Prognosis?

So far, the largest industry in the South is hanging in there The U.S. automotive industry has weathered the first wave of the coronavirus fairly well, somehow avoiding parts shortage as Chinese parts plants closed. Some U.S. plants actually flew in parts from around the world, a costly way of shipping.

While automakers in the South avoided shortage, now a new threat has emerged. With each day that the U.S. economy is shut down, disposable incomes are getting hammered. A look back at SB-D.com archives of the SouthernAutoCorridor department or cover stories from 2008 to 2011, is a reminder that the U.S. automotive industry lifted the United States out of the last recession. Now, with this completely different situation, automakers could be forced to reduce spending, and slow or even close assembly plants. Many Southern Auto Corridor plants are closed temporarily as I write this at the end of March.

Adam Jonas, a veteran analyst at Morgan Stanley, in an article in U.S. News in March, sees sales in the U.S. this year drop by 9 or 10 percent, or to 14 million from 17 million last year.

EDITOR’S NOTE: Many of the projects listed here were announced prior to the coronavirus outbreak. 

 

ALABAMA

The overall automotive industry is in flux, but not in Alabama
Nashville-based Nissan is cutting production worldwide. GM closed several plants last year in North America. Some plants in the Southern Auto Corridor have halted production, at least temporarily, because of the coronavirus.

But in Alabama, all four of the state’s automakers are expanding, even though the three in production have halted the assembly lines temporarily in late March as a result of the pandemic. Alabama is fifth largest in the nation in production of cars and light trucks. It is the third largest state in vehicle exports. Here is what is going on as of the winter quarter at Alabama’s automotive plants: Mercedes-Benz in Tuscaloosa, Ala., is completing a $1 billion expansion; Honda in Lincoln, Ala., is undergoing an $85 million expansion; Hyundai in Montgomery, Ala., in the midst of a $410 million expansion; Mazda Toyota in Huntsville, Ala., is constructing a new, $1.6 billion plant.

Mazda Toyota accepting applications for Huntsville plant
Mazda Toyota has started accepting applications for production line positions at its new plant in Limestone County, Ala. As of January, the company announced it is accepting applications for 3,000 positions.

Hyundai made more vehicles at Alabama plant in 2019
South Korea-based Hyundai announced in the winter it produced 336,000 vehicles in 2019 at its plant in Montgomery. The total was about 4 percent higher than in 2018. The Santa Fe SUV led all vehicles made at the plant last year. The facility also assembles the Sonata and Elantra sedans.

Auburn auto supplier plans $24 million expansion
Germany-based wheel manufacturer Borbet Alabama is planning a $23.9 million expansion of its Auburn operation, creating 25 jobs over the next two years. The company makes light metal alloy wheels for the automotive industry.

Automobile terminal at Alabama State Docks will create jobs
An automobile terminal is being constructed at the Alabama State Docks in Mobile. The $60 million, 57-acre terminal will handle shipments of finished automobiles. . .up to 150,000 vehicles annually. The project is a joint venture between Terminal Zarate, based in Argentina, and Neltume Ports based in Chile.

Auto supplier plans to expand in Jasper, Ala.
Based in Michigan,Michigan Hayashi Telempu North America is ramping up production at its plant in Jasper, Ala., to supply the Mazda Toyota plant being built in Limestone County, Ala. Hayashi Telempu manufactures interior components. The expansion will bring employment at the plant to 125.

Truck manufacturer breaks ground on Alabama expansion
Navistar broke ground on an expansion of its plant in Huntsville in the winter quarter. The company assembles commercial trucks and buses. The deal is expected to result in 145 new jobs, doubling the plant’s current workforce.

 

GEORGIA

Korean battery maker begins hiring 2,000 in Georgia
SK Battery, a South Korean maker of lithium batteries, has started hiring for its new plant in Jackson County, Ga. The company is expected to hire 2,000 workers.

Georgia lands first Korean supplier to car battery plant
Georgia has landed the first Korean suppler to the electric vehicle battery plant that will serve as the single largest foreign investment in the state’s history. EnChem, which makes electrolytes that go into rechargeable lithium batteries, will build two separate facilities next to the nearly $1.7 billion SK Innovation plant in Jackson County. Combined, the two locations will create 300 jobs with an investment of $61.35 million.

