Southern Auto Corridor News - Winter 2015

For real-time news on business, politics and economic development in the South, go to www.RandleReport.com. For all of the South's announced projects, go to www.SB-D.com. For more information on the automotive industry in the South, go to www.SouthernAutoCorridor.com. And for more information on rural development in the South, visit www.SmallTownSouth.com.


Will Virginia or North Carolina finally land a "Big Kahuna?" 
Various reports point to the center of the Southern Automotive Corridor possibly jogging a little east as both Volvo and Land Rover-Jaguar are rumored to be on assembly plant site searches in Georgia, North Carolina, South Carolina and Virginia. If true, the plants would be a first in the U.S. for the automakers with Chinese and Indian backing respectively. South Carolina is home to BMW and Georgia is home to Kia, the only major automakers with assembly plants in any of these four states. Mercedes-Benz announced in the winter quarter it will build a new $500 million facility in Charleston, S.C., for its Sprinter van. That deal will create 1,300 jobs. As for Land Rover-Jaguar and Volvo, reports indicate that both automakers are interested in a business model similar to that of BMW’s in Greer, S.C., where a large portion of its units are exported via East Coast ports. If so, look for large, rail-served sites in the four states that have double-stack capabilities near deep water ports such as Savannah, Charleston, Wilmington and Hampton Roads as candidates for the two projects. 

 

ALABAMA

Reports: Hyundai to expand Montgomery, Ala., plant
South Korea's Yonhap News Agency reported in March that Hyundai is "considering" building another line at its Montgomery, Ala., facility with an annual capacity of 300,000 units. The Korean automaker currently runs two lines and three shifts (24/7) at its Alabama factory. The plant produced about 400,000 vehicles last year, mostly sedans. The new line, according to the report, would assemble SUVs, and at 300,000 units, it would certainly add at least 2,500 new jobs to the plant. Hyundai does have some land options in Montgomery adjacent to the plant and across Interstate 65 from the complex. However, after the story broke in South Korea and in the U.S., Hyundai officials refuted the report, saying they have not made a decision on where to add much needed capacity. Hyundai Motor Manufacturing Alabama spokesman Jim Trainor said, "There are no plans at this time," to expand the Montgomery facility.

 

Mercedes-Benz R-Class to be made in Indiana, freeing up Alabama plant for GLE Coupe
Military and commercial vehicle maker AM General will start making Mercedes-Benz SUVs this summer under a new, multi-year contract with the German automaker. AM General will make the R-Class, a seven-seat SUV, at its commercial vehicle plant in Mishawaka, Ind. (The R-Class was briefly sold in the U.S., but is now sold exclusively in China.) Mercedes says it needs to move production of the R-Class from its Tuscaloosa assembly plant to make way for a new SUV, the GLE Coupe, and increase production of other models to meet growing U.S. demand.

 

Polaris Industries plans to build a manufacturing facility in Alabama that focuses on the production of off-road vehicles, creating between 1,700 and 2,000 jobs.Polaris lands in Alabama’s Rocket City 
Minnesota-based Polaris Industries will soon break ground on a $142 million manufacturing facility in Huntsville, Ala. From 1,700 to 2,000 industrial workers will produce and develop the company’s off-road vehicles at the 600,000-square-foot facility.

 

FLORIDA

Governor Scott announces 134 new jobs at VOXX International
VOXX International Corporation will expand its automotive components production facility with a new, state-of-the-art manufacturing center in Orlando. The expansion will create 134 jobs, retain 173 jobs, and invest $16.5 million in the community. Voxx will also move its Hauppauge, N.Y.-based headquarters to the new Orlando facility.

 

Volkswagen and JaxPort mean 100 jobs, $3.4 million investment
Volkswagen Group of America is moving its Southeast import and distribution facility to the Port of Jacksonville, Fla., making a $3.4 million capital investment in the project. The cars being brought in will include Volkswagens, Audis and Bentleys. Passats made at the company's plant in Chattanooga, Tenn., will be exported through the port.

 

GEORGIA

Inalfa expanding Georgia sunroof plant. . .more jobs coming
Inalfa Roof Systems -- a Dutch company that opened a $17 million plant last year to supply sunroofs and other roofing to BMW, GM, Nissan and Ford -- plans to construct a second building in Cherokee County, creating at least 300 new jobs.

 

Kia supplier to hire 40 in LaGrange, Ga.
PowerTech America, which makes transmissions for Kia Motors, will hire 40 for jobs at its plant in West Point, Ga.

