Georgia Gets Kia Nod?

[Ovaltine]

From the description of the article below, Michigan is suffering from much of the same economic problems as Georgia (if not more!) Why couldn't Michigan be a consideration for KIA?

 

From what I've read, a southern location is probably more viable due to the proximity to Hyundai's southern Alabama plant suppliers. But is that the ONLY reason why KIA couldn't locate up here?

 

-Ovaltine

 

 

http://www.thecarconnection.com/Auto_News/...173.A10076.html

 

Georgia Gets Kia Nod?

 

South Korea's second-largest automaker, Kia Motors, is considering building its planned U.S. plant in the state of Georgia, not in Mississippi, a local report from the latter state said.

 

Since last year, Kia Motors, an affiliate of South Korea's top automaker Hyundai, has been looking for a site in the U.S. to set up a production line. Company officials were quoted that Georgia is the most probable candidate, unless other states offer unprecedented incentives.

 

Georgia has been a frequent loser in the bidding for new automotive plants. Just last year, DaimlerChrysler officially quashed plans to build a Sprinter plant outside Savannah. Ford had identified a site in Meriwether County on which had intended to build a new plant, only to cancel plans and eventually, announce the closing of its Atlanta plant. Last year, Kia officials were said to have chosen a site in eastern Mississippi for the plant, but that may have been done to encourage other states to sharpen their bids.

 

If Georgia does win the battle of state incentives, it will be out of keen economic need. The state is faced with the loss of about 5000 jobs in the next two years as Ford closes the Hapeville plant that builds the Taurus and the Doraville plant that builds GM minivans. Both plants are in the metro Atlanta area, while the site of the new Kia plant would likely be a Greenfield location on the I-85 corridor linking Atlanta and Montgomery, Ala., the site of Kia sister company Hyundai's new assembly plant. Georgia is also facing the bankruptcy of Delta Airlines and the loss of a huge military base within the city, Fort McPherson. -Peter Chang and Marty Padgett

Edited February 28, 2006 by Ovaltine

[bec5150]

I think they like to go to the South because of three reasons:

 

1) Utilities are cheaper

2) No seasonal weather to deal with (read snow)

3) Comartitively little pressure from the Unions when compared to up North.