South provides global appeal for foreign auto makers
BIRMINGHAM, Alabama (CNN) -- Detroit, Michigan, is often thought of as the automaker capital of the country, but increasingly, foreign auto plants are heading south, to a region known for more than its charm.
Toyota's plant in Georgetown, Kentucky, is as big as 156 football fields.
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Almost every foreign auto factory that's opened since the '90s has sprouted below the Mason-Dixon Line. Two of the three auto plants under construction also are in the South.
Plants typically establish their roots in what is known as the auto corridor -- a roughly 200-mile-wide stretch that runs from Michigan to Alabama.
"The northern end is more heavily dominated by the traditional Detroit-base assemblers and their supplier base, and then the foreign automakers and their supplier base tend to pull a little further south," said Thomas Klier, a senior economist with the Federal Reserve Bank of Chicago who specializes in the auto industry. Check out auto plants across the corridor »
So what's behind the South's charm? It has a lot to do with the people, experts say.
"If you don't have people, you don't have economic development," said Michael Randle, president and publisher of Southern Business & Development. "People drive economic development and that's why the South has gone from being dirt poor 50 years ago to leading this country's economy."
The South's population is growing much faster than the Midwest, which is home to the Big Three: Chrysler, Ford and GM. Between 2000 and 2030, the South's population is expected to increase by about 43 percent, while less than 10 percent growth is expected in the Midwest, according the U.S. Census Bureau. See how the United States is expected to grow »
But it's not just the quantity of the people that matters. The quality of the work force was a big factor in Toyota's recent decision to build a plant near Tupelo, Mississippi, according Dennis Cuneo, formerly Toyota's senior vice president and now an adviser to the company. Video Watch how Toyota hopefuls are already preparing for jobs »
Northern Mississippi has been hit hard by the closing of furniture factories, leaving highly skilled workers looking for jobs. Those workers have the mentality the automobile makers want, Randle said. If it's broken, they are going to fix it, he said.
http://edition.cnn.com/2007/US/11/01/auto.south/index.htmlThat is why the old Southern Rethug boys are blocking the bailout.