Automotive News - June 2, 2008 - (Page 30D)

From cows to kimchi: Making Alabama sweet home for Koreans April Wortham awortham@crain.com One of Ellen McNair’s first tasks after Hyundai Motor Co. decided to build an assembly plant in Montgomery, Ala., was to get the cows off the site. McNair, senior vice president of corporate development for the Montgomery Area Chamber of Commerce, remembers it was the day after the 2002 press conference heralding the new plant. She and a team from Hyundai’s Seoul headquarters were driving around the 1,700-acre tract of farmland, looking for a spot to stake tents for the groundbreaking ceremony. “When we drove up into this one field, all the cows came over. I think they thought we were going to feed them,” McNair recalls. “One of the Korean gentlemen said, ‘Look. Even the cows in Alabama come to welcome me.’” If Alabama’s livestock seemed hap- py to have Hyundai, its people were overjoyed. The $1.1 billion project would create 2,000 jobs. Hyundai’s suppliers would add another 6,000. A local economist put the annual economic impact at $280 million. Plant expansion Now, three years after the first Sonata sedan rolled off the line in Montgomery and with a $270 million engine plant expansion under way, Hyundai continues to make its mark on the area — and not just in dollar signs. Korean restaurants are popping up next to barbecue joints. High school football coaches are recruiting soccer-savvy Korean students as kickers. The local Catholic church conducts mass in Korean the third Sunday of every month. The South is getting Seoul. “As you drive around, you’ll see a lot of churches with signs in Korean outside. Grocery stores like WinnDixie have big signs that say Korean food is sold there. And there are Hyundais all over this town,” McNair says. “You can just look around the community and see the impact.” The merging of cultures, while ongoing, didn’t happen by itself. As part of Alabama’s $258 million incentive package for Hyundai, the city of Montgomery agreed to provide for three years a full-time person to work with the Korean families and help see KOREANS, Page 30F CAPACITY Southeast attracts foreign suppliers continued from Page 30B found in Michigan and parts of the Midwest. In some places such as pockets of Alabama, it has become strained by a decade of blockbuster growth. Sub-supplier strains Suppliers also need other suppliers. And for some foreign-based suppli- “We see a lot of opportunities,” says Peter Holdmann, ZF Lemforder’s executive vice president for chassis systems. “VW is the second-biggest ZF customer beyond BMW worldwide, so in all other areas of the world we have huge business with VW.” Currency pressures also are a factor. The U.S. dollar’s weaker value against other major world currencies, particularly the euro, over the past several years makes it cheaper for foreign companies to build and buy goods here. “We have all seen what has happened to the dollar,” says Lars Holmqvist, CEO of CLEPA, the European supplier association. “It has been a surprise to all of us, and the length of the downturn has made a lot of people think. The people who have stable business in the U.S. will think about production in the U.S.” ers, those can be hard to find in North America, much less in a so-called “Southern automotive corridor” still in its infancy. Consider Robert Bosch GmbH. The German supplier has been ramping up production of commonrail systems at its Charleston, S.C., plant in the last few years. Gasoline direct injection will be one of the next areas where the supplier will need to expand production, Bernd Bohr, chairman of the Robert Bosch GmbH automotive group, says. But it needs subcomponents. “A lot of the products we produce in the U.S. and Asia had their origin somewhere in Europe,” Bohr told Automotive News Europe last month. “European designers like to use European suppliers. Sometimes they think only one supplier can supply them. This makes it more difficult to go international.” c Adding U.S. capacity Investment Country of Foreign-based automotive suppliers have been adding manufacturing capacity in the Southeast. This list shows the top 28 suppliers, based on dollar investment, that either expanded existing factories or added to their North American manufacturing footprint in the region since 2006. Investment (in millions) Company Place Product Country of origin 1. Denso Manufacturing Tennessee Inc. 2. Toyota Boshoku America 3. Aisin Automotive Casting Tennessee Inc. 4. Mobis Georgia LLC 5. Mobis Alabama LLC 6. Nippon Piston Ring Co. 7. Eagle Bend Manufacturing 8. Sekisui S-LEC American LLC 9. Yorozu Automotive Tennessee 10. International Crankshaft Inc. 11. Bosch Braking Systems 12. Daehan Solution Co. 13. Aisin Automotive Casting LLC 14. Topre America Corp. 15. Vuteq USA Inc. 16. ZF Steering Systems LLC 17. Dongwon Autopart Technology 18. Nissin Brake Georgia 19. OTICS USA Inc. 20. Exedy America Corp. 21. Yachiyo Manufacturing of AL LLC 22. Sejong Georgia LLC 23. Kyosan Denso Manufacturing Kentucky LLC 24. Koyo Corp. of USA 25. Bruss North America Inc. 26. HS Automotive Alabama LLC 27. Schrader Electronics 28. Nifco Inc. $185.0 80.0 67.0 60.0 55.6 48.7 N.A.* 43.2 41.0 38.2 35.0 35.0 34.0 34.0 32.5 31.1 30.0 30.0 30.0 N.A.* 28.0 27.8 27.1 N.A.* 24.0 23.0 N.A.* 21.2 Maryville, TN Fulton, MS Clinton, TN West Point, GA Montgomery, AL Bardstown, KY Clinton, TN Winchester, KY Morrison, TN Georgetown, KY Clarksville, TN Harris County, GA London, KY Cullman, AL New Albany, MS Hebron, KY Meriwether County, GA Rock Springs, GA Morristown, TN Mascot, TN Steele, AL LaGrange, GA Mount Sterling, GA Jonesborough, TN Russell Springs, KY Enterprise, AL Springfield, TN Shelbyville, KY Avoid Michigan But why the Southeast? Whether they’re following their customers, following other suppliers or stepping out on their own, Holmqvist says the reason is the same: It isn’t Michigan. “Nobody in their right mind goes to Michigan because of the problems everybody can see there with the union,” he says. “Nothing is as stable as it used to be. We can expect to see some pretty big fluctuations in demand, and that means you have to be very flexible. Flexibility has not been the strong point of the unions.” Most Southern states are right-towork states where the union has had little success. But the region does have its challenges. The labor force, though often acclaimed for its work ethic, lacks the automotive experience starters, alternators, instrument clusters and electronics seats, floor coverings engine oil and water pumps, engine pistons Front-end modules, front-rolling chassis modules, rear-chassis modules, cockpit modules, front and rear bumpers and other parts chassis and plastic injection molding piston rings stampings interlayer film for laminated glass stampings crankshaft and steel forgings hubs and rotors Interior sound insulation components aluminum die cast components metal stampings molded, extruded and lathe-cut mechanical rubber goods steering gears, steering column assemblies metal stampings brake assemblies engine parts torque converters welded and subassembled parts muffler and exhaust systems fuel systems and fuel pump module assemblies bearings engine and transmission sealing systems weatherstripping, tubing and rubber hoses tire pressure sensors plastic injection molded fasteners Japan Japan Japan South Korea South Korea Japan Canada Japan Japan Japan Germany South Korea Japan Japan Japan Germany South Korea Japan Japan Japan Japan South Korea Japan Japan Germany South Korea Ireland Japan *N/A: Actual amounts are not available, but the Tennessee Department of Economic and Community Development confirmed these companies’ ranking on the list. Source: Tennessee Department of Economic and Community Development, Georgia Department of Economic Development, Mississippi Development Authority, Alabama Development Office, Kentucky Economic Development Cabinet, South Carolina Department of Commerce, Denso International America Inc., Toyota Boshoku America Automotive News JUNE 2, 2008 http://WWW.ANX.COM http://WWW.ANX.COM