 

KENTUCKY

Auto supplier adding jobs in Kentucky
Kentucky Chrome works, a supplier of chrome wheels to the automotive industry, is expanding in Horse Cave, Ky. The supplier is adding 63 jobs.

 

Japanese supplier to build new plant in Nelson County, Ky.
Itsuwa, an auto parts supplier based in Japan, will build a new coating and painting facility in Bardstown, Ky. The $5.2 million project will generate 43 new jobs.

 

Auto supplier iwis opens Murray, Ky., manufacturing center
Germany-based automotive supplier iwis invested $12.5 million on its new production facility in Murray, Ky. The plant, which will employ 75 full-time workers, will manufacture timing drive systems for engines.

 

NASCO expansion in Bowling Green, Ky.
NHK of America Suspension Components Inc. (NASCO) will invest $15.2 million to construct a new building next to its existing facility in Bowling Green for the manufacturing of automotive suspension coil springs.

 

Bendix Spicer Foundation Brake has unveiled a multiyear, $8.7 million expansion and improvement project at its Bowling Green, Ky., manufacturing facility.Auto parts supplier adding 75 jobs in Bowling Green
Bendix Spicer Foundation Brake LLC, a maker of commercial vehicle brake and safety systems, is expanded its plant in Bowling Green, Ky. The $8.4 million deal will generate 75 new jobs.

 

Company to bring 115 new jobs to Hopkinsville, Ky.
Douglas Autotech Corp. -- a subsidiary of Japan-based Fuji Kiko Co. -- plans to expand its operations in Christian County. The manufacturer of automotive controls, steering columns and shifters is expected to invest $14.1 million in the project and create up to 115 jobs.

 

Auto supplier adding jobs in Kentucky expansion
Lincoln Manufacturing USA LLC, which manufactures and stamps parts for the auto industry, will create up to 20 more jobs and invest $400,000 in an expansion in central Kentucky’s Lincoln County.

 

LOUISIANA

Roger Boggs, founder and CEO of American Specialty Alloys, spoke to a large crowd in Pineville, La., about the $2.4 billion aluminum manufacturing complex expected to create 1,400 jobs.American Specialty Alloys plans $2.4 billion complex in Central Louisiana
American Specialty Alloys announced plans to develop a $2.4 billion mill and campus in Pineville, La., to provide strong, lightweight metal for the automotive and aerospace industries. With the project, ASA plans to create 850 direct jobs, and another 600 through corporate partners that are expected to perform additional manufacturing and logistics functions on the campus that could be as big as 3,000 acres. ASA selected the former site of International Paper's Pineville mill. "This will be a game-changing mill," said Robert Craig, president of Columbus Recycling, which will source raw materials for the ASA mill and provide other support services. "It will revolutionize the automotive manufacturing industry in the next decade."

 

MISSOURI

Ford begins production of aluminum F-150 in Missouri
Gov. Jay Nixon joined Ford officials and union representatives at the official start of 2015 F-150 production at the automaker's Claycomo assembly plant. The new 150 features an aluminum body and is the first mass-produced aluminum vehicle. The Kansas City Claycomo plant is Ford's largest capacity plant of any Ford plant in the world. More than 7,000 workers are housed at the plant.

 

Ford adds 900 Missouri jobs to support demand for all-new F-150
Ford is adding more than 900 new jobs to its Claycomo assembly plant, making Ford the fifth largest private employer in the metro. The hires are a result of the new 2015 F-150 and other F-Series trucks, which posted their biggest January sales numbers in 11 years.

 

Auto parts supplier plans Missouri center
U.K.-based Universal Components Group (UCG) is setting up a parts warehouse in O'Fallon, Mo. The project is expected to create 31 jobs.

 

SOUTH CAROLINA

South Carolina wins Mercedes expansion and 1,300 jobs
South Carolina was competing with two other states and Mexico for Daimler AG’s new North American plant, where it will build Mercedes-Benz Sprinter vans. The German automaker announced in March it will invest $500 million to build a new Sprinter manufacturing plant on a 200-acre site in North Charleston, alongside the company’s existing factory in Palmetto Commerce Park. Construction is scheduled to begin in 2016, and the factory will employ over 1,000 workers when it’s up and running.

