Automotive News - March 10, 2008 - (Page 28)

28 • MARCH 10, 2008 How Tupelo talked Toyota into building a plant there April Wortham awortham@crain.com BIRMINGHAM, Ala. — As head of site selection for Toyota and several of its affiliates for most of the last decade, Dennis Cuneo sat through a lot of PowerPoint presentations. But one that leaders from three rural counties in northeastern Mississippi showed him two years ago made the biggest impression. In fact, a single slide eventually persuaded Toyota to name Tupelo the site of its newest North American factory. The slide showed that 32.4 percent of the available work force living within 60 miles of the Tupelo site had manufacturing experience. Most had worked in the furniture industry before it moved overseas. Looked at labor But the Mississippians took it a step further, recalled Cuneo, the retired senior vice president of Toyota Motor North America. They compared their manufacturing experience to that in labor pools surrounding every other major automotive factory in the Southeast — and to Toyota’s own U.S. manufacturing plants. The only one that came close was Toyota’s engine factory in Huntsville, Ala. Of the available workers there, Toyota adviser Dennis Cuneo: “I went back to Toyota and I said, ‘We’ve got to take a hard look at Tupelo.’ ” 26.1 percent have previous manufacturing experience. San Antonio, where Toyota opened a Tundra truck factory in 2006, came in last, at 7.6 percent. “They said, ‘Look, San Antonio has four times the population, but guess what? We have more manufacturing workers in a 60-mile radius than San Antonio,’ ” Cuneo said. “I went back to Toyota, and I said, ‘We’ve got to take a hard look at Tupelo. I think there’s really something there.’ ” Toyota looked and liked what it saw. In February 2007, Toyota said it would build a $1.3 billion factory near Tupelo. The factory will produce about 150,000 Highlander crossovers a year when it opens in 2010. On Feb. 29, Cuneo, 58, who now is a senior adviser to Toyota and several of its affiliates, told a meeting of the Alabama Automotive Manufacturers Association in Birmingham, Ala., that it’s not known how many suppliers Toyota will need in Tupelo. Suppliers line up The same day, Toyoda Gosei Co. said it would build a $19 million factory in Mississippi to make interior and exterior parts. The Toyota affiliate was the latest of at least four suppliers to reveal plans for local factories. The size of Toyota’s supplier base in Mississippi, said Cuneo, “depends on whether Tupelo remains just a Highlander plant or if we expand it.” c Allied will supply sensing systems to Magna DETROIT — Allied Transportation Technology Inc. will supply Magna Electronics Inc., a unit of Magna International Inc., with sensing systems used in driver assistance products. Magna Electronics makes electronic products such as reverse park assist cameras, lane departure warning systems, in-dash computers and headlamp controls. Allied, of suburban Detroit, produces systems used in parking assistance and back-up object detection technologies. Haldex opens Mexico plant IRAPUATO, Mexico — Haldex Traction Systems has opened a plant here. The plant, in Guanajuato State, will make limited slip couplings, differentials and all-wheel-drive platforms for use by General Motors. The Saab 9-3 XWD will be the first vehicle to use the systems produced at the plant. Separately, Haldex acquired Concentric, a supplier of oil, water and fuel pumps. Concentric joins Haldex’s hydraulic systems division, adding experience in the diesel engine market. Haldex, of Stockholm, produces all-wheel-drive systems for light vehicles and fuel pumps for diesel engines. Behr gets Nano pact PUNE, India — Behr India Ltd. will supply Tata Motors with air conditioning systems for the Tata Nano starting in June. Behr India will supply Tata with heating, ventilation and air conditioning modules, manual control heads and condensers. Behr will open a plant in Singur, India, to manufacture the HVAC modules. Production is scheduled to begin this summer. Behr India is a Pune, India, joint venture between Behr GmbH & Co. KG and the Anand Group, a supplier of automotive components. It makes air conditioning systems and enginecooling products. http://www.protective.com http://www.protective.com/dealerservices http://www.protective.com/dealerservices http://www.protective.com

Table of Contents Feed for the Digital Edition of Automotive News - March 10, 2008

Cheaper small cars are part of VW's U.S. plan Ford offers to buy back 81 stores As dollar dives, automakers juggle global strategies Jaguar-Land Rover deal will be signed within weeks GM Planworks chief leaves Jacoby cites dealer role in VW makeover Slim fast Nissan: Electric car to get here in 2010 Family honor Suddenly, Arkona's a key software player Chrysler may build vehicles in Russia Congress may ban mandated arbitration Volvo signs dealers willing to exit Breeding a hybrid? Prius could be a brand Honda adds benefits for same-sex partners Top China execs to speak at conference Manual for Challenger waits until '09 Ex-Sonic president: Gulf States raided Sonic GM, American Axle: Ties that bind Boardroom coup ousts Chamco executives False data imperil all auto financing Dealers would suffer if Calif. gets its way GM, Ford should bring Euro cars here Fresh ideas are fine, but Chrysler must be wary We need that 10% of useful inventions Safety options: Let consumers decide Tire monitors are full of problems Germany's labor setup just doesn't work Alabama adding auto jobs more slowly Engineer Banks strives to sip fuel, burn rubber Toyota Financial takes risks to aid dealers Honda captive beefs up dealer training in leasing NADA releases 2 subprime guides ADP develops e-sales brochure Credit unions' share of auto loans declines Upgraded auction ID carries a fee Dealers At hard-charging Hyundai, the plan is simple: More — now Genesis sedan's assignment: Boost image of all Hyundais Allied will supply sensing systems to Magna Haldex opens Mexico plant Behr gets Nano pact How Tupelo talked Toyota into building a plant there Infiniti FX showcases new Nissan technology Ford may consider hatchback for U.S. Audi to launch A4 sedan, wagon together BMW M3 convertible Saab hybrid concept has solar roof panels Toyota could bring tiny 4-seater to U.S. Hummer to push H3 pickup's usefulness New look for the SL Tiny Nano makes big waves GM's Opel unveils small hatchback that could become part of Saturn line Who says Americans don't want hatchbacks? 9-3 will dominate Saab marketing Lutz: Green takes greenbacks Leap year added to Feb. misery 9 U.S. Toyota executives will retire Ford gives employees $1,000 bonus Denso picks new N.A. CEO GM extends buyout offers CAW OKs TRW pact Lampert ups AutoNation stake Sagging Chrysler boosts spiffs Feb. output is up slightly Buick offers the Cadillac of caddies GM's board: The royal robe fits Fritz Be it metal or men, Geneva all about style Raising the roof (price) Italian cops bust Fiero-aris Consumer Reports' verdict on Chrysler products: Eeeee-uuw!

Automotive News - March 10, 2008

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