An Alabama Industry Profile

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An Alabama Industry Profile Economic Development Partnership of Alabama www.edpa.org Automotive Industry Alabama is the home to Mercedes-Benz, Honda and Hyundai assembly plants. Other
automakers have chosen Alabama to build their engines, including International Diesel,
which produces advanced technology diesel engines here. When Toyota built its first V-8
engine facility outside of Japan in 2003, it selected Alabama. Over the last 10 years, the
automotive industry has invested over $7 billion and created more than 35,000 new jobs
in Alabama. Summary In 1998, the first full year of production, Mercedes produced 68,800 units in
Alabama. In 2006, automakers made
698,086 cars and light-trucks in
Alabama. Motor vehicles were Alabamas top export in 2006 at over $4.9 billion
equivalent to 35 percent of the states
total exports. Alabamas automotive industry represents thirteen percent of the states
manufacturing gross domestic product. Prior to 1997 when the first M-Class rolled off Mercedes production line,
Alabama produced no passenger
vehicles. In 2006, Alabama built its
2,000,000 th automobile. There are more than 90 automotive suppliers in Alabama that serve either
Honda, Hyundai, or Mercedes. Alabama ranks 6 th in U.S. car and light- truck production (minivans-pickups-
SUVs). Source: Alabama Development Office Intl. Trade Div., 2006
Automotive News Data Center, 2007
Economic Development Partnership of Alabama, 2007
U.S. Dept. of Commerce, Bureau of Economic Analysis, 2005
Employment The auto industry in Alabama accounted
for 44,834 direct jobs and 79,356 indirect
jobs in 2005 with a total payroll of $4.8
billion. Average Weekly Wage: 2005 Alabama Motor Vehicle Mfg.: $1,349 All Alabama Mfg Industries: $782 All Alabama Industries: $665 Source: Alabama Automotive Manufacturers Assn., 2006
U.S. Department of Labor, Bureau of Labor Statistics, 2006 Trends In 1997, the first year of automotive
manufacturing in Alabama, 1,800 persons
were employed. In 2005, vehicle
assembly employment grew to 11,400 in
the state. When the first car made in Alabama rolled
off the assembly line in 1997, production
capacity was 80,000 vehicles. In 2005,
Alabamas production capacity reached
760,000 vehicles annually. Car and truck engine manufacturing in
Alabama began in 2001. By 2006,
combined engine production capacity at Honda, Hyundai, Toyota and International Diesel had risen to 1.2 million engines annually. Overview- Southern Business and Development magazine has four times in a row named Alabama
"State of Year" most recently in 2006, based on its record of job growth and economic development.
Growth in the automotive industry is only one example of Alabama's successful corporate investments.
The state has long been home to many world class companies including Mercedes, Wellborn Cabinets,
Honda, 3M, Boeing and more recently EADS, Toyota and Hyundai.

Alabama has recorded strong economic growth numbers. Its economic cycles have mirrored those of
the United States, though on a more moderate scale. Manufacturing is at the center of the Alabama
economy. The manufacturing sector accounts for almost 20 percent of the gross domestic product and
15 percent of the states nonagricultural employment. A major contributor to the state's success is
AIDT, the state's workforce training program ranked #1 in the nation by Expansion Management in
2006, helps to train a capable workforce for new and expanding companies.

