Kia May Build Bigger US Plant

[Hankster]

We need something like this in northeast Tennessee. Just not enough good paying jobs here. I have heard a lot of locals claim that they (the local city leaders of the metro area) want this part of the state to become a retirement area, but who knows? There are some factories here that pay good, but some are shutting down.

I agree that Northeast Tennessee needs plenty of manufacturing investment. It's all part of a healthy economy. Being a retirement area is nice, and I certainly think the beautiful mountains of upper East Tennessee provide a wonderful retirement location for many. But the area needs much more than that, and some good manufacturing investments would be a much needed addition. The Knoxville area has been quite successful in attract new manufacturing investment, so I so raeson why upper East Tennessee can't do the same.

[Hankster]

Today

[Hankster]

I read that a spokeman for Kia has annouced that the decision for the location of their new manufacturing plant in the US will be made no later than the end of this month. Hopefully, the wait is almost over.

[ATLBrain]

I'm neutral in this b/c it could help either GA or TN (provided it doesn't go elsewhere). I understand MS is putting up quite the fight with (what else) federal funds. Don't like the sound of that. Although, I'm sure all the states bidding for this are offering some amount of federal pork. I know I don't like the trend (giveyerowndamngovernmenthandouts).

But anyway, if TN (or GA) doesn't get this one, it could get the Audi/VW plant. Whatever comes of this, I hope the "loser" learns enough to help land the next big fish.

[Hankster]

I'm neutral in this b/c it could help either GA or TN (provided it doesn't go elsewhere). I understand MS is putting up quite the fight with (what else) federal funds. Don't like the sound of that. Although, I'm sure all the states bidding for this are offering some amount of federal pork. I know I don't like the trend (giveyerowndamngovernmenthandouts).

But anyway, if TN (or GA) doesn't get this one, it could get the Audi/VW plant. Whatever comes of this, I hope the "loser" learns enough to help land the next big fish.

I read that Mississippi has offered another $240 Million thats comes from a Katrina relief fund on top of there original offer. It a one time opportunity which may never come up again. That comes to close to $1 Billion in incentives. Can you believe that? It's getting absolutely crazy.

One thing hurting Mississippi is the poor performance of Nissan's plant there. They have suffered from poor quality, and a poorly trained labor force. No amount of incentives should overcome that, if Kia is worried the same thing could repeat again should they choose the Mississippi site. Based on what I'm reading, I'm predicting that the Georgia site will win. I'm thinking Chattanooga ultimately will be a victim of geography, by not being quite close enough to the Hyundai and Kia supplier plants.

[Hankster]

I'm sure that many have heard by now that it was announced that the Kia plant will locate in West Point, Georgia. The biggest factor in their decision was location as the site was quite close to the many Hyundai (Kia is owned by Hyundai, and could be considered a divion of that company like Chevrolet is a division of GM) suppliers. Georgia offered about an incentive package worth more than $400 Million. Still that was way less than Mississippi offered. I really think the Nissan fiasco in Mississippi (bad quality and poorly trained workforce there) hurt them considerably, and may mean that Mississippi is never seriously considered again for an auto plant. As far as Chattanooga and Enterprise South is concerned, local politians are saying that Tennessee needs to have a better incentive package on the table when the next company comes looking. Still, geography may be the only reason why Chattanooga was not chosen. Estimates are that 4 to 5 more car plants will locate in the South by 2010. Officials here are extremely confident that Chattanooga will land one of those plants.