Swedish giant Volvo is considering Georgia, along with other Southern states, for a possible new manufacturing plant, The Atlanta Journal-Constitution has learned.
It is the second major automotive plant Georgia is pursuing. The AJC previously reported that Georgia has also been in the mix with other states and potentially European nations for a Jaguar Land Rover factory.
No deals have been signed with Volvo or U.K.-based Jaguar Land Rover, and decisions could be weeks away, a person with knowledge of the situation told the AJC.
A spokeswoman for the Georgia Department of Economic Development had no immediate comment, and Volvo declined to comment.
U.S. automaking has shifted south for decades, thanks in part to lower business costs, a largely non-unionized workforce and generous incentives, economic development recruiters say.
Manufacturing centers — auto plants in particular — are coveted for the jobs they create and the potential for thousands more at suppliers.
The possible auto plant projects come as auto sales have rebounded from the recession. If Georgia is successful in wooing either company, it would cap and already active period for the industry in the state.
Mercedes recently announced the move of its U.S. headquarters from New Jersey to metro Atlanta. Porsche is expected to soon fully open its new North American hub near Hartsfield-Jackson International Airport.
Georgia was reportedly in the running for a Sprinter van facility. South Carolina is expected to announce this week an expansion of an existing Sprinter van factory near Charleston.
South Carolina is also said to be in the running for the Volvo deal. Jaguar Land Rover, too, is reportedly weighing Southern states and, according to reports in Britain, may favor a site in Europe over North America.
Jaguar Land Rover recently opened a factory in China, is adding production in the United Kingdom and is building another factory in Brazil.
Gov. Nathan Deal is making behind-the-scenes moves to woo big manufacturers.
The governor’s midyear budget plan, which he signed into law last month, pumps tens of millions of new dollars into grant programs the state uses to seal deals with corporate prospects.
Recently he told a key farmers group their resistance last year to his still-pending plan to weaken an independent state environmental agency could have jeopardized “the largest economic development project in the state since 2006.” That was the same year Georgia landed the Kia Motors plant and thousands of manufacturing jobs.
On Wednesday, lawmakers heard testimony about a Deal-backed bill that would allow state agencies to buy some cars made by companies with Georgia plants without a competitive bidding process. Kia is Georgia’s only major auto manufacturer, but the governor’s spokesman has said it would apply to other companies that move manufacturing to the state.
The measure, House Bill 259, was unanimously approved by a House Committee after Rep. Terry Rogers, the sponsor, argued it would give more flexibility to Georgia’s purchasing agents - and give a boost to in-state manufacturers.
“It allows us to remain loyal to the people who come to Georgia and invest in automobiles.”
Staff writer Greg Bluestein contributed to this report.
About the Author
