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From yesterdays Milwaukee Journal. What do you think?
Chinese automaker to use Oklahoma as a base for reviving the MG
By TIM TALLEY
Associated Press
Posted: July 11, 2006
Oklahoma City – China’s oldest carmaker plans to build an assembly plant in southern Oklahoma to help revive a historic English automotive brand – the MG.Advertisement
Nanjing Automobile Corp. will locate a manufacturing facility and parts distribution center at the Ardmore Industrial Airpark, officials familiar with the project said Tuesday. Oklahoma City will be the site of the company’s global headquarters for sales, marketing and distribution outside of Asia and a research and development facility will be housed at the University of Oklahoma in Norman.
The Oklahoma operations are part of a global business strategy by the newly formed MG Motors, which also plans to build vehicles in Nanjing, China, the automobile corporation’s home, as well as resume production at the Longbridge assembly plant near Birmingham, England.
“We’re positioning ourselves as a global car,” said Duke T. Hale, the new company’s president and chief executive. “Our vision is to try to create a world-class car in a world-class company.”
A formal announcement was planned today in Oklahoma City.
Gov. Brad Henry said plans to build an updated version of the legendary sports car in Oklahoma are a testament to the state’s pro-business climate and highly skilled work force.
“This is a major investment in Oklahoma that will mean hundreds of good-paying jobs,” Henry said. At full capacity, MG Motors will create about 550 jobs in Oklahoma with an estimated payroll exceeding $30 million.
The announcement comes less than five months after General Motors Corp. closed its Oklahoma City assembly plant, the first of 12 facilities the company plans to shutter by 2008 as it struggles to survive and bring production in line with market demand. The Oklahoma City plant produced sport utility vehicles such as the Chevrolet Trailblazer EXT and employed 2,200 hourly and 200 salaried workers.
High fuel prices have strained sales for domestic automakers, which traditionally have been stronger in pickup trucks and SUVs than in cars. But rising gas costs have benefited manufacturers of smaller cars, such as Toyota Motor Corp., which last month credited its fuel-efficient lineup for much of its 14.4% sales increase over June 2005.
Hale described Oklahoma as “a well-kept secret for commerce and business.”
He said the state’s incentive package “was pretty darn aggressive” when compared with other states and included the state’s Quality Jobs Program that offers tax breaks for job creation and a new business development fund.
“The work force situation is pretty favorable to us,” he said. Company officials were also impressed with the area’s low cost of living and its quality of life.
“The city of Ardmore was tremendously cooperative,” said Hale, a former executive at Volvo, Mazda, Isuzu and Lotus.
Wes Stucky, president and CEO of the Ardmore Chamber of Commerce, said the Ardmore Airpark offers the infrastructure needed to ship cars and parts by rail, truck and air. Hale said the airport’s runway is capable of accommodating Boeing 747s.
The cost of the proposed 300,000-square-foot assembly plant and distribution facility is not yet known, but the total capital investment in reviving the MG exceeds $2 billion, including MG’s new operations in China, reopening the facility in England and building new facilities in Oklahoma.
Nanjing acquired ownership of MG last year and plans to reintroduce the cars in China and Europe before the first MG rolls off the assembly line in Ardmore in the third quarter of 2008. The company expects to start construction early next year.
MG Motors plans to offer a full range of sports cars and sedans.
The Oklahoma plant will produce a newly designed TF Coupe. The mid-engined, rear-wheel-drive two-seater was originally designed by MG’s former owners, but it was never built.
From the July 12, 2006 editions of the Milwaukee Journal Sentinel
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I guess as long as they bring a few jobs to the country as opposed to taking jobs away it is good. Why wouldn’t an American car company have the idea? Of course Duke T. Hale, the president of the company doesn’t exactly sound like a Chinese name.
I agree that bringing jobs in is always a good idea. I’m just wondering if this is a project that can work or a way to suck cash out of Oklahoma.
“the state’s incentive package “was pretty darn aggressive” when compared with other states and included the state’s Quality Jobs Program that offers tax breaks for job creation and a new business development fund.”
Another jobs plan that costs more than it delivers? Time will tell, I suppose.
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