News Article: An Audi plant in the U.S.? Georgia governor goes courting.....
06-20-2003, 09:54 AM
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News Article: An Audi plant in the U.S.? Georgia governor goes courting.....
Perdue makes Georgia case to Audi
By DAN CHAPMAN
The Atlanta Journal-Constitution
DUSSELDORF, Germany -- Despite the secrecy surrounding much of Gov. Sonny Perdue's first trade trip, the governor and his staff confirmed Tuesday they had met with Audi AG officials, who may again be considering a multimillion-dollar car plant in North America.
Perdue's packed European itinerary made no mention of the Monday visit with Audi officials in Ingolstadt, about an hour from Munich. Only a cryptic schedule notation -- "business meeting" -- hinted that the governor is positioning Georgia to compete for another highly prized plant.
Perdue spent most of Tuesday with representatives of Georgia's first auto plant acquisition. DaimlerChrysler, which is all but committed to building a van plant near Savannah, sent a private jet to pick up the governor and his coterie of state officials. After lunch in Dusseldorf, Perdue and his staff were given a 90-minute tour of the van plant, a facsimile of one to open along I-16 by 2006.
"It's an impressive facility," Perdue said, marveling at the robots and computers running much of the 550-van-a-day assembly line.
Perdue spent 2 1/2 hours with Audi on Monday attempting to persuade executives that when, or if, they decide to build a plant in North America, Georgia is the place to be.
"We're encouraged by our conversation with Audi," said Glenn Cornell, commissioner of the Georgia Department of Industry, Trade and Tourism. "You have to build a relationship so that when an opportunity comes along, you know who to call."
Georgia trade delegates have been calling this week on some of the biggest names in the automotive world, including Porsche, BMW, the Henlys Group and many parts companies.
Georgia, a late entry into the auto plant mania that swept the Southeast in the 1990s, has now decided it can't afford not to play the game. For proof, Georgia officials say, look no farther than the sprawling plant for Sprinter vans on the outskirts of Dusseldorf, much like the one planned for the Georgia community of Pooler.
"It will set a new standard for mechanical technology," Perdue said. "And I hope it will attract many suppliers to the area. We were able to meet with many of the vendors at lunch today, and we hope to bring some of them to Savannah."
Suppliers deliver thousands of parts each day to the Dusseldorf van plant. Steel tops, undercarriages and side pieces are first welded together by robots in the plant's hangar-sized body shop. The bodies are then hoisted onto conveyor belts and plunged into a "dip bath" that cleans grease and other impurities. Next stop is the assembly area, where the vans' interior components are attached.
Sandy Springs-based UPS is a Sprinter client, and DaimlerChrysler is certain other delivery companies, post offices, ambulance drivers and plumbers will be similarly smitten. Its board is expected next month to officially anoint Pooler.
But it is unlikely DaimlerChrysler would have chosen Georgia without $320 million in tax breaks, land, training and other incentives dangled by former Gov. Roy Barnes and the General Assembly. The proposed $754 million plant is targeted to turn out 110,000 vans a year by the end of the decade. As many as 3,300 people will be hired to build the vans.
Cornell said Tuesday another 10,000 jobs could be created in ancillary industries.
"It'll change the life of that region," he said, adding that people in coastal Georgia are already being trained. "We are going to recruit in inner-city Savannah. We'll target as many minority people as we can. We'll change the lives of so many people."
That is the dream Cornell and Perdue also share for Audi. A subsidiary of Volkswagen AG, Audi has for the last decade repeatedly considered building cars in the United States, Canada or Latin America.
"If the dollar weakens, in the long run, we would need another factory in the NAFTA area," Volkswagen Chairman Ferdinand Piech told the Financial Times Deutschland newspaper two years ago. Since then, the dollar has weakened against the euro, and Audi last year year posted almost a $900 million profit. Audi has reportedly discussed plans to develop a new sports car and possibly a more moderately priced Lamborghini.
Audi officials in Germany did not return calls Tuesday.
Cornell said he was not made privy to Audi's expansion plans. "We're basically trying to start the process," he said, adding that talk of incentives to lure Audi would be "premature." But he acknowledged that Audi would surely seek tax breaks and other inducements before selecting one locale over another.
The bonuses for the United States' newly arrived car manufacturers peeve long-timers like Ford Motor Co., which has a plant in Hapeville. In the Atlanta area since 1909, Ford is searching for a new site. Cornell said the state is considering ways to help Ford, including possible tax breaks, free land or other incentives.
Henlys, a Britishmanufacturer with plants in Georgia, may soon seek the state's tax munificence, too. On June 9, its stock price tumbled 42 percent on warnings of poor profits upcoming. Henlys, which owns the Blue Bird bus company, closed its Iowa plant last year and transferred much of the work to LaFayette. Perdue and associates will visit Henlys in Britain on Thursday.
