Not Just NASCAR: Charlotte Region's Automotive Strength Goes Beyond Racing

CHARLOTTE, N.C., May 26, 2004 -- With more than 90 percent of NASCAR teams based within 50 miles of the Charlotte region, the 16-county area known as Charlotte USA has become the racing capital of North America. Last week's running of the Nextel All-Star Challenge, along with Saturday's Carquest Auto Parts 300 and Sunday's Coca-Cola 600 events, only reinforce the Charlotte region's rise to racing prominence.

But Charlotte USA's horsepower goes beyond the track.

The Charlotte region has become one of the fastest-growing areas in North America for automotive companies, with continued steady expansion expected for years to come as still more automakers, suppliers and motorsports companies move to the region or expand existing operations.

More than 10,000 workers in the Charlotte region are employed in the automotive industry. That's because some of the biggest and best major automotive companies have recognized the advantages of Charlotte USA and now have operations in the region, which encompasses 12 North Carolina and four South Carolina counties with booming Charlotte at its heart.

Charlotte USA operations include DaimlerChrysler, Continental Tire, Freightliner, Michelin, Goodyear, Goodrich and Dana.

The establishment of these companies in Charlotte USA signals a migration from the automobile industry's traditional epicenter in the Great Lakes region to the South. For example, while Michigan's production of motor vehicles has increased 70 percent since 1977 -- from $15.7 billion to $26.6 billion -- North and South Carolina's production has jumped a remarkable 26 times faster.

Overall, the automotive industry in the Southeastern U.S., which includes Charlotte USA, has grown six times faster than the Great Lakes region. Within the Southeast, the Carolinas are among the fastest-growing states for automobile manufacturing. Virtually all of that growth comes from the relocation of production capacity.

A driving force

With more than 250 automotive companies, Charlotte USA clearly has become a hub for the industry. The reasons for this success are clear.

"We got tremendous support from state and local government in the form of resources, worker training and incentives," says Albert Alvarez, General Manager of Cataler North America, a subsidiary of Toyota Motor Corp., which opened its North American headquarters in Charlotte USA's Lincoln County in 2002. "We're also in close proximity to a large international airport, and our location puts us within a day's drive of customers and suppliers."

In addition to Toyota, Cataler supplies catalysts for General Motors, Subaru and Isuzu.

Alvarez added that an educated, employable workforce made Charlotte USA still more attractive to Cataler. Lower labor costs also make doing business in the Charlotte region much more affordable, with annual wages of $41,000 for automotive manufacturing workers in North and South Carolina, compared to $74,000 in Michigan and $63,000 for the entire Great Lakes region.

Through the Charlotte Regional Workforce Development Partnership, companies also have access to custom-made training programs free of charge, providing valuable instruction tailored to specific needs.

Green flag for growth

The Charlotte region has also grown to become the motorsports capital of the U.S. More than 90 percent of NASCAR teams are now based within 50 miles of the Charlotte USA region, according to the Charlotte Regional Partnership (CRP), which promotes economic development in the area.

Motorsports have played a major role in the more than $20 billion in investment and in the creation of more than 200,000 jobs by companies in Charlotte USA over the last decade.

"With more than 400 motorsports companies and some of racing's largest and most-prestigious events, Charlotte USA has become the hub of America's booming racing industry," says Michael Almond, president and CEO of the CRP. "And, with the University of North Carolina at Charlotte's multidisciplinary program in motorsports and automotive engineering, we're training the next generation of racing team members, researchers and owners in this increasingly technological sport right here at home."

In fact, UNC Charlotte now has more than 100 undergraduate students enrolled in the program, which offers a bachelor's degree in mechanical engineering and has generated more than $2.25 million in external research in racing technology.

In addition to Lowe's Motor Speedway, which hosts the Coca-Cola 600, UAW-GM 500, The Nextel Challenge (formerly The Winston) and several other major NASCAR events, the Charlotte region is home to two state-of-the-art wind-tunnel facilities and NASCAR's Research and Development Site.

The economic impact of racing in North Carolina tops $2 billion, making it one of the state's most lucrative industries, according to the N.C. Motorsports Association. The bulk of that revenue is generated in the Charlotte region.

"This is more than just tourism-related revenue generated through events," Almond says. "This is a year-round industry of manufacturers, suppliers, transporters, etc., that fuels our region's larger automobile industry as a whole."