In the Driver's Seat; Mississippi Now a Major Player in the Automotive Industry

JACKSON, Miss., April 30 -- Mississippi grabbed the attention of the world's automotive industry in late 2000 when Nissan North America announced it would locate a $930 million assembly plant just north of Jackson. Such was not merely luck. In 2002, the state again celebrated an automotive coup when Nissan expanded its planned operation, bringing the total project investment to $1.4 billion.

What Nissan saw in Mississippi was an economic environment and business climate well prepared to usher in the state's largest-ever automotive manufacturing operation. Mississippi was chosen over states with well- established automotive track records. While Nissan is Mississippi's first full scale automaker -- bringing with it up to 25 to date supplier companies - - the state was hardly a stranger to automotive manufacturing.

Mississippi has a proven track record for attracting national and global companies that have located in the state a variety of operations including aerospace, communications and polymer science. In the automotive industry, Mississippi has quietly become home to 90 separate automotive-related manufacturing and distribution operations in recent decades. These include operations for such companies as Mazda, Cooper Tire & Rubber, Caterpillar, and Delphi Automotive Systems.

Prior to Nissan, more than 30,000 Mississippians already worked in an automotive-related industry. That number will rise sharply in the years to come.

By 2010, more than 26,000 additional high-wage jobs will be created including those directly employed by the manufacturing facility, suppliers, retailers, service, and support operations needed to accommodate the overall operation.

When Nissan USA President Carlos Ghosn announced Mississippi as the next home of Nissan's manufacturing operations, which will produce the next generation of Nissan's sport utility, minivan and full-sized trucks, he underscored the magnitude of Nissan's investment in Mississippi.

"We're building this vehicle assembly plant to support our growth in North America," Ghosn said. He said the Canton, Mississippi, facility -- which will employ 5,300 workers and assemble 400,000 vehicles per year -- represented Nissan's future in the United States.

Mississippi had landed a major deal, but the subsequent expansion of the facility was not a given. After its announcement to locate in Mississippi, Nissan was considering sites in Canada and Mexico for an additional manufacturing line. Again, state officials went to work, and ultimately, the auto giant made another half billion-dollar investment in Mississippi. That deal, known as Phase II, greatly increased the facility square footage, added 1,300 jobs and increased the projected output from 250,000 to 400,000 vehicles per year. "This announcement further increased our exposure nationwide and worldwide. It is further confirmation that Mississippi is a serious competitor. Other industries are taking notice of the outstanding opportunities here in Mississippi for their company and their employees," said Robert J. Rohrlack, Jr., executive director, Mississippi Development Authority.

Joining Nissan is a number of major supplier companies including Johnson Controls, Calsonic Kansei, Tower Automotive, and Lextron/Visteon. State officials expect even more service and support companies -- referred to as 'second tier and third tier companies' -- to locate operations throughout Mississippi in support of the Nissan project.

Companies that depend on efficient transportation methods find Mississippi an attractive location from which to ship. The state's coastal ports are highly regarded and conveniently located, as are rail and truck routes.

The state of Mississippi made an enormous commitment to Nissan, and it is already paying off. As the state moves forward, it will continue to garner attention from national and international automotive companies and suppliers, who likely already view Mississippi as an emerging player in the automotive industry.

And the state is prepared to discuss similar proposals with companies worldwide. That point is emphatically stated by Governor Musgrove: "The Nissan announcement sends a clear, strong signal that Mississippi can handle a project of any size, and it can compete successfully with anyone."