Toyota Financial Services opens hub in Georgia
Toyota Financial Services — the finance and insurance brand for Toyota in the United States — will open a new office in Alpharetta and become one of three “hub” locations for the company that supports automotive dealers across the nation. The investment of more than $8 million will bring 150 new jobs to Fulton County.

Auto supplier to build new plant in Georgia
Japan-based Mitsui Kinzoku Die-Casting will build a new plant in Spalding County, Ga. The company will invest $20 million in the facility and hire 30 workers to make parts for electric vehicles.

 

KENTUCKY

WABCO expands Kentucky distribution hub
WABCO plans to triple its employment as it invests over $3 million in the distribution portion of its heavy duty truck parts manufacturing and warehousing facility in Hebron, where it currently employs 77 people.

Clark Material Handling completes expansion in Lexington
Clark Material Handling announced the completed expansion of its third facility in Kentucky. The Lexington-based company is a manufacturer of forklift trucks and spare parts.

Manufacturer expands Kentucky plant
Logan Corporation, a dump truck bed manufacturer, will expand its plant in Salyersville, Ky. The company plans to invest $1.2 million.

 

MISSOURI

GM investing $1.5 billion in Missouri expansion
General Motors recently confirmed it will invest $1.5 billion to produce its next-generation Chevrolet Colorado and GMC Canyon midsize pickups at its plant in Wentzville, Mo. The plant, where the Chevy Colorado and Express, and the GMC Canyon and Savana are built, currently employs about 4,000 hourly and 330 salaried employees. The announcement represents one of the largest single investments from the private sector in Missouri.

 

NORTH CAROLINA

Auto parts manufacturer to build second plant in the Charlotte Region
Cataler North America Corporation, a manufacturer of catalysts for automobiles and engines, will build a new manufacturing plant in Hickory, creating 151 jobs. The Japanese company will invest a minimum of $42 million in the project in
Catawba County.

Battery maker to invest $10 million in Greensboro
Sunlight Systems, a battery maker based in Greece, announced it will open its first U.S. facility next year in Greensboro. The company will invest $10 million and create 46 jobs. Sunlight Batteries will assemble and distribute lithium batteries from the facility.

 

SOUTH CAROLINA

Volvo building U.S. battery assembly plant
In preparation for bringing a new line of electric vehicles to the U.S. market, Volvo announced it will build a battery assembly plant at its existing facility in Ridgeville, S.C. The plant is part of a $600 million expansion project there, which began rolling out the Swedish automaker’s luxury sport sedan, the S60, in late 2018. The current expansion also includes a second production line for an electrified version of its flagship XC90 crossover. Approximately 1,000 jobs will be created for the XC90 production line, but no word yet on how many jobs might be created for the battery assembly plant.

Auto supplier’s $58 million expansion in Anderson
NTN Driveshaft has announced a $58 million expansion and the addition of 140 new employees at its facility in Anderson. The company, headquartered in Japan, first announced the construction of a new plant in Anderson in 2016 with an initial investment of $84.5 million and the creation of 300 jobs.

Chassis manufacturer expands in South Carolina
Freightliner Custom Chassis Corporation, a manufacturer of vehicle chassis, is expanding its plant in Cherokee County, S.C. The almost $14 million expansion will create 193 jobs.

Pierburg expanding in Greenville County
Pierburg, a manufacturer of components for air supply and emission control, announced plans to expand its existing operations in Greenville County. The $27 million investment will create 95 new jobs. Pierburg is one of three brands under the Rheinmetall Automotive group.

Global Lending Services plans $4.2 million expansion in Greenville
Global Lending Services, an automotive lending company, will invest more than $4.2 million to expand its current operations in Greenville, creating 669 new jobs. The company has developed technology to approve customers at competitive rates in less than 20 seconds.

 

TENNESSEE

General Motors plans major expansion in Tennessee
General Motors plans to invest $40 million at its Global Propulsion Systems plant in Spring Hill, Tenn. The project will increase capacity of the 5.3L V8 engines for GM’s full-size trucks and SUVs.

Volkswagen Chattanooga ramps up hiring
Volkswagen Chattanooga announced its goal of hiring up to 600 production employees over the next three months. “As we continue to grow our Tennessee operations as Volkswagen’s North American hub for electric vehicle manufacturing, we must also grow our team,” said Tom du Plessis, president and CEO of Volkswagen Chattanooga.