By DAN CHAPMAN
The Atlanta Journal-Constitution
DUSSELDORF, Germany -- Despite the secrecy surrounding much of Gov. Sonny Perdue's first trade trip, the governor and his staff confirmed Tuesday they had met with Audi AG officials, who may again be considering a multimillion-dollar car plant in North America.
Perdue's packed European itinerary made no mention of the Monday visit with Audi officials in Ingolstadt, about an hour from Munich. Only a cryptic schedule notation -- "business meeting" -- hinted that the governor is positioning Georgia to compete for another highly prized plant.
Perdue spent most of Tuesday with representatives of Georgia's first auto plant acquisition. DaimlerChrysler, which is all but committed to building a van plant near Savannah, sent a private jet to pick up the governor and his coterie of state officials. After lunch in Dusseldorf, Perdue and his staff were given a 90-minute tour of the van plant, a facsimile of one to open along I-16 by 2006.
"It's an impressive facility," Perdue said, marveling at the robots and computers running much of the 550-van-a-day assembly line.
Perdue spent 2 1/2 hours with Audi on Monday attempting to persuade executives that when, or if, they decide to build a plant in North America, Georgia is the place to be.
"We're encouraged by our conversation with Audi," said Glenn Cornell, commissioner of the Georgia Department of Industry, Trade and Tourism. "You have to build a relationship so that when an opportunity comes along, you know who to call."
Georgia trade delegates have been calling this week on some of the biggest names in the automotive world, including Porsche, BMW, the Henlys Group and many parts companies.
Georgia, a late entry into the auto plant mania that swept the Southeast in the 1990s, has now decided it can't afford not to play the game. For proof, Georgia officials say, look no farther than the sprawling plant for Sprinter vans on the outskirts of Dusseldorf, much like the one planned for the Georgia community of Pooler.
"It will set a new standard for mechanical technology," Perdue said. "And I hope it will attract many suppliers to the area. We were able to meet with many of the vendors at lunch today, and we hope to bring some of them to Savannah."
Suppliers deliver thousands of parts each day to the Dusseldorf van plant. Steel tops, undercarriages and side pieces are first welded together by robots in the plant's hangar-sized body shop. The bodies are then hoisted onto conveyor belts and plunged into a "dip bath" that cleans grease and other impurities. Next stop is the assembly area, where the vans' interior components are attached.
Sandy Springs-based UPS is a Sprinter client, and DaimlerChrysler is certain other delivery companies, post offices, ambulance drivers and plumbers will be similarly smitten. Its board is expected next month to officially anoint Pooler.
But it is unlikely DaimlerChrysler would have chosen Georgia without $320 million in tax breaks, land, training and other incentives dangled by former Gov. Roy Barnes and the General Assembly. The proposed $754 million plant is targeted to turn out 110,000 vans a year by the end of the decade. As many as 3,300 people will be hired to build the vans.
Cornell said Tuesday another 10,000 jobs could be created in ancillary industries.
"It'll change the life of that region," he said, adding that people in coastal Georgia are already being trained. "We are going to recruit in inner-city Savannah. We'll target as many minority people as we can. We'll change the lives of so many people."
That is the dream Cornell and Perdue also share for Audi. A subsidiary of Volkswagen AG, Audi has for the last decade repeatedly considered building cars in the United States, Canada or Latin America.
"If the dollar weakens, in the long run, we would need another factory in the NAFTA area," Volkswagen Chairman Ferdinand Piech told the Financial Times Deutschland newspaper two years ago. Since then, the dollar has weakened against the euro, and Audi last year year posted almost a $900 million profit. Audi has reportedly discussed plans to develop a new sports car and possibly a more moderately priced Lamborghini.
Audi officials in Germany did not return calls Tuesday.
Cornell said he was not made privy to Audi's expansion plans. "We're basically trying to start the process," he said, adding that talk of incentives to lure Audi would be "premature." But he acknowledged that Audi would surely seek tax breaks and other inducements before selecting one locale over another.
The bonuses for the United States' newly arrived car manufacturers peeve long-timers like Ford Motor Co., which has a plant in Hapeville. In the Atlanta area since 1909, Ford is searching for a new site. Cornell said the state is considering ways to help Ford, including possible tax breaks, free land or other incentives.
Henlys, a Britishmanufacturer with plants in Georgia, may soon seek the state's tax munificence, too. On June 9, its stock price tumbled 42 percent on warnings of poor profits upcoming. Henlys, which owns the Blue Bird bus company, closed its Iowa plant last year and transferred much of the work to LaFayette. Perdue and associates will visit Henlys in Britain on Thursday.
06-20-2003, 10:23 AM
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Excuse me, US Quality? Re: Say it aint so, If the audi starts having US quality, I'm done buying
I think you refer to the general quality of American cars like the typical Chevy or Ford. There is nothing wrong with US build quality. BMW assembles the X5 in the US along with a host of other cars. (I think Volvo has a big plant in Nova Scotia, Canada.) So why not Audi? This helps the US economy, more jobs, car prices decrease, Audi sales increase! I am all for it.
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