Area Development Homepage >> Location USA >>

Hot United States FDI Sectors: Automotive

Mark Crawford (Location USA 2012)

Automotive has long anchored U.S. manufacturing and continues to attract billions in FDI, especially in the Southeast. It’s not just traditional car building either — big automotive projects also include green, alternatively powered vehicles. Dozens of new plants and expansions across the United States are energizing communities by creating thousands of new, good-paying jobs.

In Kentucky, for example, economic development tripled in 2010–2011. Vehicle manufacturing led the way, including some large FDI projects. In Louisville, French company Faurecia Interior Systems is investing about $33 million for a plant that will employ 425 workers. Other FDI automotive projects in the state are ZF Steering Systems ($95.8 million, 374 jobs) and Metalsa Structural Products ($25.1 million, 668 jobs). Hitachi Automotive also plans to spend $74.5 million for a plant in Berea to manufacture electric drive motors for next-generation electric and hybrid electric vehicles, creating 130 jobs. The Kentucky Economic Development Finance Authority provided Hitachi with $4 million in tax incentives through the Kentucky Business Investment Program.

Ohio has also been successful in landing foreign automotive projects. Canada-based Vehtek Systems is investing $100 million to expand its facility in Bowling Green. In the southern part of the state, Japan-based USUI International Corporation is constructing a $15.9 million plant in Sharonville to produce tubing for gas direct injection systems. The 120,000-square-foot facility will employ 180 people by 2013. Incentives include an enterprise zone tax benefit and 15-year tax exemption on identified project improvements.

Not all foreign automotive investment is in the Southeast or mid-central United States — locations in the West can still compete. Most recently, thanks to its green focus and high-tech prowess, Los Angeles was recently selected for the headquarters of environmentally friendly Chinese car and battery maker BYD. The move will create about 150 new engineering and management jobs.

Save/Share Article

About the Author

Mark Crawford
Mark Crawford is a full-time freelance writer in Madison, Wisconsin, who specializes in business writing. He is also the author of five books.

More articles by Mark Crawford

ASK AREA DEVELOPMENT

Have questions, comments or concerns about this article? Submit to Ask Area Development here and the author or an expert from our network of site selection and facility planning professionals will answer:

Privacy policy / GuidelinesArea Development will select a number of questions to answer each week. An Area Development representative will contact the submitting reader directly with feedback. Additionally, all submissions are eligible to appear online or in our print publication. If your question is selected for publication we will include and publish your first name, job title and industry only. The full identity of the submitting reader will not appear in published format.Area Development will not publish, share with any third parties, or use for marketing purposes any personal information submitted here without the express consent of the submitting reader.

News Items

Around The Web

Studies/Research

News Items

Around The Web

Studies/Research

German Auto Supplier Invests $60 Million On Michigan Expansion, Creating 450 jobs

State Resource Map

State News and Insight
Corporate Taxes
Business Incentives
Credits
Grants
Click on any state below

State Resource Sponsor

United States Inward Investment Location Profiles

ARKANSAS

Arkansas Is a Growing Gateway to World Trade

Global recruitment and trade are key elements of Governor Mike Beebe's strategic plan for economic development. The Arkansas Economic Development Commission (AEDC) is committed to attracting and retaining the best companies and the most advanced industries from around the world.

Little Rock, Arkansas: A Globally Recognized Brand

For two years in a row, the Little Rock region has been named "America's Fourth Strongest Economy" by the Brookings Institution's MetroMonitor. The Wall Street Journal calls it the nation's "Sixth Best Real Estate Market," while Forbes says it is America's "Seventh Best Place for Jobs."

CALIFORNIA

Energy Innovation from SMUD LEEDS Businesses to Sacramento

With so many states trying to lure businesses to their cities, why have such pioneering companies as Intel, Siemens Mobility, Micron, and SynapSense chosen to call Sacramento, California, home?

KENTUCKY

Kentucky Is a Global Business Center

Kentucky remains a leading location for foreign direct investment. Since January 2010, approximately 30 percent of all announced new investment resulted from FDI activity. Today, nearly 400 foreign-owned companies from almost 30 nations employ more than 75,000 people in the state.

NEW YORK

Buffalo Niagara — "Where Business Works"

Buffalo Niagara, located in western New York with a population of 1.5 million (2010), is a region that's truly on the rise. In the past decade more than 50 American, Canadian, and international companies have set up shop in Buffalo Niagara, drawn to the many unique benefits the region provides.

OKLAHOMA

Tulsa — Where Business Grows

Home to more than 900,000, Tulsa, Oklahoma perfectly balances convenience and affordability with the advantages of a highly skilled work force, a central location, a pro-business atmosphere, and an excellent quality of life.

TENNESSEE

Chattanooga: The CAN DO Community

Why have companies like Volkswagen, Alstom, Sanofi-Aventis, and Amazon.com invested more than $3 billion in Chattanooga during the worst economic downturn in recent memory?

site selection tools