Southern Auto Corridor - Summer 2016

ALABAMA

With $18 billion pumped into its economy, the auto industry in Alabama contributes about 10 percent of the state’s gross state product. Pictured is the Hyundai assembly plant in Montgomery, Ala. Huge contribution by auto industry to Alabama’s economy

According to M. Keivan Deravi, an economist at Auburn University at Montgomery, the auto industry in Alabama contributes about 10 percent of the state’s gross state product. The figure tabulated by Deravi is more than $18 billion pumped into Alabama from the state’s automotive industry, which includes three major assembly plants and many large suppliers and engine manufacturers. Just in the last year, parts suppliers in Alabama announced projects worth $924 million in investments and more than 2,500 jobs.

 

Toyota’s Alabama engine plant marks 15 years

The Toyota engine plant located in Huntsville is the only engine plant for the Japanese automaker worldwide that produces V-8, V-6 and 4-cylinder engines under one roof. The plant celebrated its 15th anniversary in August. The facility has about 1,350 workers that are housed in more than 1 million square feet of space. The automaker has invested nearly $1 billion in the plant where it produces almost 3,000 engines a day.

 

TVA certifies Huntsville megasite

The Tennessee Valley Authority has certified a 1,252-acre megasite in the city of Huntsville in Limestone County, Ala. The certification means that the site has met TVA’s criteria, including interstate access and rail service. TVA has certified several megasites over the past 12 years, and five sites have large tenants, such as Volkswagen in Chattanooga.

 

Hyundai starts assembling Santa Fe SUV in Montgomery

Korean automaker Hyundai began mass production of the Santa Fe sports SUV in the summer at its plant in Montgomery. The model was previously made at the Kia plant in West Point, Ga. The Santa Fe joins the Sonata and Elantra sedan models at the Alabama plant.

 

Big deal in Montgomery: German auto supplier to build new plant

Gerhardi Kunststofftechnik announced in the summer it will build a new facility in Montgomery. The $37.9 million investment will generate 235 new jobs. Pictured below is the groundbreaking. 

 

Fehrer Automotive expanding in Alabama

Fehrer Automotive is investing $12 million in its plant in Gadsden and adding more than 150 jobs. The company is adding a new hot cure foaming line that will help it produce more foam products for automakers like Mercedes-Benz, Volkswagen and Ford.

 

Korean parts supplier adding jobs in Alabama

Seohan, a supplier to both Hyundai and Kia, is adding jobs in Auburn. The company is investing $9.5 million in new equipment and new jobs, but there is no firm number as of this writing.

 

Auto supplier expands plant in Alabama

Automotive parts supplier Lear Operations is expanding its Vance plant. The company makes seats for the Mercedes C-Class, also made in Vance. Lear will also make seats for the GLE and GLS SUVs made at the plant. The deal will create 500 jobs.

 

Auto parts supplier expands in Alabama

Germany-based Eissmann Automotive is investing $14.5 million in its facility in Pell City. The parts supplier to Mercedes, Audi, VW, Porsche and Tesla is building a new 130,000-square-foot addition for a new production line. The new facility will house 200 workers.

 

FLORIDA

Mercedes-Benz relocating New Jersey engineering division to Jacksonville

Atlanta-based Mercedes-Benz is moving an engineering division to Jacksonville, where it also operates a 500,000-square-foot facility at the International Trade Port. That facility includes sales operations for the Southern region, a parts distribution center and other divisions. The new engineering unit will create 50 jobs.

 

GEORGIA

Chinese tire manufacturer picks Georgia for $500 million plant

Sentury Tire Americas selected a site near LaGrange, Ga., for its first manufacturing plant in the U.S. The company had narrowed its site search to two sites, the Memphis Regional Megasite in Haywood County, Tenn., and the LaGrange site. The $500 million project will generate 600 jobs initially. The company could invest as much as $1 billion in the plant.

 

Manufacturer breaks ground on LaGrange, Ga. expansion

Nesper International, a German manufacturing company, broke ground recently at its facility in LaGrange. The $1.5 million expansion will facilitate manufacturing of plastic and hybrid parts made of plastic and metal, and create 12 jobs.

