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For Mike Grundmann, director of automotive, aerospace and advanced manufacturing at the Georgia Department of Economic Development, it’s really been no surprise that foreign companies have invested $2.8 billion in Georgia’s automotive sector.
The state is in a strategic location as a center for assembly and manufacturing, its got a quality workforce and has developed a reputation for innovation in the industry, he told Global Atlanta.
Earlier this month, the department along with affiliated organizations announced the winners of its inaugural Georgia Automotive Awards in five categories “to honor them for the contributions they have made to build a robust automotive ecosystem in the state.”
Novelis inc. received the automotive innovation award; Toyo Tire U.S.A. Corp., the automotive supplier of the year award; Hitachi Automotive Systems Americas Inc., the community
impact award; Kia Motors Manufacturing Georgia Inc., the Georgia automotive company of the year and J. Randy Jackson, Georgia automotive leader of the year.
Mr. Grundmann stressed that the recipient companies had all expanded their operations in the state since settling here. As an example, he pointed to Toyo Tire, which arrived in 2004 and since then has expanded its facility several times to 3 million square feet under one roof representing an investment of more than $1 billion locally.
“It’s worth pointing out,” Mr. Grundmann added, “that they grew during the recession. The department looks for automotive suppliers that show strong growth and have an impact on the health of the state.”
He praised Novelis for developing sophisticated aluminum for Jaguar, Land Rover and Ford vehicles enabling them to meet evolving fuel efficiency and greenhouse gas emissions standards by reducing their weight without compromising their safety or strength.
Monroe-based Hitachi employs 1,000 people and manufactures valve timing systems, propeller shafts and power steering systems. It was honored for its community involvement through the F.I.S.H. (Faith in Serving Humanity) program, which provides food for organizations to combat child hunger in Walton County, as well as being active in the Communities in Schools program.
The Communities in School program works to ensure that at-risk children remain in school by providing one-on-one relationships with caring adults, a safe place to grow and learn, proper nutrition and exposure to marketable skills to use upon graduation.
Kia Motors Manufacturing Inc. was the hands down winner of automotive company of the year award. The company “exemplifies all relevant factors as outlined in the other awards and demonstrates overall industry leadership within the state,” according to a news release from the department.
That said the company earlier this year celebrated the manufacture of its 2-millionth car, and it continues to be a community supporter having donated $2.1 million toward STEM education in local elementary schools.
It also has made a $3.5 million contribution to establish THINC, a new college and career academy at West Georgia Technical College’s LaGrange campus.
A key figure behind Kia’s success in Georgia was J. Randy Jackson, the company’s chief administrative officer. The award was conferred posthumously and his memory honored for his support of STEM education, workforce development and the auto industry generally within the state.
While praising the past accomplishments of these companies, Mr. Grundmann made it evident that he has his eye on the future and anticipates more foreign investment in the state’s auto sector.
He cited the success of Georgia’s Quick Start in preparing the state’s workforce and credited it with attracting the Chinese company Sentury Tire. He anticipates more Chinese investment, saying “We’re always recruiting from China. A lot of Chinese companies are interested in establishing operations.”
He also mentioned continued interest from Korean and Japanese companies. The $500 million investment of Volvo Cars of North America LLC for a plant 30 miles northwest of Charleston, S.C., is an incentive for suppliers to move to Georgia with easy access to the plant, he said.
As an example, he referred to the $35 million investment announced in January by LINDE + WIEMANN GmbH KG, a German manufacturer of structural steel systems to automotive original equipment manufacturers in Europe, Asia and Africa.
Aside from its global connections, it will benefit from its location in Hart County, which borders on South Carolina and is in fairly easy reach of Charleston.
Georgia’s future role on the cutting edge of automotive innovation, he added, is secured by the presence of the Panasonic Automotive Innovation Center near the Georgia Institute of Technology’s campus that is to serve as an incubator for next-generation automotive infotainment technologies.
Georgia also will benefit from the presence of the AT&T Drive Studio, also in Midtown, where the wireless carrier is to develop and test connected car technologies such as internet connectivity remote diagnostics and over-the-air software updates.
“Georgia is rich in innovation and at the epicenter of talent and research,” he added. “The state has an autonomous eco center that may now be its most valued asset.”
