Kia’s Got Georgia on Its Mind
Georgia’s automotive sector has been hit with some bad news in recent months. Only in November General Motors announced that it would cut thousands of jobs with the closure of the Doraville manufacturing plant, no later than 2008, followed up more recently with similar news from Ford Motor Company regarding its Hapeville facility which could shut down as early as August after the once-popular Taurus finishes production.
In real terms, shutting down the Doraville plant, which incidentally was retrofitted for van production to the tune of $150 million USD only three years ago, means the loss of about 3,000 jobs and a 10 percent reduction in local city taxes - approximately $800,000 to $1 million USD in property taxes and fees. And what about Hapeville? Despite Georgia offering Ford $88 million USD in incentives to expand its Hapeville plant, 2,100 workers are now facing unemployment. And that’s only the auto sector.
Adding insult to injury is what the Atlanta Journal-Constitution called “a crippling combination of bad economic news for Atlanta and Georgia”, which included the sale of Georgia-Pacific and Scientific-Atlanta, cuts at Bellsouth and the bankruptcy announcement by longtime Atlanta employer Delta Air Lines.
While there have been attempts by local politician Vernon Jones to save the plants, Georgia is being forced to focus on the future, made a great deal brighter by Kia Motors and its announcement that its first plant outside of South Korea would be built in West Point, Troup County.
The world’s fastest growing nameplate is enjoying great success throughout the United States and Canada, thanks to the value proposition its vehicles offer cash-strapped, quality conscious North American consumers.
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