Kentucky Exhibits at Automotive News World Congress
As a 2007 VIP sponsor of the Automotive News World Congress, the Kentucky Cabinet for Economic Development took full advantage of showcasing the state’s capabilities and advantages to a unique collection of the most influential decision makers in the North American automotive industry.
The 31st annual Automotive News World Congress, held January 15-18, 2007, in Dearborn, Michigan, gathered the leaders of the automotive industry together during the North American International Auto Show. New Business Development staff was on hand to tout the state as a prime location for automotive makers and suppliers.
Kentucky is especially attractive for automotive companies – Kentucky ranks third in total light vehicle production and is located in the center of “auto alley,” with four major auto assembly plants within its borders and many others nearby. Ford’s Super-Duty F-series trucks are made in Kentucky, as are Ford Explorers, as well as the nation’s top-selling passenger car, the Toyota Camry, and the top-selling premium sports car, the Chevrolet Corvette.
In addition, nearly 500 automotive suppliers have made their home in Kentucky, employing over 90,000 people.
One recent example of this activity is the location of Nippon Piston Rings to Kentucky this past May. The company announced it would locate its 48.7 million USD facility, NPR Manufacturing Kentucky (NMKY), in Bardstown. The company, which will produce steel piston rings, one of the key automotive engine components, was preliminarily approved for up to $4 million in tax benefits.
Helping to lure even more automotive companies to the bluegrass is Governor Ernie Fletcher’s across-the-board tax modernization plan, enacted in 2005 by the Kentucky legislature. The plan eliminated some corporate taxes and reduced others to make the state even more business-friendly than before. One aspect of the legislation provides tax credits to environmentally friendly companies, which Toyota cited as a major factor in choosing its growing Georgetown plant to begin producing the hybrid Camry.
“Now, the tax structure is making Kentucky even more attractive to us. A new tax modernization law eliminates some taxes and lowers others. It also provides financial incentives to manufacturers that make environmentally friendly products. So it was easy for Toyota to choose Kentucky to produce the first gasoline-electric hybrid Camrys,” said Jim Wiseman, vice president for corporate affairs at Toyota Motor Engineering and Manufacturing North America, Inc.
Apart from tax incentives in Kentucky, many companies are drawn to the state because of its training programs. “The Bluegrass State Skills Corporation is a particularly good program,” said Carl Lay, vice-president of corporate relations at Akebono Corporation. “Our associates undergo pre-employment training for two weeks, and through BSSC’s funding, Kentucky helped make this training possible. Kentucky also helped send some of our associates to Japan for a ’train the trainers’ program.”
In March of this year, Akebono Corporation, which had been making automotive brakes and related components in Kentucky for nearly two decades, chose Elizabethtown for its North American headquarters, bringing its Kentucky workforce to nearly 2,000.
For more information regarding Kentucky’s automotive industry, a profile can be viewed at the Cabinet’s Web site at http://www.thinkkentucky.com/kyedc/pdfs/KY_Auto_Industry.pdf or you may call 800-626-2930. |