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Automotive News - June 2, 2008 Gas prices fuel industry's new era Chrysler faces tricky dealer mergers Honda may crank out more Civics in N.A. Mercedes will move into Chrysler Pacifica studio Ford to offer hatchback version of Fiesta Prestige Automotive sells stores but keeps Black Enterprise top spot Dealership marketers take to text messaging Senate to hear personal pleas on roof crush rule Magazine: Chrysler, Fiat are talking Former Fla. dealer gets jail for bilking bank That guy Alfred had possibilities Ford will make next Mustang look smaller Pontiac subcompact may come to U.S. GM: Battery glitch cuts hybrid sales Porsche exec: CAFE 'will not change our nature' Japanese rivals race for lithium batteries Jatco boosts CVT capacity in Mexico for N.A. vehicles Mercury deserves a better chance Rising gas prices have changed the U.S. market Marketing and sales: Context and content Mexico's Nemak grows beyond North America Buyers didn't quit GM; GM quit on its buyers Brand perceptions change slowly Bloggers are journalists, too Nice HQ, Nissan, but where's Nobe? Chrysler's Chernoby: Growing up gearhead Picture this Mitsubishi hopes new gearbox widens Evo's appeal Openlane gets funds Obituaries Survey: Going green can get your auto ad noticed Inrix: Router can reduce traffic delays Mazda6 gets own platform for U.S. ... sort of Mazda6 set to take on mid-sized sedan heavyweights Troubled or not, the United States still beckons What's next? More transplant models headed this way Exports help as Mitsubishi sorts things out Irma Elder: 'This is one of the toughest times we have had' Fitzgerald: Dealers, consumers need alliance Can Bertone design a comeback? Family-owned business struggles for survival Some design houses fall on tough times Hughes: Not a subscriber? No problem American Axle lines up new non-U.S. business GM think tank works to boost service business Toyota offers gas card as tire incentive VW turns to common software to develop products Continental's Calif. office targets Asian carmakers ZF sees chassis, axle opportunities in N.A. Flex: A new Ford image ... or just over the top? Ford targeted Flex interior quiet, ride Ex-dealership managers say firings were over religion Dealers Genesis in Toledo: It's a long story Back woes sideline Nardelli GM: 19,000 take buyouts Panama to head Nissan Mexicana Wilhite jumps to Jumpstart Dauch sons move up, out Kozyra leaves Continental Ford to lay off salaried staff More small cars to arrive in 2009-10 Even on used market, big trucks go begging Auto advertisers adopt mpg mantra Industry to motorists: We're here to help Diesel prices hit suppliers' Mexico sites Can Camry catch F series? Leno's words of wisdom for automakers Nissan's carbon credits ease global warming guilt Automotive CEOs' pay pales next to peers' Year of the Small Car can't come too soon Foreign suppliers adding capacity in Southeast From cows to kimchi: Making Alabama sweet home for Koreans After light-truck push, cars are king again Mexican suppliers expect sales record in '08

Automotive News - June 2, 2008

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