Shifting the Center of Automotive Manufacturing
As foreign investment increases, the Southeastern United States is on its way to becoming the next automotive manufacturing capital.
By Pearl Gabel


Ever since Aaron Whitfield lost his job as a hi-lo driver at a Michigan Chrysler plant, he has been preparing to move to Tennessee, where he believes that the jobs are more plentiful. Whitfield says that that he is the product of Chrysler’s restructuring and downsizing of its U.S. plants—in February, the automaker announced that it will lay off 13,000 people, and last month the company signed a deal to manufacture cars in China for potential export to the U.S. In a memo circulated to employees in July (and reported by The Detroit News), Chrysler said it beat its target for job reductions, eliminating 1,100 white-collared workers and 6,000 blue-collared workers in the U.S. and Canada—from the executive offices to the factory floor.


As American automakers restructure, foreign transplants like Toyota and Nissan are emerging as new American manufacturers. However, instead of locating their facilities in the traditional American auto belt, these foreign-owned companies are grouping around suppliers (and each other) in the Southeastern U.S.

Whitfield’s move from Detroit to Tennessee is not merely a coincidence. “It’s time to go somewhere where the weather is nice and it’s cheaper to live,â€