Posted on 03/13/2006 2:20:29 PM PST by nickcarraway
ATLANTA(AP) -- South Korean automaker Kia Motors Corp. will open a $1.2 billion plant in Georgia, creating almost 5,500 new jobs in the state, officials announced Sunday night.
Cars will begin rolling off the plant's two assembly lines in August 2008. The two million square foot plant will be in West Point, Ga., a town of 4,000 near the Alabama border. It will be Kia's first U.S. manufacturing plant. Kia's parent company, Hyundai Motor Company, already has a plant in Montgomery, Ala. Proximity to that site -- combined with a $258 million incentive package from the state -- helped woo Kia executives.
Gov. Sonny Perdue arrived in Seoul, South Korea over the weekend to sign off on the deal, which came at 7:55 p.m. EST Sunday.
The deal left Troup County officials elated.
"I never dreamed that this opportunity would come along for Troup," said Jane Fryer president of the Troup Chamber of Commerce. "This is something economic developers dream of. We've lost a lot of jobs in the past few years. this will help make up for those losses."
"It's fantastic news for all of us," said Mayor Jeff Lukken of LaGrange, the county seat of Troup. "It's just going to be a huge boost for our county and several counties around the area. It's going to have an effect on every type of business in our area, whether you sell cars or hot dogs."
Perdue said Kia's decision to locate in the state "is a testament to the tools, experience and know-how Georgia will deliver to one of the automotive industry's leading innovators."
The plant will hire 2,893 workers when it opens at an average annual salary of $50,000. Another 2,600 employees are expected to work at five supply companies, which have committed to place plants in Georgia near West Point to feed parts and materials to the main plant.
Kia President and chief executive officer E.S. Chung said the company, which produces budget sedans and sports utility vehicles, "has entered an aggressive growth phase in the U.S."
The Georgia plant is expected to produce 300,000 to 400,000 vehicles annually.
The arrival of Kia is welcome news for Georgia, which has been hit hard by Ford and General Motors' decisions to shutter their plants in the state as well as job slashing at corporate stalwarts BellSouth and Delta (Related: Delta Arbitation Begins).
"This is the best news that Georgia has heard in a long time," Rajeev Dhawan, Director of Economic Forecasting Center at Georgia State University, said.
Dhawan said the pay scale was impressive and that such "premium" blue collar jobs have become increasingly rare.
"The only ones coming online are through the foreign auto plants," he said.
Dhawan noted that auto workers from the Ford plant in Hapeville and the GM plant in Doraville might be able to put their skills to work at the new plant, although many might have to relocate to do so.
The jobs also provide a boost for Perdue, who is facing re-election this year and has been under attack for lackluster employment numbers.
The Republican governor began courting the automaker with an October 2003 visit to South Korea. In January he hosted Kia's president at the state Capitol.
Mississippi and Tennessee had also been pursuing the plant.
Local officials in Georgia cheered the announcement saying it would provide a major boost.
"Not only will Kia bring jobs, it will drive the creation of an industry cluster that will help ensure future prosperity for the entire area," Diethard Lindner, chairman of the Development Authority of LaGrange, said.
The new Kia plant will build two vehicle lines and include and engine assembly line, paint shop training center and visitor center. It will be built on 3,300 acre site at the intersection of I-85 and Webb Road in Troup County. A new interchange will be built off I-85 to make room for the plant.
The hefty state incentive package includes $75.9 million in job tax credits over five years, $20.2 million for a job training center on the site and $60.5 million to purchase and prepare the site.
West Point and Troup County are offering up $130 million in property tax abatements over 15 years.
A groundbreaking ceremony for the plant is scheduled for April 25.
Kia Motors America reported selling 18,110 vehicles in January, up 6 percent from January 2005. For 2005, Kia's auto sales increased about 2.5 percent to 275,851 from 270,055.
The company has opened a U.S. headquarters in Irvine, Calif. that houses the company's research and development and administrative operations.
Wow.
And I thought that it was a money-losing proposition to build cars in America.....
....and I own a new GM van....Uplander, FYI
....and a Toyota car too....
This is sweet!We give the tax breaks and ALA gets half the jobs.
Didn't see anything about unions or UAW in the story. Could be a good reason to build an auto manufacturing facility anywhere.
And Detroit cannot relocate its own plants to the south
(where wages are cheaper) because its contracts with the unions require it to pay the same union wage everywhere in the country.
So foreign car dealers will come here and make better cars for less money, while the Detroit management and the unions
haggle themselves into oblivion. . .
We're gonna need more guest workers.
The "blue" states are ripping out their own entrails in a business sense with high taxes, wasteful spending, and anti-business measures (Wal-Mart laws). Companies are rightfully relocating to the "red" states, which are more business friendly, have lower taxes, and basically make for a welcoming environment. What happens? Jobs flows to those states....and so do blue staters who suddenly find their political objections overshadowed by the need to eat. In other words, after polluting their own states with their political feces, they will show up on our doorstep, hat in hand, looking not only to partake in the business climate, but to infect it with their own putrescent views. I hate to be a glass is half empty kind of guy, but it does make me a bit nervous for the future.
They told her tough luck....cause she didn't bring the car in for check-ups...that were written in the fine print on the contract.
Anybody thinking of buying a KIA...might look into their service record. I've seen some nice looking KIA's....but I'd be wary.
FWIW-
Do you think Chia will start a plant in the states now too!
Can anyone say Corporate Welfare?
Of course, every other municipality/county/state was offering them welfare too.
http://www.ncpa.org/pd/unions/pduni/pduni10.html
American law specifically exempts union violence from possible prosecution.
(See link.)
Chee - chee- chee- chee- chia!!!
That's exactly as it should be. If you don't take care of the car they should not be expected to repair it for you when it takes a dump.
Is that why American makes can't match KIA's warranty? Who knew?
You don't expect them to replace her tranny, when routine service may well have prevented the problem from occurring in the first place?
My KIA Sedona has 58,000 miles and the dealership has done a better job by far on honoring the warranty than any car I've ever owned. Every make of car has its glowing testimonials from satisfied customers and its anecdotal horror stories.
So you'd rather buy a Ford that was built in Mexico than a Asian/German car that was built in the USA?
Amen.....We are tired of hearing people complaining about how we do things: "We do it this way in NY (or pick any blue state)and we are going to scream (literally) until you change to our way. Stupid A donkeys.....
We owned a 2001 Spectra, traded it in on a 2003 Optima and got the owner loyalty discount. Both have been great cars. We'll most likely buy another one in the future.
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