Luxury in Alabama?
What do BASF AG, Degussa AG or Mercedes-Benz all have in common? Firstly, they are all German brands, and secondly, they are all produced in Alabama.
Recently, another luxury automotive brand, ThyssenKrupp AG, has decided to shift production facilities to the U.S. by building a $3.7 billion steel plant near the gulf of mexico. Already, the state of Alabama boasts 50 German industries that employs more than 12,000 workers in industry. So what is so great about AL in the first place?
"We see many similarities between Alabama and Germany," spokesman Christian Koenig said. "Generally speaking, both Germany and Alabama are great places to do business. More specifically, both have a well-trained work force and a strong work ethic." The same spokesperson also mentioned how the strong German prescence in the state helps to draw more companies there. "It becomes a quality-of-life issue, Germans are respected (in Alabama). You can feel it."
Before reading this article, I really had no idea Mercedes (or other German luxury cars) were being manufactured right here in the U.S. Even though a spokesperson commented on how AL was "a great place to do business" I still don't understand what could draw so many foreign car companies into the state. According to the article, Mercedes was the first German company to do so, and perphaps the company's success has drawn in more foreign companies over the years. Also, it is reasonable to assume that producing cars in AL is substantially cheaper than in Germany. What other factors could possibly attribute?
What do BASF AG, Degussa AG or Mercedes-Benz all have in common? Firstly, they are all German brands, and secondly, they are all produced in Alabama.
Recently, another luxury automotive brand, ThyssenKrupp AG, has decided to shift production facilities to the U.S. by building a $3.7 billion steel plant near the gulf of mexico. Already, the state of Alabama boasts 50 German industries that employs more than 12,000 workers in industry. So what is so great about AL in the first place?
"We see many similarities between Alabama and Germany," spokesman Christian Koenig said. "Generally speaking, both Germany and Alabama are great places to do business. More specifically, both have a well-trained work force and a strong work ethic." The same spokesperson also mentioned how the strong German prescence in the state helps to draw more companies there. "It becomes a quality-of-life issue, Germans are respected (in Alabama). You can feel it."
Before reading this article, I really had no idea Mercedes (or other German luxury cars) were being manufactured right here in the U.S. Even though a spokesperson commented on how AL was "a great place to do business" I still don't understand what could draw so many foreign car companies into the state. According to the article, Mercedes was the first German company to do so, and perphaps the company's success has drawn in more foreign companies over the years. Also, it is reasonable to assume that producing cars in AL is substantially cheaper than in Germany. What other factors could possibly attribute?
5 comments:
Some other factors I would guess attribute to Mercedes-Benz coming to the U.S. are lower wage rates or even a greater quality in labor.
No shipping costs brings overall costs down - that helps a lot. :)
Great job!
Raveen and I were discussing your article yesterday, and it is really weird to think that Alabama and Germany have anything in common. Mrs. McDaniel is realyl right when I thought about it. If we don't have to ship cars across an ocean, then the company can save a lot of money
the first thing that sprung to mind while reading your review was: what makes alabama such a great place to do business?
and, after finishing the post, i am left with the same question. what makes one state better for business than another? obviously, if it's agricultural there will be vast differences in which states are beneficial, but for a car company? any ideas?
There's a lot of competition between states on where certain factories will be located. Gov. Doyle is being criticized on some counts by "allowing" automakers to build plants in another state.
more politics... :)
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