 

Voestalpine Automotive Body Parts adding 150 jobs in Georgia

Germany-based Voestalpine Automotive Body Parts will spend $50 million to expand its operations in Bartow County, creating 150 jobs. The company currently operates a 100-employee plant about six miles north of Cartersville that makes metal parts for car bodies.

 

KENTUCKY

In the summer quarter, Toyota celebrated 30 years of assembly in Georgetown, Ky. The plant has produced over  10 million cars in 30 years. Kentucky Toyota plant earns high marks from J.D. Power

J.D. Power released its ranking of plants with the fewest number of manufacturing defects worldwide and Toyota’s plant in Georgetown, Ky., tied with the Lexus facility in Kyushu, Japan for the least number of defects. Toyota has been assembling Lexus models in Kentucky — the only place outside of Japan — for more than a year.

 

Kentucky-built Toyota Camry named “most American-made car”

The Toyota Camry, which is built in Georgetown, Ky., was named the most “American-made car” by Cars.com’s 2016 American-made index. The index ranks cars based on the highest percentage of domestic parts used in the assembly process.

 

Toyota celebrates 30th anniversary of Kentucky plant

In the summer quarter, Toyota celebrated 30 years of car assembly in Georgetown, Ky. The plant has produced over 10 million cars in those 30 years. The facility has 8,000 workers under roof and the Japanese automaker has a $1.9 billion payroll in Kentucky.

 

India-based auto supplier investing in Kentucky plant

Rane Ltd., a manufacturer of high pressure aluminum steering and compressor components for the automotive industry, is investing in new equipment and tooling at its plant in Russellville, Ky. The company is investing $5.8 million.

 

Parts supplier expanding in Kentucky

American Howa Kentucky is investing over $7 million in its plant in Bowling Green. The project will create 44 new jobs paying an average of $18 per hour.

 

New auto supplier to open fifth Kentucky plant

Sumitomo Electric Wiring Systems will open a fifth Kentucky plant in Franklin. The company is moving into an existing 65,000-square-foot facility that will house 145 workers.

 

Japanese auto parts maker building Kentucky facility

Japan-based Kobelco Aluminum Products & Extrusions began construction on a new facility in Bowling Green over the summer. The company, a subsidiary of Kobe Steel, will make aluminum bumper beams and frames for the automotive industry.

 

Dr. Schneider Automotive Systems opens expanded plant in Kentucky

Dr. Schneider Automotive Systems opened its new expanded plant in Russell Springs, Ky., over the summer. The expansion doubled the company’s workforce to 300. The company makes vent systems for a variety of automakers. Dr. Schneider has spent $43 million on the facility since it was announced in August 2013.

 

MISSISSIPPI

Mississippi county adds third TVA-certified megasite

Lowndes County, Miss., is now home to a third Tennessee Valley Authority certified megasite. The Infinity Megasite is located west of the Golden Triangle Regional Airport near Columbus, Miss., and the Lowndes County and Crossroads Megasites. The 1,144-acre site features 100 megawatts of electricity, and major water capacity. The community owns the site.

 

According to Mississippi State’s National Strategic Planning and Analysis Research Center, the Nissan plant in Canton, Miss., contributed $2.9 billion in direct and indirect measures. That’s up from $2.5 billion in 2013. Nissan’s economic impact on Mississippi growing

According to Mississippi State’s National Strategic Planning and Analysis Research Center, the Nissan plant in Canton, Miss., contributed $2.9 billion in direct and indirect measures. That’s up from $2.5 billion in 2013. Additionally, local and state tax revenue is up from $180 million in 2013 to $300 million last year.

 

NORTH CAROLINA

The 1,800-acre Chatham-Siler City Advanced Manufacturing Site has received certification from the North Carolina Department of Commerce’s certified sites program. Pictured is Matthew Randle of SB&D and owner Tim Booras at the site. North Carolina megasite certified

The 1,800-acre Chatham-Siler City Advanced Manufacturing Site has received certification from the North Carolina Department of Commerce’s certified sites program. That means most of the engineering and infrastructure work has been completed and it is deemed shovel-ready for large projects. The site is the largest certified site in North Carolina.

 

KPMG certifies N.C. megasite

The Greensboro-Randolph Megasite has been certified by KPMG. The 1,480-acre site in Randolph County passed a lengthy process that evaluated infrastructure and site readiness. The megasite is located about 30 miles south of Greensboro.

