Posted on 10/20/2006 2:53:52 PM PDT by Dark Skies
Officials from Georgia and Korea hailed the development of Kia Motors Corp.'s $1.2 billion auto plant in Troup County as an economic boon for the Southeast as they turned over ceremonial shovels full of sand Friday near the Georgia-Alabama line.
"We are looking forward to many years of cooperation as Kia's new plant in West Point creates thousands of jobs and sets the standard for the automotive industry," Georgia Gov. Sonny Perdue said.
Although the ceremony was celebrated as a groundbreaking, the 2,000-acre, red clay site was cleared months ago. On the hillsides surrounding the area, earth moving equipment was in constant motion as a crowd of about 600 gathered Friday beneath a chilly wind.
Kia corporate leaders mingled with elected officials and citizens from Georgia and Alabama beneath two large temporary buildings topped with tent-like roofs.
The long-awaited step forward on the auto plant was seen as a sign of hope and opportunity in a rural region along the Chattahoochee River that has suffered from the decline of the textile industry.
Perdue flew to Seoul, South Korea, in March to sign off on the deal to develop the plant. The groundbreaking ceremony originally was scheduled for April.
But the chairman of the Hyundai Group, which includes Kia, became embroiled in an embezzlement scandal, raising fears that his legal problems might snarl the company's expansion plans.
Group Chairman Chung Mong-koo, 68, was jailed on embezzlement and breach of trust charges related to a $108.4 million fund that prosecutors suspect was used to pay lobbyists to seek government favors. He was recently released, and attended Friday's ceremony.
"Management and staff at Kia have enthusiastically worked to bring the company to a point where it is today, one of the fastest growing players in the global auto sector," he said. "The establishment of the U.S. plant will serve as a springboard for us to achieve our ultimate goal of firmly establishing Kia as a truly world class global automaker."
He has said previously that the West Point plant would produce cars for North America and South and Central America.
Georgia's Kia plant is expected to create 2,893 jobs directly and 2,600 more at five nearby plants that supply parts. Cars should begin rolling off the assembly line in 2009.
Bert Brantley, communications manager for the Georgia Department of Economic Development, said the plant will have a $4 billion annual economic impact on the surrounding area, including communities in Georgia and Alabama.
Its development in Georgia was at least partly linked to an existing Hyundai plant in Montgomery, Ala.
"The company will draw from a wide area," Brantley said. "We wouldn't have gotten this without that Hyundai plant in Montgomery. It's a positive for the whole Southeast. The Southeast is becoming an automotive manufacturing center. Everybody is benefiting."
Officials noted that Alabamans who come to work at plant will pay Georgia income and sales taxes.
Sandra Thornton, a West Point city councilwoman, said, "It's a great day. History is being made in West Point. It's going to benefit everybody far and wide."
She added, "We're hearing news about businesses coming from everywhere -- banks and a couple of hotels."
The timing of the groundbreaking, just weeks before the November general election, couldn't be better for Perdue, a Republican seeking a second term. His office says the timing was purely coincidental and based on the chairman's availability.
State and local officials had cobbled together a $258 million incentive package to lure Kia to Georgia, which was reeling from plans to shutter Ford Motor Co. and General Motors plants in the state.
West Point and Troup County are offering up millions in property tax abatements over 15 years.
Kia has been expanding aggressively around the world.
Alex Fedorak, director of public relations for Kia Motors of America, said Kia has just opened a plant in Slovakia that should be producing cars by year's end. In the U.S., he said, Kia will open a new headquarters in Irvine, Calif., in January, with a design center. It will focus strictly on developing cars and SUVs for the U.S. market.
He said the Hyundai Motor Group is the sixth largest auto maker in the world.
Kia's are the cheap cars here in the U.S.? In Europe last summer I saw a Kia luxury (or high class, anyway) automobile @ $35K+. It's the reputation earned by marketing, stupid!
A moment of silence for Willie Green, please . . .
Well I am on my second Kia (optima) They are a great car no complaints.
The invisible hand at work.
Mercedes in Alabama, Saturn in Tennessee only to mention a couple. When will these car companies realize we in the South aren't smart enough to make cars. (Sarcasm)
I drove to Atlanta this week to visit my brother and saw plenty of KIA's on the expressway. And given that the expressway runs at 80 mph...I was surprised that the KIA's were hanging in there with the rest of the crowd.
I take it this is not a union plant.
LOL!
I was in the thread when JimRob tired of WG's BS and booted him.
Jim's next post was...Let me be the first to say it......Free Willie.
I laughed till I fell out of my chair.
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