Alabama is a state with great economic growth. The states pro-business climate allows its corporate
citizens to grow, prosper and profit. At the center of the United States fastest growing, most populous
region, and with 11 metropolitan areas and a variety of industry sectors, Alabamas economy is
characterized by great diversity and a bright future for success. An Alabama Industry Profile Economic Development Partnership of Alabama www.edpa.org Recent Expansions and New Projects (Selected) Company County Product Jobs Created Investment (Millions) 2007 Hyundai Motor Mfg Alabama Montgomery Four-cylinder engines for Hyundai and Kia assembly plants 522 $270 (Expansion) Alabama Cullman Yutaka Technologies Cullman Exhaust systems, catalytic converters 200 $50 (New) TWB Company Autauga Laser welding of body parts 20 $6 (New) KTNA Jackson Interior components 20 N.A. (New) Seohan Auto USA/Seohan Driveshaft USA Lee Front and rear axles 200 $40 (New) 2006 Yachiyo Manufacturing of Ala. St. Clair Roof and spare tire assemblies 42 $28 (Expansion) Daewon America Lee Suspension bars and coils 170 N.A. (New) Kwang-Sung America Tallapoosa Plastic hoses and sun visors 150 N.A. (New) Prince Metal Stampings USA Etowah Stampings; engine/structural parts 60 $25 (Expansion) Cumberland Plastic Systems Lee Injection-molded plastic parts 35 $5 (New) Hanil E-Hwa Interior Systems Dallas Interior trims; head linings 150 N.A. (Expansion) Alto Products Corporation Escambia Clutches 17 $1 (Expansion) 2005 Maxforma Plastics Lee Bumper cores/back beams 100 $14 (New) American Trim Cullman Powder coatings; roll-formed trim 24 $2 (Expansion) Richway Transportation Svcs. Butler Auto steel transportation terminal 15 $2 (New) Topre America Corporation Cullman Metal stampings 80 $15 (Expansion) North American Lighting Colbert Automotive tail lamps 320 $22 (New) Precoat Metals Jefferson Metal coil coating/laminating/slitting 80 $34 (New) Hanil E-Hwa Interior Systems Dallas Interior trims; head linings 240 $38 (New) Brose Tuscaloosa Tuscaloosa Door systems 72 $5 (Expansion) Hyundai Polytech America Co. Barbour Anti-vibration rubber/plastic parts 35 $1 (New) Confederate Motor Company Jefferson High-performance motorcycles 100 $10 (New) 2004 Toyota Motor Mfg., Alabama Madison V-8 Tundra & Sequoia engines 300 $250 (Expansion) Ai3 Tuscaloosa Sequencing; logistics 223 $13 (New) Mando America Corporation Lee Brakes, steering, suspension 170 $35 (Expansion) Cullman Casting Corporation Cullman Industrial gray iron castings 50 $60 (New) Honda Manufacturing of Ala. Talladega Machined V-6 engine parts 100 $70 (Expansion) Electricfil Automotive Limestone Ignition & transmission sensors 75 $5 (New) Renosol Corporation Dallas Polyurethane seating 120 $9 (New) Teksid Aluminum Components Talladega Aluminum V-6 cylinder blocks 93 $43 (Expansion) Mobis Alabama Montgomery Plastics; parts distribution 515 $90 (Expansion) Collins & Aikman - Mobis Montgomery Instrument panels 49 $7 (New) 2003 Ogihara America Corp. Jefferson Stamped auto body parts 20 $180 (Expansion) Bridgewater Interiors Calhoun Seating systems 250 $13 (New) HS R&A Co., Ltd. Coffee Weather stripping, hoses 350 $20 (New) Halla Climate Control Macon Bumpers, lights, radiators 150 $28 (New) SMART Alabama Crenshaw Stamped metal parts 400 $110 (New) Lear Corporation Montgomery Wire harnesses 285 $16 (New) Daehan Solution Co. Lowndes Sun visors; interiors; insulation 180 $25 (New) Hwashin America Corp. Butler Chassis & drive trains 400 $70 (New) Decoma Systems Integration Jefferson Exterior plastics; bumpers 80 $3 (New) Plastech Engineered Products Jefferson Interior/exterior plastic parts 400 $50 (New) N.A. Not available An Alabama Industry Profile Economic Development Partnership of Alabama www.edpa.org Automotive Assembly Plants S TARS FELL ON A LABAMA : M ERCEDES -B ENZ Since Mercedes-Benz U.S. International (MBUSI) selected
Alabama to be the home of its first North American
manufacturing facility in 1993, the company has enjoyed
continued success and growth. The plant manufactures the
second-generation M-Class All Activity Vehicle and the new
four-wheel drive, six-passenger R-Class Grand Sports Tourer
sports wagon. In April 2006, Mercedes-Benz introduced its third
new Alabama-made automobile the GL-Class, a seven-seat,
full-sized, luxury sports utility vehicle. MBUSI has expanded
twice at their Tuscaloosa County site - the most recent addition
is a $600 million investment completed in early 2005 to double plant size and production to 160,000 units. The total investment in the Alabama facility now represents
$1 billion and 4,500 team members.
H ONDA D ECLARES , "S WEET H OME , A LABAMA " Honda Manufacturing of Alabama announced in May 1999 that
it would construct a $440 million, 1,500-employee
comprehensive automobile manufacturing facility in Lincoln.
Mass production began in November 2001 six months ahead
of schedule. After two plant expansions, Honda has doubled
production capacity to 300,000 engines and vehicles per year
and raised the company's investment in Alabama to $1.2 billion.
Complementing the award-winning Odyssey minivan, a second
assembly line began mass production of the Honda Pilot sport
utility vehicle and engine in April 2004. With the startup of production of the '05 model in August 2004, all Odyssey production in North America shifted to Alabama,
making the state the exclusive North American production source for the top-rated Odyssey. In
November 2004, Honda assigned its Alabama plant even greater responsibility for engine production.
Billing itself as "an engine company", Honda announced a $70-million, 100-job expansion to enable the 3-
year old Lincoln facility to machine low-tolerance engine components, now made by decades-old Honda
factories in Ohio and Japan. Total plant employment currently stands at 4,500 associates. In October
2006 it was announced that Honda Manufacturing Alabama would also become the sole production
source of the Honda Pilot sport utility vehicle.
