What’s behind the shift in auto manufacturing to the Southeast U.S.
The Southern U.S. has emerged as an important hub for automobile manufacturing and distribution, attracting global automakers and supporting a large network of suppliers and related industries, and the trend is growing.
Alabama, Georgia, Tennessee, South Carolina and Mississippi are all part of this growing trend. In fact, Georgia is perhaps the biggest recent beneficiary of that shift, with the Hyundai Metaplant pumping out electric vehicles near Savannah and Rivian expecting to soon start vertical construction on its EV plant east of Atlanta this year.
Industry growth and investment
A variety of automakers from the American South have experienced rapid growth and have invested heavily over the past two decades.
Often, competitive incentives offered by state governments, state laws that are less friendly to labor unions than many northern states and access to major transportation networks are among the reasons behind the industry’s rise in the South.
Recent years have seen increased focus on EVs and battery manufacturing, with several new projects and expansions announced across the Southeast.
Economic impact
Another reason for the South’s growing manufacturing footprint: a skilled and ready workforce. For example, Kia builds vehicles like the Sorento, Sportage and the all-new 2026 Kia Telluride in West Point in Georgia near the Alabama border. The Kia factory opened in 2009, and since that time, dozens of suppliers have opened in the Peach State.
The Hyundai Metaplant is known as Georgia’s largest-ever economic development deal. The $7.6 billion factory opened in late 2024 and is currently building Ioniq 5 and Ioniq 9 EVs. Hyundai has said it’ll also build Kia and Genesis models. Late last year, Hyundai announced it will expand production into hybrids, hedging its bets a bit as EV adoption in the U.S. has not kept pace with Europe and many countries in Asia.
Hyundai has said it plans to employ 8,100 between the auto plant and an adjoining battery facility on the site. In return, state and local governments offered Hyundai more than $2 billion in incentives, including tax breaks, worker training and other perks, to pick Georgia.
Like the Kia plant, Hyundai’s facility has attracted dozens of suppliers to coastal Georgia.
The newly reintroduced Scout Motors will manufacture its vehicles in South Carolina. These jobs require a certain level of skill in addition to a workforce that excels at hands-on labor.
Nissan builds the Murano, Rogue, Pathfinder and Infiniti QX60 in Smyrna, Tennessee. That one plant employs 7,300 people and represents an $8.9 billion investment. That’s quite a lot of money to drop on the local economy over the years. Nissan’s powertrain manufacturing facility in Decherd, Tennessee, is responsible for another 1,800 jobs.
The sector has spurred the development of supplier parks, technical training programs and research institutions, further strengthening the region’s industrial ecosystem. The presence of global automakers has also fostered export growth, with vehicles and parts shipped worldwide from Southeastern ports.
Nissan is an example of how this can also directly benefit new car shoppers, not just local workers. Recent tariffs have both hurt and helped Nissan vehicles. For example, the all-electric Nissan Leaf used to be built in Tennessee but is now assembled in Japan. That certainly hurt Nissan’s bottom line, especially given that the price of the all-new Leaf has remained right around $30,000, a low price for any new all-electric car.
On the other hand, Nissan was able to reduce the price of both the Pathfinder and Rogue since both of those are built in the U.S. and both source engines from Nissan’s Decherd plant in East Tennessee. In fact, Nissan has six new car models with a starting price of under $30,000. This is the direct result of the types of jobs required by modern-day car building.
Engines are tested, processes are improved, and sophisticated, robot-assisted, computer-aided machines are used hour after hour. In one workstation, Nissan demonstrated how they run freshly cast engine blocks through a CT scan machine to inspect even the most minor flaws in the manufacturing process. Of course, this helps improve quality, but there’s another benefit beyond the actual car Nissan is building. This kind of operation takes skill, and many of those skills can transfer to other occupations.
Challenges and future outlook
One often overlooked benefit of the new era of manufacturing in the South is the continuous training available to workers at some of these factories.
As part of the company’s incentive package, Hyundai has promised to provide jobs with an average wage of $58,105. That’s on par with the average wage of the metro Savannah area, according to the Bureau of Labor Statistics.
In Smyrna, Tennessee, Nissan pays as much as $35.49 per hour, or more than $70,000 per year at the top end. Many employees we spoke to had between 10 and 30 years of continuous employment.
While the industry faces challenges such as supply chain disruptions, global competition and the transition to electric vehicles, the Southeast remains well-positioned for continued growth. Investments in workforce development and infrastructure, combined with ongoing commitments from automakers, suggest a positive outlook for the automotive sector in the Southern U.S.
Brian Moody is a senior editor of Kelley Blue Book and Autotrader, which are part of Cox Automotive. He is an automotive expert specializing in transportation, car shopping, electric cars, in-car technology and future vehicles.
The Steering Column is a weekly consumer auto column from Cox Automotive. Cox Automotive and The Atlanta Journal-Constitution are owned by parent company, Atlanta-based Cox Enterprises.
