Southern Auto Corridor News

September 2024

REGIONAL/NATIONAL

Foreign automakers out produce domestics for the first time in 2023

Reports from Autos Drive American and the American International Automotive Dealers Association says international automakers made 4.9 million light vehicles in 2023 and Detroit’s Big 3 — GM, Ford and Chrysler — produced 4.6 million.

ALABAMA

Automakers contribute $10.8 billion to Alabama, report says

Alabama’s four assembly plants and affiliated factories contributed $10.8 billion to the state’s economy last year. That’s according to a new report from Autos Drive America and the American International Automobile Dealers Association (AIADA). According to the report, the auto industry has invested $14.5 billion in Alabama.

Last year, Mercedes-Benz, Honda, Hyundai and Mazda-Toyota produced 1.124 million vehicles, with $10.7 billion in autos purchased from U.S. suppliers.

In 2023, Alabama’s automotive industry created 88,947 total jobs, generating $6.4 billion in total compensation. That includes more than 17,000 direct jobs and 64,000 indirect jobs. According to the report, every direct auto-making job supports 3.5 additional jobs in Alabama. In revenue, the industry generated $892 million in state and local taxes, and $1.5 billion in federal tax receipts.

Alabama announces new EV workforce training center to support automotive industry growth

Governor Kay Ivey announced in the summer that Alabama is building a $30 million workforce training center in Decatur that will focus on electric vehicles and emerging technologies in order to position the state’s auto industry for the next chapter of its growth. The facility will be located on the campus of the Alabama Robotics Technology Park, a unique $73 million center operated by AIDT that helps companies train workers on advanced R&D and manufacturing technologies.

Auto parts supplier opens in rural Alabama

Commerce Secretary Ellen McNair joined officials of Samkee Corp. and local leaders last quarter to mark the opening of the auto parts maker’s new production facility in Tuskegee Commerce Park. South Korea-based Samkee invested $128 million to build its first U.S. factory, which will employ over 170 people at full operation while providing a massive economic boost for rural Macon County. “Samkee is a first-class addition to Alabama’s dynamic auto industry, and the opening of this state-of-the-art facility in Tuskegee demonstrates that the industry continues to gain horsepower in the state,” Commerce Secretary McNair said.

Shape Corp. celebrates opening of second Alabama production facility

Shape Corp., a global Tier 1 automotive supplier, officially opened its second Alabama production facility after completing a $74 million growth project that will create over 100 jobs in the coming year. Michigan-based Shape, which opened a plant in nearby Athens in 2016, held a ribbon-cutting ceremony at the new 202,306-square-foot facility in Southpoint Industrial Park. “This new facility represents our ongoing commitment to innovation and excellence in the automotive industry,” said Mark White, president and CEO of Shape Corp. “By expanding our operations in Alabama, we are not only increasing our production capabilities, but also investing in the local community through job creation and economic growth.”

Korean parts maker expanding in Opelika, Ala.

Auto parts maker Daewon is planning a $46.2 million expansion in Opelika, Ala., that will create 100 jobs.

Toyota begins production on new engine line in Huntsville, Ala.

Toyota Alabama announced that it has begun production of its i-FORCE 2.4-liter turbo engine line at its Huntsville engine plant, culminating a $222 million corporate investment in the project. The 2,000-employee plant will provide powertrains for the new Tacoma pickup.

ARKANSAS

EV startup scratches Arkansas from its site list

Electric vehicle manufacturer Canoo Technologies announced in November 2021 that it was moving its corporate headquarters from Texas to Bentonville, Ark., and planning a research and technology center in Fayetteville. That is unlikely to happen now as the warehouse in Bentonville, where Canoo was to being EV assembly, is now up for sublease, a few years after the company signed a 10-year lease. According to Canoo, they never moved in because they could not secure a second site in the area to house headquarters.

Hino Motors closing large plant in Arkansas Delta

A couple of decades ago, Toyota and its site selection guru, Dennis Cuneo, scouted a megasite across the bridge from Memphis in Marion, Ark., to build a large assembly plant. That was the pickup truck project that ended up in San Antonio. While East Arkansas lost out on that deal, the Delta received a “parting gift,” according to workforce development pro, Dr. Glen Fenter. (Fenter is the superintendent at Marion, Ark. Schools.)

The parting gift was Hino, which makes stamping and component parts in Marion. In June, the Japanese-based parts manufacturer announced it will close the 1,300-employee facility in late 2027. HMM is a subsidiary of Japanese publicly traded company Hino Motors Ltd., of which Toyota owns a majority stake. HMM began production at its Marion facility in 2006 and expanded multiple times over the years.

GEORGIA

Hyundai begins hiring push in Savannah

Korean automaker Hyundai is well into hiring at its metaplant just west of Savannah. The plant is nearing completion and test vehicle assembly has started. Hyundai’s facility is reshaping the Savannah area’s labor landscape. The assembly plant and adjacent battery factory, located 25 miles west of downtown Savannah near Ellabell, will employ 8,500 at full build-out while suppliers will put 7,000 more residents to work.