H YUNDAI S TATES , A LABAMA I S I NDEED THE E XCELLENT C HOICE On April 1, 2002, Alabama firmly established its position as the
leader in the Southern Automotive Corridor when Hyundai
Motor Manufacturing Alabama announced that it chose a 1,744-
acre site in Montgomery, Alabama for the companys first U.S.
automotive manufacturing facility. The $1.1 billion, 2-million
square-foot complex, which employs 2,700 team members,
produces the Sonata sedan and the next generation Santa Fe
sport utility vehicle. The new Hyundai subsidiary, Hyundai
Motor Manufacturing Alabama, includes a general assembly
facility, as well as, an engine machining and assembly plant,
stamping shop, welding shop, paint shop, and a 2.3-mile test track. At peak production, 300,000 vehicles and engines will be produced each year. In March 2007, Hyundai announced plans to build its second engine plant in Montgomery, Alabama. The $270 million,
349,440-square-foot facility will produce four-cylinder engines for Hyundai and the new Kia plant in West
Point, Georgia. The engine plant, estimated to create about 520 jobs, will begin mass output in
September 2008. An Alabama Industry Profile Economic Development Partnership of Alabama www.edpa.org Engine Plants in Alabama I NTERNATIONAL D IESEL OF A LABAMA announced in April 1999 that it would open a $350 million facility in Huntsvilles Jetplex Industrial Park to build a new generation of
advanced technology V-6 and V-8 diesel engines. International Diesel, a wholly-owned
subsidiary of International Truck and Engine Corporation, launched production at the 700,000
square-foot plant in May 2002. Five hundred ten (510) V-8 engines are made daily for International Truck and Engine, International School Bus, and Ford Motor Company. V-6 engine
production began in early 2005 with the start-up of the Low Cab Forward Joint Venture with Ford. In
2007, the Huntsville plant will manufacture Clean Diesel technology engines to meet strict, new
environmental emission standards. International Truck & Engine announced in October 2006 an
expansion in Huntsville to build new, modern class 8 big bore diesel engines. The new facility will
employ 175 people at full production in 2008.
T OYOTA M OTOR C ORPORATION announced in February 2001 that it had selected a 200- acre site in Huntsville for its first plant outside of Japan to build 120,000 V-8 engines annually
for its full-size Tundra pickup truck. Toyota Motor Manufacturing, Alabama, Inc. invested $220 million in the 400,000 square-foot machining and assembly plant that employed 350. The facility began
production in spring 2003. The company announced a $20 million expansion project in July 2003 that brought 150 new jobs to Huntsville with the additional capacity to build 130,000 V-6 engines annually for
the Tacoma and Tundra pickup trucks. In 2004, Toyota announced a second major expansion for the
Huntsville facility. The $250 million project will add 300 jobs and more than double V-8 production while
increasing the annual capacity to 400,000 units. The move will supply all of Toyotas planned V-8 engine
needs for North America. An Alabama Industry Profile Economic Development Partnership of Alabama www.edpa.org Major Milestones 1960s-1990s: Alabamas automotive sector grew from 15 companies to 86 in 1991.
1993: Mercedes-Benz announced its new M-Class would be built in
Tuscaloosa, Alabama.
1998: Mercedes produced 68,800 units in the first full year of
production.
1999: Honda chose Alabama to build the Odyssey minivan and engines.
International Diesel selected Huntsville, Alabama to produce a
new generation of V-6 and V-8 diesel engines.
2000: Mercedes announced a $600 million expansion.
2001: Honda announced a production increase for its Alabama plant
and addition of a second $425 million assembly line bringing
Hondas total investment to $1 billion.
Toyota Motor Corporation announced that it would produce
120,000 V-8 engines annually in Huntsville, Alabama.
2002: Hyundai selected Montgomery, Alabama as home for its first
U.S. automotive manufacturing facility, investing $1.1 billion. Mercedes announced that its new plant expansion would
produce the new Grand Sports Tourer. Combined production at Mercedes and Honda was 230,000
units.
2003: Honda announced consolidation of all North American
production of Odyssey to Alabama and that its second
assembly line would produce the Honda Pilot.
Mercedes celebrated 10 years in Alabama. Toyota announced expansion plans to build a V-6 engine for the Tacoma and
Tundra pickup trucks raising the companys total investment in Alabama to $240
million.
2004: Toyota Motor Corporation will nearly double the size of its Huntsville engine plant
with a $250 million expansion that will supply all of Toyotas planned V-8 engine
needs for North America.
Honda will invest an additional $70 million in its Alabama V-6 engine facility to
machine engine crankshafts and connecting rods, currently made by Honda in
Japan and Ohio.



An Alabama Industry Profile Economic Development Partnership of Alabama www.edpa.org Major Milestones


2005: Combined vehicle production capacity at Mercedes, Honda and Hyundai reached
760,000 vehicles per year in Alabama with Hyundais U.S. manufacturing launch
at Montgomery.
Car and truck engine production capacity in Alabama rose to 1,000,000 units
annually at Honda, International Diesel, Toyota and Hyundai.
2006: With the roll-out of the Hyundai Santa Fe model in Montgomery and Mercedes GL Class in Tuscaloosa, Alabama automakers now manufacture seven different vehicles, barely 10 years after first beginning production.
Honda celebrated production of the 1 millionth vehicle made in Alabama.
2007: Hyundai announced it will construct a second engine plant at its Montgomery production facility.


Source: Alabama Development Office International Trade Division
Alabama Automotive Manufacturers Association
Automotive News
Bureau of Economic Analysis, U.S. Department of Commerce
Economic Development Partnership of Alabama 5/07

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