U.S. Auto Component Manufacturing Brings $8.8 Billion in Capital Spending

Researched by Industrial Info Resources (Sugar Land, Texas)--Automotive components are in high demand as the auto industry continues to expand, buoyed by the production of electric, hybrid and internal combustion engine (ICE) vehicles. Industrial Info is tracking $8.8 billion worth of capital-spending projects in the U.S. that are geared toward auto component manufacturing.

The capital investment includes three projects from automaker Honda Motor Company (NYSE:HMC) (Tokyo, Japan) that are part of an approximately $700 million investment to retool its automotive plants in Ohio. Honda's $250 million project at its Marysville Auto Plant (MAP) entails performing upgrades and modifications to existing production equipment at the 3.6 million-square-foot plant, to assemble battery cases and modules that will be installed in electric vehicles (EVs). The project will make MAP Honda's first plant transition to EV production. Construction kicked off in mid-2023 and is expected to be completed in mid-2025. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for the related project report and here for a full list of Honda's capital auto component-manufacturing projects in the U.S.

Another major automaker, Stellantis NV (NYSE:STLA) (Hoofddorp, Netherlands), is retooling its KTP transmission plant in Kokomo, Indiana, to manufacture electric drive modules (EDM)--a single unit that combines an EV's motor, gearbox, and power electronics. Stellantis aims for 50% of passenger car and light-duty truck sales in the U.S. to be EVs by 2030. Click here to read more information on the project, which is expected to wrap up next year.

Despite the EV revolution, automakers still are investing in projects aimed at production of internal combustion engine (ICE) vehicles. Ford Motor Company (NYSE:F) (Dearborn, Michigan) is investing $160 million to install new equipment and supporting equipment and systems at its Sharonville Transmission Plant in Ohio, to continue assembling 10R 10-speed automatic transmissions and current gear families used in rear-wheel-drive vehicles. Construction kicked off this summer and is expected to be completed in January 2025. Subscribers can click here to read the detailed project report.

This project aimed at producing ICE transmissions comes as Ford said in August that it plans to cut its annual mix of capital expenditures devoted to EVs from 40% to 30%, amid challenges facing the U.S. EV market. For more information, see August 23, 2024, article - Ford Becomes Latest Automaker to Scale Back EV Production.

Traditional automotive parts suppliers also are investing in manufacturing facilities. Magna International Incorporated (NYSE:MGA) (Aurora, Ontario) is renovating a former animal shelter and pet adoption center in Auburn Hills, Michigan, to become the exclusive supplier of seating for General Motors' (NYSE:GM ) (GM) (Detroit, Michigan) EVs. The $100 million project is expected to wrap up next month. Click here to read more information.

Sewon America Incorporated (LaGrange, Georgia), with Evans General Contractors (Savannah, Georgia), is building a grassroot automotive component plant in Rincon, Georgia, to produce EV body parts. Sewon America is a subsidiary of SEWON Group (South Korea). Subscribers can click here to read more information on the project, which is expected to wrap up around the end of the year.

One of the plants expected to receive the parts is Hyundai Motor Group's (Seoul, South Korea) EV assembly plant under construction in nearby Ellabell, which is expected to begin production in 2025 (see project report.)

Hyundai and GM recently signed a memorandum of understanding (MOU) to "explore future collaboration across key strategic areas," including vehicle production and clean-energy technologies. For more information, see September 13, 2024, article - GM, Hyundai to Explore Joint Development and Production of Vehicles, Clean-Energy Technologies.

Robert Bosch GmbH (Gerlingen, Germany), through its subsidiary ZF Transmissions Gray Court LLC, is performing a $500 million expansion of its Gray Court Automatic Transmissions plant in South Carolina. The project, which is expected to wrap up in mid-2025, entails adding a 436,000-square-foot building to boost production at the existing 975,000-square-foot plant. Click here to read more project information.

Subscribers to the GMI Database can click here for all project reports mentioned in this article and here for related plant profiles.

Click here for a full list of active capital-spending projects in the U.S. attributed to auto component manufacturing.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).