Ficosa to add 100 jobs in Tennessee
Michigan-based manufacturer of vehicle mirrors and other parts, Ficosa, will discontinue operations at its facility in Shelbyville, Ky., and move the plant’s manufacturing activity to its facility in Cooke-
ville, Tenn. The consolidation will result in 100 new hires at the Cookeville location.

Auto supplier to expand in Tennessee
Michigan-based Adient is investing over $23 million in its automotive seating plant in Lexington, Tenn. The expansion project will create 330 jobs.

Chinese auto supplier expands in Tennessee
China-based Minth Group, a designer and manufacturer of structural body, trim and decorative parts for the automotive industry, will invest $87 million to expand operations in Lewisburg, Tenn. The supplier will create 254 new jobs in Marshall County.

AutoZone readies for Memphis expansion
A building permit was just filed for AutoZone’s previously announced $145 million downtown digital expansion project. In addition to work at AutoZone’s headquarters, the expansion will also include two other buildings in Memphis. In total, the project is expected to create 130 jobs.

Auto supplier expands in Henderson, Tenn.
Automotive products manufacturer Arvin Sango will expand its existing operations in Henderson. The company supplies stamped auto body parts and door safety parts for the automotive industry. Its customers include Toyota and Nissan. Sango Co. is headquartered in Japan, and Arvin Sango is headquartered in Indiana. The company is expected to create 153 jobs in Chester County.

 

TEXAS

GM completes $1.4 billion expansion of its large SUV plant in Texas
General Motors has completed the $1.4 billion expansion of its SUV plant in Arlington, Texas. The automaker celebrated by unveiling new generation Chevy Suburban and Tahoe models. The 1.6 million-square-foot addition to the plant that was built in 1954 will bring total square footage to 5.75 million.

GM Arlington moving 300 temps to full-time
Close to 300 temporary workers at General Motors’ largest assembly plant in Arlington, Texas, are being moved up to full-time status, the automaker announced recently. Nationwide, more than 1,350 hourly GM employees at 14 manufacturing plants and other sites in eight states will be elevated to full-time status.

Texas-based Toyota invests $394 million into flying taxis
Toyota Motor Co. is making a $394 million investment in California-based Joby Aviation, one of the handful of companies with the goal of making electric air taxis that shuttle people over gridlocked highways and city streets. Toyota is the lead investor, and makes Joby the best-funded “eVTOL” (electric vertical take-off and landing) startup in a booming category that must still overcome regulatory hurdles and concerns about passenger safety and noise. Joby has raised a total of $720 million.

Major changes at San Antonio Toyota plant
Toyota officials announced in the winter quarter model changes at their plant in San Antonio, Texas. The plant will stop assembling its best-selling Tacoma pickup truck and move all of that production to a plant in Mexico. To fill the gap of Tacoma truck production, the Japanese automaker will move assembly of its lowest-selling vehicle, the Sequoia SUV, from its plant in Indiana to San Antonio in 2021. Toyota officials said that the San Antonio plant has been at maximum capacity since 2016 and that the move will “make room for market growth and achieve long-term sustainability of future production in San Antonio.” Some auto industry officials speculated that the move will give Toyota the ability to produce more SUVs at the Texas plant in the future. The plant has been open since 2006, and to date, has only produced pickup trucks. Toyota will continue to produce the full-size Tundra pickup there.

Continental to invest $100 million in Texas
Michigan-based Continental, an automotive parts manufacturer, is investing $100 million in a new plant in New Braunfels, Texas. The project will retain 400 jobs and create 130 more. The company will make radar sensors for the automotive industry at the new facility.

 

VIRGINIA

Four hundred new jobs for Chesterfield County, Va.
Carvana, an e-commerce platform for buying and selling used cars, plans to invest $25 million to establish a new vehicle inspection and reconditioning facility in Chesterfield County. The project will create 400 new jobs.

New trucking plant will create 250 jobs in Roanoke
Mack Trucks recently unveiled its brand-new Roanoke County facility. The $13 million Roanoke Valley Operation will provide 250 jobs.

Truck manufacturer to expand in rural Virginia
Custom Truck One Source, a manufacturer of specialized trucks and heavy equipment, is investing $2.6 million to expand its operations in Bedford County, Va. The project will create 61 jobs.