Eastern Railroad Discussion > Alabama get another auto plant !!!!!!!!!

Auto Plant To Bring 5,000 Jobs; Build 300,000 Cars Per Year
September 24, 2009

Alabama Gov. Bob Riley announced Thursday afternoon that a Chinese automaker plans to open an assembly plant near I-65 in Bay Minette.

Hybrid Kinetics Motors plans to build 300,000 hybrid cars per year by the time productions ramps up in 2013. By 2015, they expect that number to increase to 500,000 and then one million vehicles per year by 2018. Vehicles included in the HK line will contain cars, taxis, CUVs, SUVs, trucks and vans.

These vehicles will have a tri-fuel capability with CNG (Compressed NG) as primary fuel, battery-electric drive plus utilizing thermal/brake/stop wasted energy and gasoline for emergency use and battery charge only.

The plant, once funding is in place, will be located on 3,000 acres near I-65 and Highway 287

And what r.r. if any will serve the plant?

B36-7 Wrote:
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> And what r.r. if any will serve the plant?


One that runs on solar power.....

Does anybody else find this announcement to be irritating and depressing?

SCL1517 Wrote:
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> Does anybody else find this announcement to be
> irritating and depressing?

Yes, I do.

DMIR230

Bringing jobs and income to the local economy is irritating and depressing? I'm sure the folks living in the area that stand to benefit would disagree. Or would you rather see people remain unemployed and/or on public assistance?

PE

SCL1517 Wrote:
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> Does anybody else find this announcement to be
> irritating and depressing?

SP_8299 Wrote:
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> Bringing jobs and income to the local economy is
> irritating and depressing? I'm sure the folks
> living in the area that stand to benefit would
> disagree. Or would you rather see people remain
> unemployed and/or on public assistance?
>
> PE
>
> SCL1517 Wrote:
> --------------------------------------------------
> -----
> > Does anybody else find this announcement to be
> > irritating and depressing?


Alabama and South Carolina have acquired several auto and truck plants in recent years. BMW, Mercedes, Force Protection, etc.

Americans don't buy "American" cars anymore, so why is anybody surprised?

SP_8299, you are absolutely correct in your prognostication that the LOCAL (read: Alabama) economy will benefit from this. Surely the landowners, contractors, politicians and potential employees would disagree with my comment. Speaking in macro terms vis-a-vis the American economy as a whole, yes, I do find it irritating and depressing.

SP_8299 Wrote:
-------------------------------------------------------
> Bringing jobs and income to the local economy is
> irritating and depressing? I'm sure the folks
> living in the area that stand to benefit would
> disagree. Or would you rather see people remain
> unemployed and/or on public assistance?
>
> PE
>
> SCL1517 Wrote:
> --------------------------------------------------
> -----
> > Does anybody else find this announcement to be
> > irritating and depressing?


I think he's referring to the fact that it's a CHINESE automaker and not an American automaker. It is strange however that a Chinese company is building in the U.S. rather than vice-versa considering what's been going on in recent years with a lot of American jobs and the chinese.

Kameron Smith

I understand the idea of a Chinese Auto Company building on US soil may upset some folks, and it does me a bit also. But, it's a different economic world we live in, especially in the automotive industry. If this plant provides jobs and creates surrounding industry in the area, so be it, that's a positive thing in the end to me. We need to face it, Ford, GM and Chrysler will NEVER be what they once were. The reasons could be debated forever, but, that fact can't. If I were unemployed in Alabama (instead of Pennsylvania), I'd be banging on the door to at least see what they had to offer. Now, back to the railroad service thing, what RR's are there to service the plant? Possibly an existing shortline, or maybe even a brand new one? Good luck in Alabama to the folks looking for work.

John R

What is depressing about this, well here is my thoughts.
1)It is a Chinese company and not one of the so-called Big 3.
2)That a US car manufacturer can not build an electric car to save their life.
3)That people think that 5000 people will be employed there. It might be 5000 people when you factor in the construction of the plant, but what is the actual number of people when the plant is up and running?
4)The money is going back to China and not staying here. Why, see number 2.

I will leave it at that. It is good news about the potential for new jobs in the area, don't get me wrong there.

DMIR230

B36-7 Wrote:
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> And what r.r. if any will serve the plant?


It looks like the CSX mainline runs relatively close to the site.

Trade and employment issues aside, isn't anyone depressed about the fact that they didn't find it necessary to mention rail access to the site, only its proximity to Interstate highways? Parts in by truck, cars out by truck...now that's depressing.

CShaveRR Wrote:
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> Trade and employment issues aside, isn't anyone
> depressed about the fact that they didn't find it
> necessary to mention rail access to the site, only
> its proximity to Interstate highways? Parts in by
> truck, cars out by truck...now that's depressing.

Exactly. Parts in via container (from overseas) rather than hi-cube boxcars.

SCL1517 Wrote:
-------------------------------------------------------
> CShaveRR Wrote:
> --------------------------------------------------
> -----
> > Trade and employment issues aside, isn't anyone
> > depressed about the fact that they didn't find
> it
> > necessary to mention rail access to the site,
> only
> > its proximity to Interstate highways? Parts in
> by
> > truck, cars out by truck...now that's
> depressing.
>
> Exactly. Parts in via container (from overseas)
> rather than hi-cube boxcars.


maybe.

But, CSX runs through the center of town. I wouldn't be surprised if some of those Chinese manufactured parts arrived by rail

5000 employees and 500,000 cars is a pipedream, it will never happen.

Here's a link to one article about this proposed plant:

http://www.montgomeryadvertiser.com/article/20090924/NEWS/90924031/Baldwin+plant+could+mean+area+jobs

Don't hold your breath waiting for this to happen! Note the quoted section:

"While state officials welcomed HK to Alabama, the project is much less certain than most economic developments that warrant state attention. HK is a start-up company, and it doesn’t have the $1.5 billion it will need to construct the plant in Alabama. [Alabama Development Office director Neal] Wade said Thursday’s announcement should help the company raise funds from investors in China and Hong Kong. The state, however, will not commit any money to the project until HK Motors shows it can afford to build the plant."

So this is a startup company, with no funding, no US dealer network. no US network of natural gas fueling stations. What is the likelihood that this will really succeed?

While we are on a roll with this topic
7 depressing things
-Americans will buy these cars
-Money will go to China
-lot of closed plants that could have been used
-how big 3 automakers got in shape they are in.
-probably workers in this plant will put cars together
with parts made in China, with their cheap labor
-While it will provide jobs, workers won't make big money
-They will make many parts in China, with their enviroment
standards, while American made things are held to different
rules.
3 Good things
-will provide jobs in Alabama
-China is spending some money here
-shows a sign of recovery
holiwood
NS B-line MP 74



Edited 1 time(s). Last edit at 09/24/09 19:44 by holiwood.

> So this is a startup company, with no funding, no
> US dealer network. no US network of natural gas
> fueling stations. What is the likelihood that
> this will really succeed?

Better than the odds of Detroit coming back.

SCL1517 Wrote:
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> Does anybody else find this announcement to be
> irritating and depressing?

Yes. Why are US Corporations unable to meet the challenge of building affordable hybrid vehicles in their own country? But this WILL create jobs, and hopefully what's remaining of the Big Three will someday. . .someday prove to be competitive.