 

Japanese tire maker brings R&D to North Carolina

Yokohama Tire is consolidating its research and development to International Business Park in Concord, N.C. The $2.7 million project will create 56 jobs.

 

SOUTH CAROLINA

Volvo export surge good sign for new Volvo plant

The number of cars Volvo exported to the U.S. and other countries from its plant in Gothenburg, Sweden has doubled over the last year. Over 170,000 Volvo cars were exported last year from Gothenburg’s port. It’s an indication Volvo has recovered the carmaker’s brand, which should bode well for the automaker’s plant being built in Berkeley County, S.C.

 

Volvo job seekers crash website

In the late summer, Volvo posted its first slate of job openings on a website for its new $500 million plant being built in Berkeley County, S.C. In two days, the site received 24,000 visits, which were mostly about the job openings. The activity swamped the website until it crashed on the third day.

 

Mercedes-Benz Vans breaks ground on new plant in Charleston

Mercedes-Benz Vans broke ground on its new $500 million van plant in North Charleston, S.C., in the summer quarter. The site for the new plant is next to a facility where Mercedes has been reassembling the Sprinter van model after receiving disassembled vehicles from Germany. The vans were disassembled because of the high duties on importing finished vehicles. The new 1 million-square-foot facility will house 1,300 workers when completed.

 

Honda expanding S.C. ATV plant

Honda announced it is expanding its ATV and SxS vehicle plant in Florence County, S.C. The $45 million project will create 250 new jobs.

 

Another auto supplier captured by Laurens County

Yanfeng Automotive Interiors, the world’s largest supplier of automotive interiors, is making a $71 million investment in a new plant in Laurens County, S.C. The company will supply the nearby BMW plant with a variety of interior components. The project will create 35 new jobs initially.

 

Chinese auto supplier locating plant in South Carolina

JGBR, a Chinese manufacturer of steel balls and ball bearings used in the automotive industry, is locating a new plant in Colleton County, S.C. The company is investing $7 million in the facility in Walterboro and will hire 65.

 

Brose launches new production facility in Spartanburg

Brose North America has signed a lease on a 77,000-square-foot manufacturing facility in Spartanburg, S.C. The $6 million investment will create more than 60 new jobs to produce door systems and systems for on-demand control of cooling air supply for Brose’s automotive customers.

 

Michigan-based parts supplier to build plant in South Carolina

International Mold Corp. is building a new plant in Greer, S.C., where it will supply the nearby BMW plant with floor molding and rim tooling equipment. The project will create 110 jobs.

 

German company that makes chemicals used in tire manufacturing announces big deal in Berkeley County, S.C.

Germany’s Evonik Industries will invest $129.4 million to build a plant in Berkeley County, S.C., that will produce chemicals used in the production of tires. More tires are made in South Carolina than any state in the country. Evonik will hire about 50 workers at the plant.

 

BMW supplier lands in Upstate

Michigan-based Tower International announced in the summer it will invest $75 million to establish its first South Carolina plant in Fountain Inn. The plant will produce metal components and assemblies.

 

Auto supplier expanding in South Carolina

Pure Power Technologies, makers of new and re-manufactured diesel fuel injectors for automakers, is expanding its operations in Blythewood, S.C. The $15 million project will create 79 new jobs in Richland County.

 

BASF adding new line in South Carolina

Auto parts manufacturer BASF is investing up to $60 million at its plant in Seneca, S.C. The company is upgrading equipment to produce a new product used in heavy diesel engines.

 

TENNESSEE

Volkswagen’s German bosses to let North American unit name new SUV

Volkswagen AG is gearing up its Chattanooga, Tenn. assembly plant to produce a second vehicle, this one a seven-seat SUV. The company is spending hundreds of millions of dollars, adding half a million square feet of factory space and hiring 2,000 more workers to build the SUV model. In the wake of its costly emissions scandal, VW officials at its Wolfsburg, Germany headquarters are letting the company’s U.S. unit headquartered in Virginia to name the new SUV. The company wants a distinct name. . .an American name that fits with the region. Exported SUVs made at the Chattanooga plant will assume a different name.

