Tuesday, May 26, 2009

Trend #1: Following the OEMs Geographically

The base of the automotive industry is regrouping rapidly in the Southeastern United States. States like Georgia, Alabama, Tennessee, Mississippi, and South Carolina have become the new focal points for expansion by domestic automakers and for the introduction of facilities by Asian and European transplants, including Honda, Hyundai, Nissan, and BMW. All are seeking to become competitive in the new economy by finding green fields where land is plentiful and facilities can be built with less worry about hidden environmental dangers or jamming. Even more significant, some of these plants are able to operate as non-union locations, cutting labor costs dramatically and changing the economic equation within the industry.

The automotive industry is also expanding rapidly in the new European Union, especially Eastern Europe (Slovakia, Hungary, and Romania/Poland), as well as in many areas of Asia-Pacific (including Thailand, Malaysia, and China). The automotive industry in India is expected to grow considerably over the next few years as well.

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