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Toyota Plants In USA
Date: Mar 18, 2005
Contributor: Kenya Hoosier
Toyota might add two new North American assembly plants by the end of the decade, and some think the Japanese company could build one in Northeast Mississippi.
Just days after the world's most profitable automaker confirmed studying the possibility of expanding on this continent, economists in Mississippi and Michigan pegged a worthy destination the Wellspring Megasite in Pontotoc, Union and Lee counties.
Certified in January by the Tennessee Valley Authority, the site was billed as a large industrial property suitable for major automotive manufacturing, and its coordinator says he thinks it stands a good chance of consideration.
"Do I think we could compete? Yes," said Randy Kelley, executive director of Three Rivers Planning and Development District. "We think we have a great site with tremendous transportation opportunities, and we think we're sitting in a hole where if you look on the map it's like the hole in the donut. We're the missing link."
Northest Mississippi is surrounded by auto assembly plants that have located in the South but currently hosts no plants of its own.
Wellspring spokesman David Rumbarger, president and CEO of the Community Development Foundation, would not comment on whether Toyota had contacted him for a site visit.
And Toyota spokesman Dan Sieger also declined comment on a site visit, saying the company is still studying whether to build another plant, expand current facilities "or none of the above."
Moving south
Wellspring sits in the middle of what Southern Business and Development magazine terms the "Southern Auto Corridor," and next week it will list the tri-county location among the top 10 megasites in the South, said publisher and owner Mike Randle.
Industry experts predict Toyota will locate in the South, and Northeast Mississippi is a likely location: The region borders one of two Southern auto hubs - the first extends in a 250-mile radius from Chattanooga, Tenn.; the second extends 250 miles out from San Antonio.
"You're right on the edge of the Chattanooga hub," said Michael Robinet, vice president of global vehicle services for CSM Worldwide, an auto forecasting company.
And, increasingly, foreign automakers are clustering in the South because of lower wages, better incentive packages and closer proximity to trained labor and primary markets, according to a 2003 study by the Center for Automotive Research.
Of the 3 million units foreign auto companies added to their U.S. production capacity between the late 1980s and 2001, more than half were made in the South, the study stated.
By 2006, those companies will add another 1.3 million units, and all but 200,000 will be built in the South, the study said.
"Automotive investment tends to cluster as they go forward mainly because the supply bases for some of these auto plants are common between different vehicle manufacturers," Robinet said.
The trend toward Southern production is also a major factor in steel mill SteelCorr's pending decision to locate in Columbus, where getting steel to nearby auto manufacturers will be less costly.
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