New West Point Plant to Employ 2,500 Directly and an additional 2,500 through Suppliers
Georgia's automotive sector has been hit with some bad news in recent months. Only in November General Motors announced that
it would cut thousands of jobs with the closure of the Doraville manufacturing plant, no later than 2008, followed up more recently with similar news from Ford Motor Company regarding its Hapeville facility which could shut down as early as August after the once-popular Taurus finishes production.
In real terms, shutting down the Doraville plant, which incidentally was retrofitted for van production to the tune of $150 million USD only three years ago, means the loss of about 3,000 jobs and a 10 percent reduction in local city taxes - approximately $800,000 to $1 million USD in property taxes and fees. And what about Hapeville? Despite Georgia offering Ford $88 million USD in
incentives to expand its Hapeville plant, 2,100 workers are now facing unemployment. And that's only the auto sector.
Adding insult to injury is what the Atlanta Journal-Constitution called "a crippling combination of bad economic news for Atlanta and Georgia", which included the sale of Georgia-Pacific and Scientific-Atlanta, cuts at Bellsouth and the bankruptcy announcement by longtime Atlanta employer Delta Air Lines.
While there have been attempts by local politician Vernon Jones to save the plants, Georgia is being forced to focus on the future, made a great deal brighter by Kia Motors and its announcement that its first plant outside of South Korea would be built in West Point, Troup County.
The world's
fastest growing nameplate is enjoying great success throughout the United States and Canada, thanks to the value proposition its vehicles offer cash-strapped, quality conscious North American consumers.
"Kia Motors has entered an aggressive growth phase in the U.S and the decision by KMC to build a manufacturing facility in West Point, Troup County, Georgia is the latest example of the company's commitment to the marketplace," said Euisun Chung, President and CEO, Kia Motors Corporation. "Kia has made tremendous investments in design and engineering to better meet the needs and desires of American consumers, and this new plant will produce high quality, well-styled vehicles with the safety features and affordability that customers expect from Kia."
The West Point manufacturing facility, to be built on 2,200 acres, will have the capability of building up to 300,000 vehicles per annum once production begins in 2009, and create about 2,500 local jobs. Additionally, between
five and six suppliers are expected to set up operations around the plant in Troup County, resulting in another 2,000 jobs.
Truly, the reality Georgia is facing, losing up to 5,100 jobs from two members of the Big 3, only to gain what looks to eventually become a similar number back from an imported brand and its associated suppliers, reflects on the entire industry. Yes, despite the doom and gloom in Detroit, the new vehicle market is stronger than ever, and is expected to grow further in upcoming years. The growth, however, is driven by brands such as Kia and its sibling-nameplate Hyundai, as well as rival imports Toyota, Honda, Nissan, Mazda, and the list goes on. Only Mitsubishi has seen its sales slide in recent years, although it looks to be making a slow and steady comeback. On the other hand, only Chrysler Group, now owned by German automaker DaimlerChrysler, previously Daimler-Benz, parent company to Mercedes-Benz, is profitable amongst domestic automakers.
Georgia's automotive sector has been hit with some bad news in recent months. Only in November General Motors announced that
 |
| In a time that sees GM and Ford closing plants, Kia is opening up its first manufacturing facility outside of South Korea. (Photo: Kia Canada) |
In real terms, shutting down the Doraville plant, which incidentally was retrofitted for van production to the tune of $150 million USD only three years ago, means the loss of about 3,000 jobs and a 10 percent reduction in local city taxes - approximately $800,000 to $1 million USD in property taxes and fees. And what about Hapeville? Despite Georgia offering Ford $88 million USD in
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| A new major employer to help out Georgia's crippling economy is a breath of fresh air for all who live near or within Troup County. (Photo: Rob Rothwell, Canadian Auto Press) |
Adding insult to injury is what the Atlanta Journal-Constitution called "a crippling combination of bad economic news for Atlanta and Georgia", which included the sale of Georgia-Pacific and Scientific-Atlanta, cuts at Bellsouth and the bankruptcy announcement by longtime Atlanta employer Delta Air Lines.
While there have been attempts by local politician Vernon Jones to save the plants, Georgia is being forced to focus on the future, made a great deal brighter by Kia Motors and its announcement that its first plant outside of South Korea would be built in West Point, Troup County.
The world's
 |
| Kia is enjoying great success throughout North America thanks to the value proposition its vehicles offer to consumers. (Photo: Trevor Hofmann, Canadian Auto Press) |
"Kia Motors has entered an aggressive growth phase in the U.S and the decision by KMC to build a manufacturing facility in West Point, Troup County, Georgia is the latest example of the company's commitment to the marketplace," said Euisun Chung, President and CEO, Kia Motors Corporation. "Kia has made tremendous investments in design and engineering to better meet the needs and desires of American consumers, and this new plant will produce high quality, well-styled vehicles with the safety features and affordability that customers expect from Kia."
The West Point manufacturing facility, to be built on 2,200 acres, will have the capability of building up to 300,000 vehicles per annum once production begins in 2009, and create about 2,500 local jobs. Additionally, between
 |
| The West Point plant will have the capability of building up to 300,000 vehicles per annum once production begins in 2009. (Photo: Alexandra Straub, Canadian Auto Press) |
Truly, the reality Georgia is facing, losing up to 5,100 jobs from two members of the Big 3, only to gain what looks to eventually become a similar number back from an imported brand and its associated suppliers, reflects on the entire industry. Yes, despite the doom and gloom in Detroit, the new vehicle market is stronger than ever, and is expected to grow further in upcoming years. The growth, however, is driven by brands such as Kia and its sibling-nameplate Hyundai, as well as rival imports Toyota, Honda, Nissan, Mazda, and the list goes on. Only Mitsubishi has seen its sales slide in recent years, although it looks to be making a slow and steady comeback. On the other hand, only Chrysler Group, now owned by German automaker DaimlerChrysler, previously Daimler-Benz, parent company to Mercedes-Benz, is profitable amongst domestic automakers.