Autoblog

Tennessee ranks top in automotive manufacturing strength

Jeff Glucker — Mon, 22 Aug 2011 08:27:00 EST

Filed under: Plants/Manufacturing, Nissan, Volkswagen

Ask anyone in the country to name the state that they believe is the best place to build automobiles. We'd wager that Michigan would be the first state uttered by most - it's the home to Ford, Chrysler and General Motors, after all). The correct answer, however, according to Business Facilities, is Tennessee, which has been crowned the champ with regards to automotive manufacturing strength. Make that defending champ, since this is the second year in a row that Business Facilities has recognized Tennessee as the top spot to build cars.

Why Tennesse? Just ask Volkswagen and Nissan about their state-of-the-art facilities, happy workers and the burgeoning crop of supply companies flocking to the state. Another major plus for the automakers is that Tennessee is a right-to-work state, which allows them avoid tangoing with unions. Both automakers employ non-unionized teams, and their employment numbers are growing.

So where does Michigan rank on the Business Facilities list of the top ten states for automotive manufacturing strength? Sixth, behind South Carolina, Georgia, Kentucky and Alabama. The rest of the the top spots are held by Ohio, Mississippi, Texas and Indiana.

Tennessee ranks top in automotive manufacturing strength originally appeared on Autoblog on Mon, 22 Aug 2011 08:27:00 EST. Please see our terms for use of feeds.

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TN Senator Corker argues UAW would be "highly detrimental" to stateside VW plant

Chris Shunk — Wed, 01 Dec 2010 14:31:00 EST

Filed under: Government/Legal, Volkswagen, UAW/Unions

Unions and southern auto plants go together like ice cream socials and diabetes, but the mere thought of an organized Volkswagen plant in Chattanooga must give Tennessee Senator Bob Corker bad dreams. The Chattanooga Times Free Press reports that Corker was asked by VW to give input as to whether or not the facility should take a pro-United Auto Workers stance. The senator reportedly told representatives at the German autoworker that the presence of organized labor would be "highly detrimental."

So why the negative stance on unions? Corker claims that his dealings with the UAW during the bailout of Chrysler and General Motors is the reason he's so sour on the idea in his home state. The senator claims that the UAW put the success of the automakers "way, way, way way" behind the needs of union, adding "I just can't imagine any company of their own accord of being desirous of entering into a relationship with UAW."

Volkswagen currently has a reported "neutral position" concerning unionization in Chattanooga, but according to a study by the Grand Rapids Press in Michigan and other Booth newspapers, the UAW could lead to higher labor costs for the German automaker. The paper says that overall labor costs, which include pension funding and health care, adds up to about $74,000 per year per employee. Non-union automakers reportedly average a much lower $53,000 per year.

But while Corker's feelings about the UAW may or may not give VW pause, neither the senator or the automaker will have the final say in the matter. VW Communication Manager Guenther Scherelis says "the employees will decide for themselves about their representation."

[Source: Chattanooga Times Free Press | Image: Chip Somodevilla/Getty]

TN Senator Corker argues UAW would be "highly detrimental" to stateside VW plant originally appeared on Autoblog on Wed, 01 Dec 2010 14:31:00 EST. Please see our terms for use of feeds.

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The South may rise again thanks to VW

Jonathon Ramsey — Mon, 14 Jan 2008 19:02:00 EST

Filed under: Plants/Manufacturing, Volkswagen

It's been a rather short trip from VW asking whether it would build a factory in the U.S. to saying "Ja" and closing in on two locations. The decision on where the factory will be hasn't been made yet, but spots in North Carolina, South Carolina and Georgia are the leading candidates.

Plans apparently call for a large plant, and VW wants it churning out cars by 2011. So the company needs at least 1,000 acres, and it needs to get to work on it immediately. If VW went with the site in Rocky Mount, NC, it would be placed about midway between VW's future corporate headquarters in Virginia and the cluster of suppliers around BMW's Spartanburg, SC plant. But VW is also scouting land in Anderson, SC.

Yet, even though VW hasn't announced the location, the Rocky Mount land appears to be in play. A deal for a large parcel is scheduled to close later this month. Said the farmer who owns most of it, although he hasn't met the buyers, "All I know is I'm selling it to a bunch of Germans." The plant, wherever it ends up, will build cars for North America and Europe.

[Source: Auto News, sub req'd]

The South may rise again thanks to VW originally appeared on Autoblog on Mon, 14 Jan 2008 19:02:00 EST. Please see our terms for use of feeds.

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