Exports of U.S.-made German vehicles drops significantly

There are four German automotive plants in the U.S., and they are all located in the South. Mercedes-Benz operates plants in Alabama and South Carolina, BMW’s largest plant worldwide is in South Carolina, and Volkswagen operates a large plant in Tennessee. The German automakers count on exports to China and Europe. Last year, German automakers produced 750,000 vehicles in the Southern Auto Corridor, of which 56 percent were exported to Europe and China. However, as a result of tariffs, exports to China fell by 37 percent in 2018, dropping from 150,000 vehicles to 95,000.

Moody’s cuts automotive industry from stable to negative
Credit rating company Moody’s has cut its outlook for the automotive industry from stable to negative. Moody’s based its outlook on slowing economic growth, potential political issues such as tariffs, and a better-than-expected end to 2018 in vehicle sales. Moody’s expects global auto sales to grow by just 0.5 percent this year, down from its previous forecast of 1.2 percent growth.

Toyota to invest $749 million and add hundreds of jobs in the South
In the winter quarter, Japanese automaker Toyota said it will invest $749 million in five Southern states and add 600 jobs. The company will increase engine capacity in Alabama, transaxle production in West Virginia, add capacity at its assembly plant in Kentucky, and raise output of aluminum castings in Missouri and Tennessee. Toyota is also building a 4,000-employee plant with Mazda in Huntsville, Ala.

ALABAMA

Mercedes-Benz to assemble ultra-luxe Maybach SUV at Alabama plant
Mercedes announced in the winter quarter that it will expand its plant in Vance, Ala., to build a luxury SUV under the Maybach brand. At $200,000, the vehicle will be the most expensive passenger car built in the U.S. The company is also in the early stages of a $1 billion upgrade to ready the facility to build its first electric vehicles.

Expansion work nearly completed at Montgomery Hyundai plant
Work is well underway for Hyundai’s engine head machining plant along with other improvements at Hyundai’s massive auto assembly plant in Montgomery. Hyundai is investing $388 million on the expansion. The engine plant will be able to support 700,000 engines per year for Sonata and Santa Fe models that are built in Montgomery and at the Kia plant in West Point, Ga. The new facility will be operational in May.

Alabama made almost 1.6 million engines in 2018
Mazda and Toyota are building their joint plant in Huntsville, the latest automotive plant to announce a facility in the state. Soon, Mazda and Toyota will join Honda, Hyundai and Mercedes-Benz in making Alabama the only U.S. state to be home to four foreign-owned assembly plants. In addition, Alabama workers built almost 1.6 million engines in calendar year 2018. Toyota’s engine plant in Huntsville led the way with 630,000 engines built. Hyundai’s plant in Montgomery produced 597,000 engines and Honda’s plant in Talladega County produced 356,000 engines.

Korean auto supplier setting up shop in Alabama
A Korean supplier to Hyundai Motor Manufacturing of Alabama plans to open its first U.S. facility in Alabama’s Lee County. Yongsan Automotive USA is investing more than $5.5 million in a manufacturing facility in Opelika. The interior parts manufacturer will create 150 jobs in the deal.

Israeli auto parts supplier expanding in Auburn, Ala.
Arkal Automotive has invested $2.5 million and is adding 25 jobs to expand its Auburn facility. The company supplies plastic parts to Mercedes-Benz, BMW, Volkswagen and Audi.

GEORGIA

Battery maker breaks ground on $1.7 billion Georgia plant
SK Innovation, a South Korean maker of batteries for electric vehicles, broke ground on its $1.7 billion factory in Jackson County, Ga., in March. The company will initially provide batteries for Volkswagen’s plant in Chattanooga. The deal will create 2,000 jobs.

Korean brake manufacturer to open new Georgia facility
Sangsin Technology America, a manufacturer of brakes used by Hyundai and Kia, is opening a new plant in McDonough, Ga. The $20 million project will create 200 jobs.

Kia begins export of new Georgia-built SUV
Georgia Port officials and executives with Kia Motors Manufacturing Georgia (KMMG) celebrated in February the first exports of the new eight-person SUV called the Telluride. The Telluride is a new model being built at Kia’s plant in West Point, Ga. The SUVs are being shipped from the Port of Brunswick to ports around the Arabian Peninsula.

KENTUCKY

Toyota will invest $238 million in its Georgetown plant
Toyota is expanding its Kentucky assembly plant and adding the production of the Lexus 300h Hybrid and the RAV4 Hybrid. Both vehicles feature combined gasoline and electric engine power. The project calls for an investment of $238 million. The expansion will not add jobs to the 8,000-employee plant.

