Another auto plant? (Mobile, Huntsville, Tuscaloosa: estate, jobs, property)

[Huntsville_secede]

I'm hoping this comes to North Alabama we have yet to get an auto assembly plant but either way if it does come to the state it will be more good news for Alabama.

Alabama on short list for U.S. assembly site for
Thursday, April 24, 2008
DAWN KENT
News staff writer

Alabama is again in the hunt for an assembly plant, this time vying against Michigan and Tennessee as a site for a potential U.S. factory for Volkswagen.

The German automaker, which is expected to decide this summer whether it will build the plant and, if so, where, said Wednesday it had narrowed its evaluation to the three states.

Sites in north Alabama along Interstate 65, as well as land in the Dothan area, property north of Mobile and a parcel spanning the Alabama-Mississippi line north of Meridian, Miss., all have previously been identified by state officials as areas that could handle an automotive assembly plant.

Alabama on short list for U.S. assembly site for Volkswagen- al.com

[kevin_1975]

Thats great news for the state.

[Southlander]

North Alabama was the FIRST site for an auto-related plant in Alabama. Saginaw Steering Systems - now called Delphi - was built just north of Decatur in the 1970s. Dodge had a plant in Huntsville for, I think, radios? or some part(s) that went into their vehicles. Delphi has another year before it shuts down (I've heard). Of course, Huntsville still has a Honda engine plant.

People forget that this area brought the auto manufacturers to Alabama in the first place. Maybe not assembly plants for entire vehicles, but certainly parts that go into them. And that's one of the things that attracted the full-vehicle assembly plants to this state.

[Frankie117]

I think the Dothan area needs this more than the others. Although, usually when a European auto-maker moves to the US, it promises 50-60% of the initial jobs to those in the country of origin (Germany in this case), so it probably wouldn't counter too much of the decayed industrial parks of Dothan. Jacksonville, Fl. is usually where finished automobiles go to be exported or distributed (thats where Hyundai sends their vehicles).

Don't get too excited though, Georgia and South Carolina have also set aside several areas that Volkswagen is checking out first.

Southlander: The South as a whole has always been a popular place for auto-parts manufacturing, especially in the past 30 years or so. It is a major contributing factor to the assembly plants as you mentioned, due to rising logistical costs.

[Huntsville_secede]

Originally Posted by Southlander

North Alabama was the FIRST site for an auto-related plant in Alabama. Saginaw Steering Systems - now called Delphi - was built just north of Decatur in the 1970s. Dodge had a plant in Huntsville for, I think, radios? or some part(s) that went into their vehicles. Delphi has another year before it shuts down (I've heard). Of course, Huntsville still has a Honda engine plant.

People forget that this area brought the auto manufacturers to Alabama in the first place. Maybe not assembly plants for entire vehicles, but certainly parts that go into them. And that's one of the things that attracted the full-vehicle assembly plants to this state.

Thats good information, I'm aware of the Delphi plant though my dad used to work there, I was specifically talking about the latest round of full foreign auto assembly plants that started with Mercedes in Tuscaloosa. And Frankie according to the article as of yesterday Volkswagen's decision is down to three states, Michigan, Tennessee and Alabama. Considering no foreign auto plants have been built in Michigan I would say its TN vs AL.

[cpg35223]

That would be a good win for Huntsville and the State. From what I know, look for one of the Big 3 to start putting out feelers in the area soon.

[Frankie117]

Originally Posted by Huntsville_secede

And Frankie according to the article as of yesterday Volkswagen's decision is down to three states, Michigan, Tennessee and Alabama.

Direct Quote from the article

Earlier this year, a flurry of newspaper and trade journal reports said the automaker was closing in on the Carolinas and Georgia for the assembly site.

I don't think they've quite ruled out the Carolinas and Georgia, especially since those two have the most parts facilities already in place. Alabama is quickly catching up, especially since Hyundai came, KIA has also spurred more parts plants in the Opelika-Auburn areas, and it isn't even build yet! this article could just be hype like the the SC and Ga. ones though.

Also, I expect more European and Asian car companies coming in the near future. Of course, I don't think Huntsville needs this one, there are other parts of the state in dire need of those jobs.

[Reactionary]

'TVA Megasite' perfect for VW:

...a 2,010-acre industrial site in the county (Limestone) is now a certified mega site, a large industrial property suitable for major automotive manufacturing... This industrial site is the first property certified as a mega site in Alabama and is located on Interstate 65 at mile marker 346 near Athens in North Alabama.

The Last Page - Serendipity - Trade & Industry Development

Limestone County I-65 Site

Tennessee Valley Authority Industrial Sites and Buildings --

[Huntsville_secede]

Originally Posted by Frankie117

Direct Quote from the article

I don't think they've quite ruled out the Carolinas and Georgia, especially since those two have the most parts facilities already in place. Alabama is quickly catching up, especially since Hyundai came, KIA has also spurred more parts plants in the Opelika-Auburn areas, and it isn't even build yet! this article could just be hype like the the SC and Ga. ones though.

Also, I expect more European and Asian car companies coming in the near future. Of course, I don't think Huntsville needs this one, there are other parts of the state in dire need of those jobs.

Yeah but the difference here is Volkswagen never said they had locked in on Georgia and the Carolina's, that was just speculation. However Volkswagen did officially say it narrowed its search down to three states so the article just isn't hype.

"We reviewed many excellent sites and the process to narrow down the locations was not an easy one. We look forward to continuing to work with the states of Alabama, Michigan and Tennessee as the evaluation moves forward," said Stefan Jacoby, Volkswagen Group of America's president and chief executive.

[Frankie117]

Well, odds are Michigan won't get it, the company officials even said that it was 'too much extra baggage', they probably were referring to unionization.

Upon further research, let me list some of the things auto plants like. Access to a port is the first major concern - that puts Mobile a ways up there on the list, however, usually the preferred port is a deep-water Atlantic Port (mainly Jacksonville for autos). Car companies like access to rail service more so than Interstates, that puts most of the locations in a good position. Dothan seems to have a slight advantage because it has something called 'shortline' rail service that generally charges half what the major companies do to ship. Companies like unemployment, not saturation - else it is too hard to find workers. I believe that is an invalid reason because people will come from 100 miles of an auto plant just to work there. KIA for example received something like 50,000 job applications to fill only 2,500 spots.

Due to land costs and taxes, Dothan once again takes the top spot. The land is very flat and would require little to no grading. Houston County taxes are extremely low too, which is another thing auto makers like.

I'm not sure what land the state designated for the plant in the Dothan area, but I'm guessing it is somewhere on the South side of town, if not there then immediately North of the city proper where Michelin has already located. Dothan has 4 different rail companies to choose from regardless of where the plant locates, yet another plus for it. Plus from a logistical perspective, it is closest to the port of Jacksonville, or if necessary, Panama City, Fl. is a port that could easily be expanded to handle auto export.