will also pave the way for a retooling of the facility for next generation R-class and G-class models that are currently being assembled at the Vance factory. Also, a fifth model will be made at the plant, a coupe-styled variant of the M-class crossover. Mercedes will assemble sedans in the U.S. for the first time at the Alabama plant beginning in 2014.
New North American Audi plant location decision may occur in October
We've heard this before over the years, but a report in July stated that Volkswagen and Audi officials are checking out sites for a new assembly plant for the upscale German automaker. Audi is part of the Volkswagen brand. VW just opened its new plant in Chattanooga, which, according to VW execs, could be expanded to produce 500,000 vehicles a year. The output currently stands at 150,000. Audi could put a new line in Chattanooga; build a new plant in Mexico or some other location in the Southern Automotive Corridor. VW also has a large plant in Puebla, Mexico. For more information on the South's automotive industry, go to www.SouthernAutoCorridor.com.
Nissan expanding rural Tennessee engine plant
Nissan announced in the summer quarter that it is investing $67.9 million in its engine plant in Decherd, Tenn. The Japanese automaker, which is headquartered in nearby Nashville, will add electric motor production for its Leaf battery-electric cars that will be assembled in Smyrna, Tenn. Up to 150,000 motors will be produced annually at the Decherd facility for the all-electric Leaf model. About 90 jobs will be added at the plant in Decherd.
UAW to represent foreign automaker?
After failing time after time to organize workers at plants owned by Toyota, Honda, Mercedes and Nissan in the Southern Automotive Corridor (www.SouthernAutoCorridor.com), UAW officials announced in the summer quarter that it expects to sign a deal with a foreign automaker in the South by the end of this year. In June, reports indicated that VW officials would be willing to talk to the UAW about organizing its plant in Chattanooga, Tenn.
Hyundai reaches highest output in August
Workers at Hyundai's Montgomery, Ala. plant built 32,300 vehicles in August, the highest output to date this year. The Korean automaker produced 20,997 Sonata sedan models and 11,303 Elantra compacts. Employees at the plant are working 10-hour days and Saturdays to keep up with demand for the two vehicles.
New M-Class rolls off line
In July, Mercedes rolled out the third generation M-class crossover model at its plant in Vance, Ala. At the same time, Mercedes-Benz officials announced that the company would inject $2 billion more into the west Alabama factory.
Annexed farmland in Huntsville has master plan
In 2007 and 2008, Volkswagen took a long hard look at a farm off of Interstate 65 in Limestone Co., Ala. before choosing the Enterprise South industrial park for its first U.S. assembly plant since 1988. During that site search, the city of Huntsville annexed 9,233 acres of the Limestone County land in order to help lure VW. But the site had no master plan or infrastructure in place to serve an automotive assembly plant. Now that there are reports that at least three foreign automakers are looking to build new assembly plants in the Southern Automotive Corridor -- Audi, Volvo and Hyundai/Kia -- the city of Huntsville has developed a detailed master plan for roads, schools, parks, neighborhoods and businesses that could be built around a large industrial user of the property.
Hyundai expanding Montgomery, Ala. engine plant
Hyundai announced in the summer it will expand its engine plant in Montgomery, Ala. The plant makes engines for Hyundai's assembly plant in Montgomery and Kia's plant in West Point, Ga. The expansion will pave the way for the Korean automaker to produce the 1.8 liter Nu engine that will be used in the Elantra model. The $173 million project will create 200 new jobs.
Mayors of Louisville and Lexington, Ky. creating "super region"
Economic development officials and politicos in Kentucky's two largest markets -- Louisville and Lexington -- are coordinating a regional economic development bond. Mayors' Jim Gray of Lexington and Greg Fischer of Louisville are working to develop a "super region" that will market itself initially as a cluster for the automotive industry. Ford operates large facilities in Louisville and one of Toyota's largest U.S. plants is located in Georgetown, Ky., which is near Lexington.
Ford starts hiring process in Louisville
In the summer quarter Ford began the hiring process, taking applications for the 1,800 jobs the Michigan automaker is adding at its Louisville assembly plant. The expansion is part of a $600 million retooling of the plant to build the all-new Escape crossover model. As of mid-September, the plant was in the final stages of overhaul and 2,900 workers are expected to be housed at the facility by the end of the year. Combined with employment from Ford's other truck and SUV plants in Louisville, the Michigan-based automaker will employ nearly 7,000 people in Kentucky's largest market.
Officials discuss future of GM Shreveport plant
Officials with RACER Trust, the organization formed by the U.S. Bankruptcy Court to clean and resell closed GM plants across the country, met with city, parish and state authorities in Shreveport in late July to discuss the plant's future. The plant is scheduled to close in June of 2012. RACER Trust Redevelopment Manager Bruce Rasher said in an article in the Shreveport Times, "Today we forged a very effective partnership between the parish and the Trust. We all share the same goal of seeking a new user for the facility." RACER was formed to clean up and redevelop 89 industrial plants owned by the former General Motors prior to its bankruptcy in 2009. There is still slim hope being expressed by Shreveport officials that the plant will not be closed.
BMW announces new jobs in Spartanburg County, S.C.
BMW has announced plans to create 100 new jobs at its Greer, S.C. plant. The new jobs will include positions for IT professionals, engineers, and production management associates.
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.
next