 

Hankook Tire plant taking shape in Tennessee

The 1.5 million-square-foot Hankook Tire plant in Clarksville, Tenn., is soon to be completed. The $800 million plant will house up to 1,800 workers at full production. The South Korean company has also moved its North American headquarters to nearby Nashville. At full production, the new plant’s capacity will be 16,000 tires a day.

 

Bridgestone adding jobs in Middle Tennessee

Bridgestone is adding 450 jobs in Nashville. The company has signed a decade-long office lease in Antioch. The jobs are in addition to the 1,700 employees that will move into the company’s new headquarters being built in Nashville’s SoBro community.

 

Tennessee hopes Chattanooga VW plant will receive some of $2 billion for zero emissions technology

Gov. Bill Haslam said in the summer quarter that he has “strong hopes” that Volkswagen’s Chattanooga plant will get some or all of the $2 billion in spending on zero-emissions technology that was part of the German automaker’s settlement with car owners, states and the federal government in the wake of the diesel emissions scandal. As part of the settlement, VW agreed to a $2.7 billion environmental remediation fund and to invest $2 billion in initiatives to promote the use of zero emissions vehicles in the U.S. Volkswagen will pay approximately $15 billion in the settlement.

 

Supplier to open near GM plant in Tennessee

Tenneco, a manufacturer of clean air and ride performance products, is locating a new plant in Spring Hill, Tenn. The factory will serve the local GM plant. The project is expected to create 175 jobs in three years.

 

Denso breaks ground on $400 million expansion in Knoxville area

Japanese auto parts supplier Denso Manufacturing Tennessee broke ground on a $400 million expansion of its plant in Maryville, Tenn. The company makes a variety of parts for several automakers including Nissan in Tennessee. The expansion will add space and 500 new jobs.

 

Chattanooga Seating Systems expands

Chattanooga Seating Systems will invest $5.4 million to expand its facility, creating 190 jobs in Hamilton County, Tenn. The joint venture of Magna Seating and Hollingsworth Logistics manufactures and supplies seats for vehicles assembled at Volkswagen Chattanooga.

 

Auto supplier expanding in West Tennessee

Automotive parts supplier TBDN is investing $18.8 million in its facility in Jackson, Tenn. The company, which makes oil and air filters and filter housings, is a joint venture between DENSO and Toyota Boshoku. The deal will create 35 new jobs in Madison County.

 

Auto parts supplier locating new plant in Tennessee

Telos Global will invest $32 million in a new plant in Caryville, Tenn. The deal will create 63 new jobs.

 

Gestamp hiring in Chattanooga

Spanish parts supplier Gestamp is expanding its Chattanooga plant as it gears up to make parts for Volkswagen’s new SUV that will be built nearby. The project calls for 115 new workers.

 

International joint venture adding jobs in rural Tennessee

Eurotranciatura USA, a joint venture between Japan-based Kuroda Precision Industries and Italy-based Euro Group S.p.A., is expanding in Paris, Tenn. The company makes steel lamination products for generators and electric motors. The project calls for an investment of almost $13 million and 170 new jobs.

 

TEXAS

Toyota is in the midst of relocating its entire headquarters from Torrance, Calif., to Plano, Texas. As many as 4,000 Toyota employees could move to Texas in the deal. Pictured is a rendering of the facility. Here’s how one California city is trying to stem the tide of companies relocating to Texas

Toyota is in the midst of relocating its entire headquarters from Torrance, Calif., to Plano, Texas. As many as 4,000 Toyota employees could move to Texas in the deal. The chief reason Texas captures so many corporate relocations from California is overall costs, particularly housing costs. The average home in Torrance is in the low $700,000s. The average home in Plano is in the high $200,000s. But Sacramento, Calif., is another story. So many companies are relocating to Dallas-Fort Worth and Austin from California that the Greater Sacramento Area Economic Council is now targeting those same companies in those high costs areas as an alternative to Texas. Sacramento’s pitch to California companies looking to relocate out of the state is that operating costs in the city are similar to those in Texas.

 

VIRGINIA

Spanish car parts maker will establish HQ and plant in Virginia Beach

Barcelona-based car parts manufacturer Sanjo Corte Fina will locate its North American headquarters and plant in Virginia Beach, Va. The company will serve as a supplier to Stihl as well as automotive suppliers. The $17.5 million project will create 85 jobs. 

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