Road Trip To Infiniti And Beyond?

I’m leaving town for a bit today.  I’m sorry, but whatever media event you folks manage to conjure up today, you won’t manage to get an immediate response no matter how many times you spam me with it.  Though I’m still marveling at the genius of the Tea Party Patriots wanting to storm Senate offices today to protest votes that haven’t even happened yet by their biggest elective successes Pat Toomey and Marco Rubio.  Someone needs some strategic vision consultants stat.  Anyway…

So while I’m on the road with whatever subcompact Hertz randomly decides is equivalent to a “full size” car, I’ll leave you to discuss this potential economic development nugget.  Infiniti is looking for a site to build a North American assembly plant:

Infiniti President Johan de Nysschen confirmed to the Wall  Street Journal that Nissan is considering a standalone production  facility for its luxury division somewhere in North America. De Nysschen said  Infiniti is considering locations in the United States, Canada and Mexico, but  declined to give further details.

De Nysschen said Nissan hasn’t completely ruled out adding Infiniti production  at one of its existing North American plants, but told the WSJ “the  question is how much capacity you could build.”

If given the green  light, Infiniti’s North American plant could be up and running as soon as 2017.  The plant, which would carry a price tag of about $2 billion, would have the  capacity to produce 100,000 vehicles per year and create 2,000 jobs.

Nissan currently builds cars outside of Nashville Tennessee, which would again give Georgia the potential for the “adjoining state” strategy that worked well with Kia given the proximity to Hyundai’s plant near Montgomery.  Nissan also currently has a plant in Canton Mississippi and another North American Plant in Mexico.

If Infiniti chooses Georgia for their next plant I won’t guarantee I’ll be driving one on my next road trip, but I will note that we’ve added one Kia Sorento to the family since West Point opened its plant.  So, that’s the best incentive I can offer for Nissan.  See the Governor if you want that topped by $400 Million or so.

 

4 comments

  1. sockpuppet says:

    I say that it is better to develop our infrastructure and human capital to create our own industry (which is what we used to do) instead of trying to attract jobs from somewhere else, especially from foreign countries. Joining the race with Mississippi, Alabama, South Carolina, Tennessee etc. for foreign auto and other manufacturing jobs is good, but growing and attracting entrepreneurs capable of creating the next Microsoft in our own state (because the current Microsoft is having real problems … anyone see Windows 8?) or the next big energy or consumer products manufacturing company is better.

    Imagine what that $400 million in incentives could do if half of it was spent on a venture capital fund, and the other half was spent on making Kennesaw State’s business school into a top flight investment banking/finance school. Or if it were given to our rural EMCs to let them see what they could do on the alternative energy front (windmills, solar panels, sugarcane ethanol, biomass, you name it!) with it. Or for that matter, why don’t we use it to deepen the Savannah port and to increase our rail and airport (and not just at Hartsfield!) freight transportation capacity.

    Honestly, manufacturing is now pretty much a race to the bottom, as these conglomerates are just looking for whoever can get it done the cheapest. It may be Georgia or Mississippi today, but 15-20 years from now it might be Belize, Bangladesh or somewhere. It isn’t sustainable, and it also may not necessarily even produce the number of high paying jobs that we want (need). You don’t have to be an Obama “the creative class will make a newer, cleaner and more just economy!” sycophant to ask whether we need to be more forward-looking in our economic policy.

    • MS is doing better than you may imagine. Their server products are still holding market share quite nicely, and SharePoint continues to be a rather popular product. I’ve heard varying opinions of Windows 8. One opinion I heard recently is that people are just adopting it slowly – a type of resistance to change – but that it will catch on and become rather popular. Only time will tell, but I’ve seen more innovation from MS lately than I have from Apple. (And I’m a Mac user at home. I’m fairly disappointed in the “improvements” that Apple has made to OSX over the past couple of iterations.) I don’t see Ubuntu or any other Linux flavor taking market share anytime soon. Which leaves us with MS, Apple, and the possibility that Google manages to create a product that people love enough to use as a desktop based OS.

      Remember – the products used in the Enterprise are likely to be what people use at home due to their familiarity with them. Corporate America runs on Exchange, MS SQL, Sharepoint, Word, Excel, PowerPoint, etc. (Speaking of which, MS also has a very nice offering with Office 365 if you haven’t tried it yet.)

  2. saltycracker says:

    Would agree it is preferable to use public monies making Georgia a place to do business from by improved infrastructure, available resources, preferred living/working conditions and a simplified overall tax structure.

    What we do today is run an extraordinarily inefficient political and lobbyist money machine of public money to laser in for too few winners.

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