Ford expanding Louisville Truck Plant
Ford will add capacity of the Ford Expedition and Lincoln Navigator at its truck plant in Louisville, Ky. Ford will move 550 workers from its Louisville SUV plant to the truck plant in the deal.

LOUISIANA

Super ATV to locate in Louisiana
SuperATV will locate a manufacturing and distribution facility in Shreveport, La. The company manufactures aftermarket parts for a variety of all-terrain vehicles. The $4.35 million deal will  create 75 jobs.

NORTH CAROLINA

New North Carolina megasite planned
A former 3.5 million-square-foot tobacco factory in Concord, N.C., will be demolished to make way for a 2,000-acre megasite. The demolition of the sprawling Phillip Morris operation will take the rest of the year. When completed, the site will be called The Grounds at Concord.

SOUTH CAROLINA

Mercedes-Benz Vans hiring for third shift
Mercedes-Benz Vans has begun hiring for a third shift, with a goal of adding 200 to bring its headcount to 1,300 workers by 2020 to build the new Sprinter vans. The German automaker invested $500 million in 2015 to expand its existing reassembly site in Ladson to a full-scale manufacturing operation.

Volvo begins exports of model made in South Carolina
Sweden-based and Chinese-owned Volvo has begun exports of its S60 model sedan made near Charleston in Ridgeville, S.C. The automaker expects to build 50,000 S60s at its plant this year with plans to export about half through the Port of Charleston to 93 countries. The South Carolina-made vehicle will not be exported to China amid trade battles between the U.S. and China.

New megasite in the South is ready for occupant
The I-77 International Megasite is now ready for a single occupant in Fairfield County, S.C. The 1,500-acre site is about 20 miles north of Columbia, S.C., and 60 miles south of Charlotte. The site is designed for a single user. A labor force of nearly 850,000 people, and more than 20 vocational and technical training facilities are within an hour’s drive or less.

Auto supplier to set up shop in South Carolina
Fuyao North America is investing $16 million in a facility in Fountain Inn, S.C. The company, which makes automotive glass, will hire 70 in the deal.

QM Group expanding in Orangeburg County, S.C.
Quality Model (or QM) is expanding its plastic injection molding operations in Orangeburg, where it makes products for the automotive industry among others. The move will create 37 new jobs and involves a $9.5 million investment.

PPG invests $10 million in Greenville, S.C.
PPG will invest $10 million in a new 82,000-square-foot facility and class A paint line at its coatings services facility in Greenville. The expansion is designed to accommodate increased demand for class A coatings application and value-added services for the automotive and large truck markets.

TENNESSEE

GM unveils new Cadillac SUV being built in Tennessee
General Motors, which recently announced the closure of five North American factories, unveiled the 2020 Cadillac XTC, which will be assembled at its plant in Spring Hill, Tenn. GM invested $300 million in its Tennessee facility to create a line for the XTC, and has invested more than $2 billion in the plant since 2010. The Spring Hill facility is GM’s largest, encompassing 7.1 million square feet.

New report shows Volkswagen supports thousands of jobs in Tennessee
A report by Ernst & Young showed that Volkswagen’s plant in Chattanooga supports 16,400 jobs in Tennessee. The report also showed that $73.8 million in state and local taxes were generated by the VW plant and its suppliers in the state in 2017.

Volkswagen to assemble electric vehicles at its Tennessee plant
German automaker Volkswagen has chosen its Chattanooga plant for the company’s first electric vehicle facility in North America. VW will invest $800 million to retrofit the plant for electric vehicle production. The first EVs are expected to roll out of the plant in 2022. About 1,000 jobs are being generated in the expansion.

Nokian to begin hiring at Tennessee tire plant
Finnish tire maker Nokian, which is on target to complete construction of its $360 million plant later this year in Dayton, Tenn., said it plans to hire up to 50 production employees during the first quarter of 2019.

Arconic investing $110 million at its Tennessee facilities
Arconic is investing $100 million to expand its facility in Alcoa, Tenn., in a project that will bring 70 new jobs to the area. Arconic plans to get out of the aluminum can sheet business and ramp up industrial and automotive aluminum products.

Auto supplier announces $11.4 million Middle Tennessee investment
Togo North America will invest $11.4 million to establish a production facility in Robertson County, where it plans to create 58 jobs over the next five years. The Japan-based company makes automotive parts ranging from hose clamps to various springs.