Automotive [Reshoring Tracker] – ThomasNet News

by admin on January 16, 2023

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Automotive manufcturing

Reshoring describes the process of bringing production and manufacturing “back home” or returning it to the country where the company was first established.

In 2021, reshoring in the U.S. surged to a record high, with 261,000 new jobs announced. Contributing factors include increasing labor costs in developing countries, the instability of international trade, supply chain disruptions, risk mitigation, and a renewed focus on American-made products.

The outbreak of COVID-19, which highlighted the risks of overseas manufacturing in terms of supply chains, set the stage for a particularly sudden and sharp rise in reshoring initiatives. As many as 69% of manufacturing and industrial respondents to an August 2020 Thomas Industrial survey said they were likely to bring manufacturing production and sourcing back to North America.

Players in the automotive industry know the impacts of COVID-19 on global supply chains better than most. A 2021 survey conducted by the Economist Intelligence Unit found that 51.7% of supply chain managers in this sector experienced “very significant” disruptions due to the pandemic, representing the highest proportion across six industries.

With this in mind, it’s no surprise that an increasing number of automakers are reshoring some, if not all, of their operations. As well as enabling companies to mitigate unprecedented supply chain disruptions, shifting manufacturing to U.S. soil also promises to drive production line efficiency, improve component quality, reduce shipping time, and create American jobs.

This guide will be regularly updated with the latest news on automotive reshoring. The most recent updates appear at the top of the article.

November 2022

Piston Automotive to Create 204 Jobs at Missouri Facility

Piston Automotive announces a $10 million project to establish operations at a new factory in Wentzville, Missouri. The company expects the development to create 204 jobs and has received support from the Missouri Works program, which assists with company expansion and worker retention.

October 2022

Ford Investing $700 Million at Truck Plant

In October 2022, Ford announced plans to invest $700 million in its Kentucky truck plant in Louisville. Most of the investment will be used to retool machinery at the factory, but the project is also expected to add 500 jobs to the company’s workforce.

September 2022

Bridgestone Americas Announces Expansion of Plant in Tennessee

Bridgestone Americas’ $550 million investment will add 850,000 square feet to its Truck and Bus Radial Tire Plant in Morrison, Tennessee. The project is expected to create 380 jobs and increase the company’s manufacturing workforce to approximately 10,000.

August 2022

Toyota Invests $1.29 Billion in Battery Factory in North Carolina

The Japanese automaker reveals it will invest $1.29 billion in a battery factory in North Carolina, creating 1,750 new jobs and producing enough lithium-ion batteries for 800,000 EVs and hybrid vehicles a year.

June 2022

Hyundai to Create Over 8,000 Jobs in Southeast Georgia

In June, Hyundai announced an investment of more than $5.5 billion on a nearly 3,000-acre site west of Savannah in Bryan County, Georgia. It is reportedly the largest economic development project in Georgia’s history.

May 2022

Ford Launches Separate Divisions for EV and Gas-powered Vehicles

Ford announced it would create two distinct business units under the Ford banner, which will enable the electric side of the business to be more nimble regarding software, connected systems, and other high-tech advancements.

Stellantis, Samsung to Develop EV Battery Plant in Indiana

Stellantis and Samsung SDI announce that they will be investing $2.5 billion to develop an EV battery plant in Kokomo, Indiana. The project will create 1,400 new jobs in Kokomo and the surrounding areas and support Stellantis’ goal to achieve annual sales of five million battery-electric vehicles by 2030.

April 2022

Hyundai Launches EV Production in Alabama

In April 2022, Hyundai announced it would invest $300 million to produce its Santa Fe hybrid in Alabama.

Hyundai Motor Manufacturing Alabama (HMMA) expansions will include additional warehouse space and magnified assembly processes to support EV production.

Toyota Hires Hundreds of Engineers in EV Push

In April 2022, Toyota announced it would add 220 new jobs to its Production Engineering division, which is headquartered in Georgetown, Kentucky, and operates as a “go-between” for its design teams and manufacturing facilities.

Volkswagen Invests $7 Billion in North American Operations

Volkswagen announced it would invest $7 billion to bolster its North American product development and manufacturing operations over the next five years.

The initiative will support the company’s goals for fully electric vehicles to account for a majority of U.S. sales by 2030 and for gasoline-powered vehicles to be phased out of its American lineup by the beginning of the next decade.

March 2022

Daechang Seat Co. Announces Expansion in Alabama

The automotive seat frames manufacturer reveals plans to expand its operations in eastern Alabama with a $23 million investment. Construction on the project, which is expected to create 300 jobs over three years, will begin immediately, and operations are expected to start in early 2023.

January 2022

GM Invests $7 Billion in EV Manufacturing Facilities in Michigan

In January 2022, GM gave the “single largest investment announcement in GM history,” revealing that it would invest $7 billion in four electric vehicle (EV) manufacturing facilities in Michigan. The project, which will create 4000 jobs, includes:

  • Building a new battery factory,
  • Converting an existing factory to focus on electric pick-ups,
  • Upgrading two vehicle assembly plants.

December 2021

Toyota to Build $1.3 Billion Battery Plant in North Carolina

Toyota announced it would build a $1.3 billion electric vehicle battery plant near Greensboro, North Carolina. The plant will employ at least 1,750 people and support the automaker’s goals of accelerating its EV sales.

November 2021

Dr. Schneider Automotive Systems Plans $22.5 Million Mississippi Plant

Dr. Schneider Automotive Systems supplies ventilation systems, window frame trim, intelligent storage systems, center consoles, and mechatronic and electronic components to the likes of Volkswagen, Toyota, Jaguar-Land Rover, and Ferrari.

In November 2021, it announced plans to establish a $22.5 million factory in Baldwyn, Mississippi, which will create up to 400 jobs within the next six years.

June 2020

TSMC to Develop $12 Billion Factory in Arizona

TSMC, the world’s leading chips manufacturer, announced the development of a $12 billion factory in Arizona. This facility will have the capacity to produce 20,000 semiconductor wafers each month and will create more than 1,600 tech jobs in the coming years.

Image Credit: gyn9037 / Shutterstock.com

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