Here We Go Again!

[Hankster]

Here we go again! Toyota will be building a new auto assembly plant. At the moment there are four sites being mentioned as the front runners. They are Chattanooga (Enterprise South), Roanoke, VA, Greensboro, NC and Northeast Arkansas. It is widely stated that the best site is offered at Enterprise South. There obviously will be tons of negiations, incentives and politics played in the process. It may or may not be this one, but one day I feel confident that Chattanooga will land an auto plant. They have one of the finest sites that there could possibly be with over 2,000 contiguous acres, near a metro area with plenty of labor resources, and excellent rail and interstate access. In this case, Chattanooga is located close to many of Toyota's suppliers.

[Rural King]

I read that the other day! Its great to know the site is already back in the running!

[ATLBrain]

I read about that in last weekends AJC. Georgia is actually encouraging the Chattanooga site as it would spur additional jobs in North Georgia too. Right now (post-Kia) the state is just leaving the welcome mat out for Toyota's suppliers. I've heard that the Chattanooga site was the best one of all that Kia looked at. However, the site couldn't overcome the fact that it was farther away from the Hyundai plant in Montgomery.

I understand that TN passed legislation to be more competitive with incentives.

[Hankster]

I read about that in last weekends AJC. Georgia is actually encouraging the Chattanooga site as it would spur additional jobs in North Georgia too. Right now (post-Kia) the state is just leaving the welcome mat out for Toyota's suppliers. I've heard that the Chattanooga site was the best one of all that Kia looked at. However, the site couldn't overcome the fact that it was farther away from the Hyundai plant in Montgomery.

I understand that TN passed legislation to be more competitive with incentives.

It's going to take all of the above to land this plant in Chattanooga. There will be a bidding war, and a lot of politics will take place. I read where Roanoke might have a leg up among the sites, because there currently in not an automotive plant in Virginia. Locating in Virginia might give Toyota greater political power in influencing future goverment policy decisions. Still, I think that Chattanooga will have to be seriously considered, and it really does help to have Georgia supporting Chattanooga for this one. Enterprise South is only 8 miles up I-75 from Georgia.

[HABANERO7]

Currently there are Denso Manufacturing facilities in the Tennessee Valley cities of Athens and Maryville. Denso currently manufactures electronic control systems, fuel management systems, and other internal electronic systems for Toyota.

Here is a link to the Maryville site.

http://www.densocorp-na-dmtn.com/index.html

[Rural King]

Japanese manufacturing firms really like East Tennessee, and Tennessee in general. They seem to like geography and culture of East Tennessee in particular from what I've read. So I think that East Tennessee would be high on the list of Toyota due to this reason, and as Habenero7 has stated the already well established presence of Denso in East Tennessee.

For anyone interested in learning more about Japanese views on and interest in Tennessee I would refer you to this book: "Japanese Industry in the American South" by Dr. Kim Choong Soon. It is from 1995, but provides excellent data and insight into the views of the Japanese business world in regards to doing business in the South, in particular Tennessee. It is an excellent read.

[Hankster]

Because of Nissan already being located in Tennessee, there are tons of parts suppliers already located here, many of which already supply Toyota as well. I'm quite sure that Denso would be one of them. I really think that all things considered, Chattanooga really has a good chance of landing this Toyota plant. It's hard to imagine a better result for Enterprise South!

[flith]

Enterprise South is still in the Running for Project Pine Tree. Whoever is behind Project Pine Tree hasn't come forward yet to make an announcement. It is thought to be European probably Audi. Audi is also looking at moving it Headquarters from Detroit to Atlanta.

[Hankster]

Enterprise South is still in the Running for Project Pine Tree. Whoever is behind Project Pine Tree hasn't come forward yet to make an announcement. It is thought to be European probably Audi. Audi is also looking at moving it Headquarters from Detroit to Atlanta.

I heard about that project about a year ago. Whoever is behind this project (I've heard Audi or BMW as being the most likely) has been extremely quiet. I wonder if they are serious about building? If I had my choice between Audi or Toyota, I'd take Toyota in a heartbeat. Still, landing Audi or BMW would be a feather in Chattanooga's cap!

[smeagolsfree]

I saw this in the paper. I am hoping Chattanooga area lands one this time around.

[DruidCity]

. Georgia is actually encouraging the Chattanooga site as it would spur additional jobs in North Georgia too.

You can count on Alabama's support, too, since Toyota has an engine plant in Huntsville.

Honestly, when the competition is just Roanoke, VA, Greensboro, NC and Northeast Arkansas, I have to think Chattanooga compares very, very favorably to all other sites for quality of life and proximity to existing auto suppliers.

[Hankster]

You can count on Alabama's support, too, since Toyota has an engine plant in Huntsville.

Honestly, when the competition is just Roanoke, VA, Greensboro, NC and Northeast Arkansas, I have to think Chattanooga compares very, very favorably to all other sites for quality of life and proximity to existing auto suppliers.

If we can get support from three states, Tennessee, Alabama, and Georgia on this one (and I think it's resonable to assume so), I think we have a real chance to land this thing!

[flith]

I saw an article in the TimesFreePress on the 1st of May that discussed how Chattanooga missing out on Kia was probably a blessing in disguise. Especially with the trouble Kia and Hundai are having back in S. Korea, it also gave the city/county and state more experience on what is out there as far as incentives go, and they have a shot at a more established company: Toyota.

