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Auto Industry Profile
Automotive Industry
Did you know?
Mercedes-Benz, Honda and Hyundai all operate vehicle assembly plants in Alabama. Toyota and International Diesel build engines in Alabama. Over the last 10 years, the automotive industry has invested over $7 billion and created more than 35,000 new jobs 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 12% 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 2,000,000th automobile. There are more than 90 automotive suppliers in Alabama that serve either Honda, Hyundai, or Mercedes. Alabama ranks 6th in U.S. car and light truck production (minivans-pickups-SUVs). Car and truck engine manufacturing in Alabama began in 2001. By 2006, combined engine capacity had risen to 1.2 million engines annually.
Sources: Alabama Development Office Intl. Trade Div., 2006; Automotive News Data Center, 2007; U.S. Bureau of Labor Statistics, 2007, Alabama Automobile Manufacturers Association; Economic Development Partnership of Alabama, 2007; U.S. Dept. of Commerce, Bureau of Economic Analysis, 2005
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A l a b a m a
Trends
VehicleAssembly Employment
15,000 10,000 5,000 0 1997 2005
AnnualVehicleCapacity
800,000 600,000 400,000 200,000 0 1997 2005
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Company
Hyundai Motor Mfg Alabama Alabama Cullman Yutaka Technologies TWB Company KTNA Seohan Auto USA/Seohan Driveshaft USA Yachiyo Manufacturing of Ala. Daewon America Kwang-Sung America Prince Metal Stampings USA Cumberland Plastic Systems Hanil E-Hwa Interior Systems Alto Products Corporation Maxforma Plastics American Trim Richway Transportation Svcs. Topre America Corporation North American Lighting Precoat Metals Hanil E-Hwa Interior Systems Brose Tuscaloosa Hyundai Polytech America Co. Confederate Motor Company Toyota Motor Mfg., Alabama Ai3 Mando America Corporation Cullman Casting Corporation Honda Manufacturing of Ala. Electricfil Automotive Renosol Corporation Teksid Aluminum Components Mobis Alabama Collins & Aikman - Mobis Ogihara America Corp. Bridgewater Interiors HS R&A Co., Ltd. Halla Climate Control SMART Alabama Lear Corporation Daehan Solution Co. Hwashin America Corp. Decoma Systems Integration Plastech Engineered Products
Montgomery Cullman Autauga Jackson Lee St. Clair Lee Tallapoosa Etowah Lee Dallas Escambia Lee Cullman Butler Cullman Colbert Jefferson Dallas Tuscaloosa Barbour Jefferson Madison Tuscaloosa Lee Cullman Talladega Limestone Dallas Talladega Montgomery Montgomery Jefferson Calhoun Coffee Macon Crenshaw Montgomery Lowndes Butler Jefferson Jefferson
2007 Four-cylinder engines for Hyundai and Kia assembly plants Exhaust systems, catalytic converters Laser welding of body parts Interior components Front and rear axles 2006 Roof and spare tire assemblies Suspension bars and coils Plastic hoses and sun visors Stampings; engine/structural parts Injection-molded plastic parts Interior trims; head linings Clutches 2005
522 200 20 20 200 42 170 150 60 35 150 17 100 24 15 80 320 80 240 72 35 100 300 223 170 50 100 75 120 93 515 49 20 250 350 150 400 285 180 400
$270 (Expansion) $50 (New) $6 (New) N.A. (New) $40 (New) $28 (Expansion) N.A. (New) N.A. (New) $25 (Expansion) $5 (New) N.A. (Expansion) $1 (Expansion) $14 (New) $2 (Expansion) $2 (New) $15 (Expansion) $22 (New) $34 (New) $38 (New) $5 (Expansion) $1 (New) $10 (New) $250 (Expansion) $13 (New) $35 (Expansion) $60 (New) $70 (Expansion) $5 (New) $9 (New) $43 (Expansion) $90 (Expansion) $7 (New) $180 (Expansion) $13 (New) $20 (New) $28 (New) $110 (New) $16 (New) $25 (New) $70 (New)
80
400
$3 (New)
$50 (New)
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A l a b a m a
Major Milestones
1991: 1993: 1998: 1999:
In 30 years, Alabamas automotive sector grew from 15 companies to 86. Mercedes-Benz announced its new M-Class would be built in Tuscaloosa, Alabama. Mercedes produced 68,800 units in the first full year of production. 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: 2001:
Mercedes announced a $600 million expansion. 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.
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. Honda produced its one millionth Alabama-made Odyssey.
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