On again, off again, Georgia Rivian EV plant lands $5 billion in funding from Volkswagen

Rivian Automotive landed a major investment that may get its Georgia plant back on track. The EV startup has joined with Volkswagen to fund its prospective plant east of Atlanta. Rivian could  help the German automotive company expand its plans for software-defined vehicles based on Rivian’s existing software platform, electrical architecture and technical capabilities.

Hyundai supplier to create 200 jobs in Georgia

Doowon Climate Control America will build a new plant near Metter in Candler County, Ga. The $30 million investment will create 200 new jobs.  Gov. Brian Kemp said that Georgia’s expanding EV industry is benefiting rural corners of the state. “In fiscal year 2023, alone, 82 percent of new jobs created and more than $20 billion of investments went to communities outside the metro Atlanta area,” Kemp said in a news release.

Imola Automotive USA establishing a plant in Fort Valley, Ga. 

The Italian electric car manufacturer will break ground in the third quarter of 2024, eventually employing 7,500 people, according to the company announcement.

KENTUCKY

Toyota boosts investment to $1.3 billion for Kentucky battery production

The automotive leader announced the investment in their flagship Toyota Motor Manufacturing, Kentucky (TMMK) facility in Georgetown, cementing their commitment to being a long-term employer and establishing the automotive plant as a central part of Toyota’s electrification strategy. The company plans on producing an all-new, three-row battery electric SUV. With a total investment of $10 billion, TMMK is Toyota’s largest production facility globally, having produced 12 million vehicles including the Camry, America’s best-selling sedan.

LOUISIANA

Life for Tyres Group Limited announces $46 million tire recycling facility in Louisiana

Europe’s largest end-of-stage tire recycling company, the Tyres Group, will establish its first U.S. processing facility at the Port of South Louisiana, creating 46 direct new jobs in St. John the Baptist Parish.

MISSISSIPPI

Electric truck tri-venture in Mississippi snags BlueOval City CEO

BlueOval City, a Ford-driven project north of Memphis, is nearing completion. Ford will manufacture its next-generation electric truck at BlueOval City, which is scheduled for completion this year. However, near deadline, the Michigan-based automaker announced it will delay the opening of the plant.

Kel Kearns, formerly the plant manager at the Tennessee Electric Vehicle Center at BlueOval City, will serve as CEO of Amplify Cell Technologies, the name for the tri-venture between Cummins, Daimler Truck and Paccar. The nearly $2 billion facility will produce differentiated lithium-iron-phosphate (LFP) battery cells in Marshall County, Miss. The North Mississippi plant is projected to house 2,000 workers.

Cummins, Daimler Truck and Paccar to build $1.9 billion battery facility in Marshall County, Miss.

The tri-venture will bring 2,000 jobs at the Chickasaw Trails Industrial Park in Byhalia, Miss. The operation will produce batteries for medium- and heavy-duty commercial electric trucks.

NORTH CAROLINA

Natron Energy announces $1.4 billion investment at Edgecombe County, N.C.

Natron Energy, the only commercial manufacturer of sodium-ion batteries in the U.S., has announced it will invest $1.4 billion to establish a sodium-ion battery giga-factory at the Kingsboro CSX Select Megasite in Edgecombe County, N.C., creating more than 1,000 jobs. The new facility will add to the company’s Michigan-based production capabilities. Natron will receive close to $30 million from the North Carolina Megasite Readiness Program for onsite preparation of the Kingsboro Megasite.

Fujihatsu & Toyotsu Battery Components, North Carolina LLC to invest $60 million near Toyota plant in Randolph County

The venture will produce prismatic aluminum cell cases and cell covers with discharge values. The Toyota supplier will create 133 jobs.

SOUTH CAROLINA

Small EV maker to create jobs in South Carolina

Columbia Vehicle Group (Columbia), an electric vehicle manufacturer, announced the selection of Aiken County for its first South Carolina operation. The company’s $12.2 million investment will create 180 new jobs.

Part of the Nordic Group of Companies, Columbia manufactures pure electric vehicles for industrial and commercial markets under the Columbia and Tomberlin brands. The company’s products, which include golf carts, utility vehicles, maintenance vehicles and e-bikes, are distributed globally. Columbia is relocating manufacturing operations from Florida and Wisconsin to Aiken County for closer proximity to customers and its supply chain. The company will purchase and up-fit an existing 154,480-square-foot facility located at 2063 University Parkway in Aiken.