 

Tire makers keep rolling into the Palmetto State
South Carolina solidified its position as the nation’s No. 1 tire maker in 2014. Joining the state’s tire manufacturing cluster this year were Singapore-based Giti Tire and European tire manufacturer Trelleborg. Together the companies plan to invest $610 million and add more than 1,800 jobs over the next few years. Tire makers with an established presence in South Carolina — Michelin, Bridgestone and Continental Tire — opened new plants in Aiken, Anderson, Piedmont and Sumter. 

 

Giti breaks ground on South Carolina plant
South Carolina Gov. Nikki Haley joined Giti Tire Group execs in February to break ground for the $560 million car and light truck tire plant near Richburg. The first tire is expected to roll out in late 2016, as 1,700 employees look on.

 

New center to advance manufacturing in South Carolina
Clemson University and Greenville Technical College officials recently broke ground on a $25 million center that will advance the manufacturing workforce and serve the automotive, transportation and other high-tech sectors. The Center for Manufacturing Innovation (CMI) is a collaboration between a research university, a technical college and manufacturers. 

 

Schaeffler adding 440 jobs in South Carolina
Schaeffler Group USA, which produces components and systems for automotive and industrial applications, is investing $163.8 million in expansions of plants in Chesterfield, Spartanburg and York counties. The German company’s North America operations are based at Fort Mill.

 

TENNESSEE

Nissan plans supplier park, 1,000 more jobs in Smyrna, Tenn.
Nissan North America announced it is investing $160 million in a parts supplier park at its massive assembly plant and battery facilities in Smyrna, Tenn. The park will include a 1.5-million-square-foot logistics center. The park is expected to create 1,000 new jobs or more.

 

Chinese supplier picks Chattanooga for new plant
Yanfeng USA, China's largest manufacturer of automotive interior components and a subsidiary of Shanghai Automotive Industry Corp., China's largest state-owned automaker, has chosen Chattanooga for its first Southern Auto Corridor facility. The company, which will hire more than 300, will produce interior components for VW's new midsize SUV that will be built at the German automaker's plant in Chattanooga.

 

Unipres USA to expand in Portland, Tenn.
Unipres USA, which focuses primarily on stamping, machining and assembly of metal parts for auto bodies, will expand its Portland facilities and create 435 new jobs over the next five years in Sumner County.

 

Volkswagen optimistic about new SUV to be built in Tennessee
VW Chief Executive Martin Winterkorn said last year his company needed just one thing to succeed in the U.S.: “More SUVs.” At the North American International Auto Show in January, Volkswagen unveiled its new Cross Coupe vehicle -- a five-seat concept hybrid that it expects to turn into a seven-seat, three-row vehicle by the time it begins production in Chattanooga in 2016. 

 

Volkswagen CC successor may be built in Chattanooga
A new Volkswagen sport coupe could be in line for production in Chattanooga. According to VW execs, Volkswagen's Sport Coupe Concept GTE, a four-door fastback that debuted in March in Geneva, Switzerland, is close to the production version that will replace the CC and eventually could be built in the U.S.

 

Manufacturing firm to expand, add 90 Tennessee jobs
Jagemann Precision Plastics will expand its Murfreesboro facility to meet demand for its components for the automotive, electronics and solar markets.

 

Denso to expand, add 400 jobs in McMinn County, Tenn.
Automotive supplier Denso Corp. will expand and add about 400 employees at its plant in Athens, Tenn. The Japanese supplier affiliated with Toyota Motor Corp. plans to invest $85 million to expand production of gasoline direct-injection products at its Denso Manufacturing Athens Tennessee unit.

 

VIRGINIA

Auto supplier Dynax America breaks ground on $33 million expansion in Virginia
Dynax America broke ground in February on an expansion that will nearly double the size of its facility in Botetourt County. The expansion is part of a $32.6 million project announced in October that will add 75 jobs to the current roster of 580 employees, making it the county’s largest private employer. Dynax America manufactures transmission parts.

 

WEST VIRGINIA

West Virginia Governor Earl Ray Tomblin (center) led a business mission to Japan in 2012, which included a visit to Hino Motors headquarters there. The company plans to invest $8 million to expand the facility in Williamstown, W.Va., this year.Hino expanding in West Virginia
Hino Motors, a subsidiary of Toyota, is investing $8 million in its truck assembly plant in Williamstown, W.Va. The deal will result in 50 new jobs.  

latest magazine issue
randle report
auto corridor
footer

Southern Business & Development
8086 Westchester Place
Montgomery AL 36117


205.871.1220

SECTIONS MAGAZINE OTHER NEWS