I have to agree

[Clobber]

If we can get support from three states, Tennessee, Alabama, and Georgia on this one (and I think it's resonable to assume so), I think we have a real chance to land this thing!

I wonder how the Chattanooga site compares with the NE Ark site (which is basically in a Memphis suburb, Marion, I think). Hopefully there are enough auto plants down the line for both sites to get plants.

[Hankster]

I wonder how the Chattanooga site compares with the NE Ark site (which is basically in a Memphis suburb, Marion, I think). Hopefully there are enough auto plants down the line for both sites to get plants.

I have read from some other websites that the NE Arkansas site and Chattanooga's are far and away the two best sites. Both are large, and have all the necessary access to railroads and interstate. I think the Chattanooga site is located considerably closer to most of Toyota's parts suppliers, and that may be a big advantage. How the labor force of the two areas is percieved by Toyota is a bid consideration. My guess is that Chattanooga has a slight advantage there, too. I think Arkansas may have a political advantage over Chattanooga, because there currently are no auto assembly plants in Arkansas, while Tennessee has two. Finally, the incentive packages offered by the two sites may have a significant bearing on Toyota's decision. It will be quite interesting to see how this goes. I hope Toyota makes a decision sooner rather than later. However, it wouldn't surprise me if it takes a year of longer before they go forward.

[sleepy]

The Marion facility--about 4 miles from downtown Memphis--would draw its labor force from the entire Memphis msa.

[Clobber]

I have read from some other websites that the NE Arkansas sit and Chattanooga's are far and away the two best sites. Both are large, and have all the necessary access to railroads and interstate. I think the Chattanooga site is located considerably closer to most of Toyota's parts suppliers, and that may be a big advantage. How the labor force of the two areas is percieved by Toyota is a bid consideration. My guess is that Chattanooga has a slight advantage there, too. I think Arkansas may have a political advantage over Chattanooga, because there currently are no auto assembly plants in Arkansas, while Tennessee has two. Finally, the incentive packages offered by the two sites may have a significant bearing on Toyota's decision. It will be quite interesting to see how this goes. I hope Toyota makes a decision sooner rather than later. However, it wouldn't surprise me if it takes a year of longer before they go forward.

Yeah, I don't know anything about the Chatty suppliers. When Toyota awarded their plant to San Antonio, they also awarded a parts plant (engines?) to Jackson, TN, and since then some suppliers have been starting to sprout in Arkansas as well, without an automotive assembly announcement. And a subsidiary that makes industrial trucks will be opening up an assembly plant in the Marion area. This might all be chump change compared with what is going on in the AL-GA-ETN triangle. But it's a promising start. But it does seem strange that so many Toyota-related facilities will be built in the area without an assembly plant, b/c it's so far from any other Toyota facilities.

how many Toyota assembly plants are there now in N.A.? 7? 8? Toyota's next plant might not be their last.

[monsoon]

Honestly, when the competition is just Roanoke, VA, Greensboro, NC and Northeast Arkansas, I have to think Chattanooga compares very, very favorably to all other sites for quality of life and proximity to existing auto suppliers.

One thing I will point out is there are about 50,000 - 60,000 people in the area between Greensboro and Charlotte in the auto parts building business. Many of them are owned by the Japanese so Toyota would be a good fit in that area as well. They all sell parts to all of the auto manufacturers assembling vehicles in the US.

[Rural King]

Yeah, I don't know anything about the Chatty suppliers. When Toyota awarded their plant to San Antonio, they also awarded a parts plant (engines?) to Jackson, TN, and since then some suppliers have been starting to sprout in Arkansas as well, without an automotive assembly announcement. And a subsidiary that makes industrial trucks will be opening up an assembly plant in the Marion area.

Yep, Toyota has a engine plant in Jackson under the name Bodine Aluminum. It produces V-6 engines now, but will eventually make V-8 engines as well. It was a 164 million dollar investment in the City of Jackson and will provide about 220 high paying jobs by the time it is at full production sometime in 2007.

Article from the Jackson Sun from a few months back in November when the plant went online:

http://www.jacksonsun.com/apps/pbcs.dll/ar.../511100314/1002

I think that East Tennessee and N. Carolina would have the greatest advantage right now do to the current heavy Japanese auto parts manufacturing base in the region (esp. East TN). I would give the edge to Chattanooga since the Japanese over the last 20 years have had a very positive experience in operating in the region, which has led them to view the region, and Tennessee on the whole, very postively. Also, Japanese management sent over to work in established plants seem very fond and content living in East Tennessee from what I read, which leads to the best and brightest of Japanese firms not being opposed to going to the region to live for years at a time; which one would figure would be a big plus to the management back in Japan when looking at sites.

I would love to see a Toyota plant in Marion, Ark, and really like to see a site in West Tennessee like the Crockett County TVA Mega-Site or the Cates Landing (Lake) get looked at seriously for this plant, but I think Chattanooga definately has the edge at the moment from my purely speculative personal perspective.

[Hankster]

I just read that it was announced today that Toyota will be increasing the output of their Huntsville, AL engine plant up to 400,000 engines per year adding hundreds more jobs and increasing their investment in Huntsville to nearly half a Billlion dollars. This news certainly doesn't hurt Chattanooga's chances of landing the assembly plant.