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January 31, 2008
Newly Certified Automotive Site in Virginia
In late January, Virginia Gov. Tim Kaine announced that a 1,500-acre site in Greensville County, Va., had been certified as suitable for automotive assembly operations and other major advanced manufacturing facilities. The site received certification from McCallum Sweeney Consulting. The site, located on Interstate 95 near the North Carolina-Virginia border is the first site in Virginia to receive the megasite certification. It is one of eight sites in the South that have met the program’s high standards. Three of those sites, all in Mississippi, have been sold to Toyota, SeverCorr and PACCAR over the last two years.
VW Plant Update
Officials with the German automaker Volkswagen continue to maintain that the company will break ground on a new U.S. plant in 2008 and it looks like -- if that is true -- a site near a port in Georgia, South Carolina or North Carolina is where it will happen. The Charleston, S.C. metro has a somewhat suitable site and the site in Georgia (the Pooler site), located near Savannah, already has $60 million in improvements in it. That site is ready for any large manufacturer.
But there is one site few people are talking about regarding the VW site search. The site is one Toyota looked at more than a year ago.
There is a 1,500-acre-plus tract located just south of Emporia, Va., and right on I-95, near the Virginia-North Carolina border. That site would naturally be a fit for VW since it recently relocated its North American headquarters to Fairfax, Va.
It should be noted that Nissan recently relocated its North American headquarters to Nashville, a state where its largest U.S. manufacturing plant is located and its second-largest U.S. plant is down the road in Jackson, Miss. Nissan officials claimed that the move was “to be closer to our manufacturing operations in the Southern Auto Corridor and to cut costs.”
Our question then is this: Was the VW relocation of its headquarters a double deal? In other words, VW relocates its HQ to Virginia and they place their first U.S. assembly plant in 20 years in the Old Dominion State as well?
One more thing to note: Throughout my travels recently in North Carolina and Virginia there has been more than one mention about the two states collaborating in an effort to land an auto plant. Since the site is on the two states’ borders, both would benefit from the employment and prosperity offered up by VW. A two state effort will always beat a single state effort when it comes to large automotive facilities.
Furthermore: I know Virginia economic development personnel. And I know North Carolina ED personnel. They are not a quiet bunch. But since the New Year began, they are all as quiet as sleeping mice. Hmm.
Michael C. Randle (Michael@sb-d.com)
Hyundai Supplier Expands in Alabama
Daehan Solutions opened at 40,000-square-foot expansion at its plant in Hope Hull, Ala. The Tier 1 supplier for Hyundai's assembly plant in Montgomery produces carpet, insulation and headliners for the Korean automaker.
Kia Supplier to Locate in Alabama
Korea-based Daeki America announced in the winter it will build its first U.S. facility in Cusseta, Ala., located in rural Chambers County. The $7.4 million deal is expected to create about 80 new jobs. Daeki will supply the new Kia facility being built in West Point, Ga. with car parts as well as Hyundai's plant in Montgomery.
Brake Plant to Lay Off 85
Haldex Brake Systems is eliminating about 85 jobs at its 170-employee brake plant in Prattville, Ala. The company manufactures brake parts for medium and heavy-duty trucks. The facility has been operating in Prattville since 1982.
Johnson Controls Seating Systems Adding 180 New Jobs in Kansas City
Johnson Controls Seating Systems is expanding its operations in Kansas City. The auto parts supplier is investing about $13 million and creating 180 new jobs in the deal.
Alabama Mercedes Plant Could Add another Line
An executive with Mercedes-Benz was reported to say in the winter quarter that the company's only U.S. plant, located in Vance, Ala., could one day produce the C-Class sedan. The C-Class is the German automaker's best selling vehicle. If the C-Class could be assembled in Vance, then it might be likely that the new GLK, a compact sport utility, built on the same frame as the C, could also join the M-Class and others at the Alabama plant.
Continental Laying Off 200 in Huntsville, Ala.
As a result of cutbacks at Chrysler, officials with Continental AG said in December that it will lay off 200 employees at its Huntsville automotive parts plant. In Huntsville, Continental manufactures high-end electronics for audio, dashboard and powertrain systems for the automotive industry and Chrysler is its biggest customer. The company employs about 1,700 workers at the plant, which is located near the Huntsville airport.
Bus Manufacturer to Lay Off 300 in Arkansas
Illinois-based school bus manufacturer, I.C. Corp., will lay off 300 of its 1,300 workers during the winter quarter at its plant in Conway, Ark. The company is Conway's largest manufacturer and has been assembling buses at the facility since it was founded as Ward School Bus Manufacturing in 1933. I.C. is a subsidiary of Navistar, based in Chicago.
GM Plant Increases Vehicle Output
General Motors announced in late December that is plant in Wentzville, Mo., will increase production of vehicles from 40 per hour over two shifts to 42 per hour over the same period.
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