Scout Motors to be revived in South Carolina

We are seeing just about every conceivable combination there is right now as automakers are making a bee-line to electrification. One such effort at taking a brand that was built by International Harvester decades ago is reviving the old Scout brand, which many consider the first SUV. Volkswagen and others have invested in Scout Motors and plan a $2 billion factory capable of making up to 200,000 of the iconic vehicles in South Carolina. Reports state that Scout Motors will build its factory in Blythewood about 20 miles north of Columbia, which will ultimately employ 4,000 people on 1,600 acres right in the middle of the developing “battery belt.” The plant itself will occupy 1,100 acres of that property.

AESC is spending over $3 billion in South Carolina

AESC, a world-leading battery technology company, announced the expansion of its lithium-ion electric vehicle battery manufacturing operations in Florence County, S.C. The company’s $1.5 billion investment will create 1,080 new jobs. This investment follows AESC’s initial announcement in December 2022, and expansion announcement in December 2023, resulting in a total investment of $3.12 billion and supporting 2,700 new jobs across the local community.

In 2022, the company announced a multi-year partnership with BMW to supply technology-leading battery cells to be used in the next-generation electric vehicle models produced at Plant Spartanburg. AESC’s latest expansion will extend the partnership to additionally provide electric vehicle battery components for BMW Group’s Mexico Assembly Operations.

Tesla to establish first South Carolina facility in Greenville County

The electric car company plans to lease 251,100 square feet to create a regional parts distribution facility.

TENNESSEE

BlueOval City coming to life in West Tennessee; delays production until 2027

Ford Motor Co. made a major announcement in the spring regarding its BlueOval City plant north of Memphis. Mass hiring for BlueOval City is scheduled to start next year. Robotic training cells, conveyors, paint spray booths, and stamping press lines have been installed at what is called the Tennessee Electric Vehicle Center (TEVC) in rural Stanton, Tenn.

UAW successfully organizes union at VW plant in Chattanooga

In April, workers at a Volkswagen plant in Tennessee voted to join the union, the first large nonunion auto plant in the South to do so. Weeks later, the union negotiated a new contract bringing significant pay and benefit improvements for its members at several North Carolina factories owned by Daimler Truck. And in the summer, Mercedes-Benz employees at its plant in Tuscaloosa, Ala., voted down UAW organization.

Construction progress at Ford’s BlueOval City near Memphis

Work on West Tennessee’s BlueOval City is entering a new phase. Last year, Ford hit peak construction employment in Q3 2023, matching the timing given years ago when Ford first came to town. In fact, when plant manager Kel Kearns first gave that timeline, BlueOval City was still an empty field. Months later, it was an active construction site about 50 percent done — with plenty of mud still around — when Ford CEO Jim Farley visited in March 2023. The company has spent billions on construction and supplies and is now entering the installation phase. At the beginning of the summer quarter, machinery was being installed in BlueOval City’s paint shop, vehicle assembly, and stamping areas. Work now moves inside the massive facilities on campus, with literal tons of equipment installed in a way that has been planned for months to ensure top-level efficiency. New workers will then start producing trucks to be delivered to customers in 2027, not 2026 as first reported.

Ford doubling down on EVs, hybrids at BlueOval City’s T3 gets release window

Ford Motor Co. announced that it is embracing electric vehicles (EV) and hybrid vehicles for its Ford Blue division. By the end of the decade, it plans to offer hybrid powertrains on every model.

LG Chem signs $19 billion deal with GM

With construction of LG Chem’s $3.2 billion factory in Clarksville, the largest foreign investment in Tennessee history, the South Korean battery maker has agreed to provide GM with battery materials able to power 5 million all-electric vehicles with a 300-mile range.

TEXAS

 Texas county approves Toyota incentives for $531 million San Antonio expansion

Local officials are hopeful nearly $32 million in public incentives will sway Toyota to invest more than $531 million in a major expansion of its San Antonio manufacturing campus. In the summer, Bexar County Commissioners authorized negotiations with Toyota on an incentives package valued at $14.9 million. Commissioners have now approved a contract between the county and Toyota tied to those incentives.

Tesla to occupy 1 million square feet in Kyle, Texas

EV automaker and Austin-headquartered Tesla is moving forward with a warehouse and light assembly facility in Kyle. No word on jobs.

Elon Musk wants to move Tesla, SpaceX incorporation to Texas

The Tesla, SpaceX and X chief executive said the company will hold a shareholder vote to decide whether to incorporate in the Lone Star State.

Norwegian EV parts supplier set to spend millions, hire hundreds in Mesquite, Texas

Hexagon Purus ASA, which makes batteries and systems for electric vehicles, is moving into existing facilities in Mesquite. The project will create 250 jobs.

Vehicle parts manufacturer for Tesla to open plant in Austin metro 

US Farathane, parts supplier to Tesla’s Austin factory, announced in the winter it will open a plant in North Austin. The project will create 100 jobs.

Global automotive parts supplier to invest $100 million north of Austin

Hanwha Advanced Materials LLC, a massive global automotive parts supplier, is investing $100 million and hiring hundreds as it sets up shop in Williamson County, north of Austin. The company will build its new plant in Georgetown.