U.S. Automakers Look to $14 Billion in First-Quarter Kickoffs

Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. auto market is on course to finish 2023 with new-vehicle sales volumes up more than 10% from 2022 and at the highest level since 2019, according to Cox Automotive, with pent-up demand largely negating the effects of this year's prolonged autoworker strikes and rising interest rates. On the manufacturing front, automakers are continuing to develop electric vehicle (EV) technology, while keeping an eye on its traditional car drivers. Industrial Info is tracking more than $14 billion worth of capital-spending projects in the U.S. automotive industry that are set to begin construction in the first quarter, with technology related to EVs driving a significant share of the investment.

Click on the image at right for a graph detailing the top 10 parent companies for capital-spending projects at U.S. auto-sector facilities that are set to kick off from January through March.

While Tesla Incorporated NASDAQ:TSLA) (Austin, Texas) and similar EV-focused companies grab most of the headlines when it comes to technological innovation, industry stalwarts like Toyota Motor Corporation (NYSE:TM) (Toyota City, Japan) have been upping their game. Toyota is preparing for a $500 million upgrade to its vehicle-assembly and engine-manufacturing plant in Georgetown, Kentucky--already Toyota's largest manufacturing plant in the world--to make way for a new, battery-electric sports utility vehicle (SUV).

Toyota recently backed up its plans for Georgetown through an agreement with LG Energy Solution (Seoul, South Korea), which will supply lithium-ion battery modules to the plant. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can learn more from a detailed project report; for more details on the agreement, see October 9, 2023, article - Toyota Signs EV Battery-Supply Agreement with LG.

Kentucky also boasts a more traditional auto-industry project: Thai Summit Group's (Samut Prakan, Thailand) $131 million expansion of its automotive-stamping plant in Bardstown, which supplies sheet metal to Ford Motor Company (NYSE:F) (Dearborn, Michigan), Stellantis (NYSE:STLA) (Hoofddorf, Netherlands), Rivian (Irvine, California) and Tesla. The company expects to more than double its manufacturing footprint from 200,000 to more than 520,000 square feet by the third quarter of 2024. Subscribers can learn more from Industrial Info's project report.

Stellantis is readying to begin a yearlong, $51.7 million upgrade to its transmission plant in Kokomo, Indiana, to manufacture gearbox covers for new electric drive modules (EDMs). In a press release, Stellantis said the project "aligns with the company's long-term strategy to reach 50% U.S. battery-electric vehicle sales by 2030, starting with the first fully electric Ram vehicles from 2023 and Jeep from 2024." Subscribers can learn more from a detailed project report.

But no car, gasoline-powered or electric, can run without tires, and Tennessee is home to a pair of expansions that will address rising demand. Hankook Tire & Technology Company Limited (Seongnam-si, South Korea) is preparing for a $1.6 billion expansion of its radial tire-manufacturing plant in Clarksville, which would double the facility's annual production to 12 million tires, while Kordsa Global (Istanbul, Turkey) is planning a $50 million expansion of its industrial nylon facility in Chattanooga, to increase its production of tire cord fabric. Subscribers can read detailed reports on the Clarksville and Chattanooga projects.

"This production expansion is a vital step to our growth in the medium-truck market, making Hankook one of only a few manufacturers producing TBR [truck bus and radial] products in the U.S.," said Rob Williams, the senior vice president of North American sales for Hankook, in a press release. "As a result, we can better meet the needs of both our growing dealer base and the fleets that serve the North American shipping lanes."

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for automotive-related capital-spending projects that are set to kick off across the U.S. in first-quarter 2024.

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) platform 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 more than 200,000 current and future projects worth $17.8 trillion (USD).