Alabama's Economy Lifted by Auto Industry

[Frodo]

Does anyone see Alabama eventually becoming as dominated by the auto industry as Michigan was in its heyday?
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Hyundai’s Swift Growth Lifts Alabama’s Economy

By NICK BUNKLEY
Published: February 18, 2011
 
MONTGOMERY, Ala. — Few people in this city 800 miles south of Detroit cared much about the auto industry until Hyundai announced it would build cars here nine years ago.

Hyundai and its sister company, Kia, which opened a plant last year just across the Georgia state line, have brought thousands of well-paying jobs to the region and even helped nurture a little Korean culture in Montgomery, the first capital of the old Confederacy. Hyundai is running its Montgomery plant almost nonstop. Rarely do more than a few weeks pass without word that another parts supplier has dozens of new positions to fill, typically offering good benefits and double the pay that the average Alabamian earns.

Hyundai, which will observe its 25th anniversary selling vehicles to American drivers on Sunday, was little more than an ambitious, second-tier brand when it chose to build its first United States car factory just south of Montgomery. But during the recent recession, the South Korean company thrived as Americans sought out cheap cars just as Hyundais were improving in quality.

In 2010, Hyundai and Kia each posted their highest sales in the United States and, taken together, surged ahead of Ford Motor to become fourth-largest automaker worldwide. Hyundai built 300,000 cars in Montgomery last year and sold most of them in the United States.  

[phk]

Does anyone see Alabama eventually becoming as dominated by the auto industry as Michigan was in its heyday?

No.

Nobody will be as dumb as Michigan to put all of its eggs in one basket.

[opebo]

It seems unlikely.  In the future a much smaller percentage of the population in the US will be able to afford an automobile, and of course wages in the Alabama auto industry are ridiculously low, so the industry will not become large like it was in the good times in Detroit.

[Hash]

There'll always be the Bible industry.

[memphis]

You also don't need as many people to make cars as you used to with the automated factories.

[opebo]

You also don't need as many people to make cars as you used to with the automated factories.

Not to mention car sales are a fraction of what they once were.  Far more cars were sold in the 1970s and even in the 1980s with a much smaller population.  Lets face it, people are very poor now, only a tiny minority of them can afford new cars.

[tpfkaw]

You also don't need as many people to make cars as you used to with the automated factories.

Not to mention car sales are a fraction of what they once were.  Far more cars were sold in the 1970s and even in the 1980s with a much smaller population.  Lets face it, people are very poor now, only a tiny minority of them can afford new cars.

In the 1970s, there were still quite a few people purchasing the first car they had ever owned (or their first second car).  If there were many more people purchasing flush toilets in the 1950s, that doesn't mean people are no longer capable of affording flush toilets.  Likewise, if people are purchasing many more television sets today than in the 90s, that doesn't mean people were incapable of purchasing a television set back then.

[opebo]

In the 1970s, there were still quite a few people purchasing the first car they had ever owned (or their first second car). 

That's absolutely ridiculous, wormyguy!  Or was that a typo?  Did you think we were discussing the 1920s?

[tpfkaw]

In the 1970s, there were still quite a few people purchasing the first car they had ever owned (or their first second car). 

That's absolutely ridiculous, wormyguy!  Or was that a typo?  Did you think we were discussing the 1920s?

That's not ridiculous at all.  In the 1970s many people moved from cities to suburbs and bought their first car.

[opebo]

That's not ridiculous at all.  In the 1970s many people moved from cities to suburbs and bought their first car.

Working class wages were much higher at the time, hence more cars were sold.

[Filuwaúrdjan]

Though if you're buying your first car, you buy second hand unless you're a tool.

[True Federalist (진정한 연방 주의자)]

The main reason why fewer cars are sold these days is simply that they last longer and that maintenance costs have declined. (The two facts are related.  Lower maintenance costs mean an increase of the age at which continued repairs still make economic sense.) I have an eleven-year old car (only the third vehicle I've ever owned) that still works fine and which I am in no hurry to trade-in for a newer one, tho it is at the age where one needs to be prepared for a major repair that makes buying a replacement vehicle the sensible option.  Indeed, the only reason anyone needs to buy a new car more often than once every decade or so would be if you work in a business where you'll be carrying clients in there.  (You may want to buy more frequently for similar reasons as well, but I'm one of those who views a car as a fairly utilitarian device, not a fashion statement.)

[opebo]

The main reason why fewer cars are sold these days is simply that they last longer...

No, the reason cars are kept longer are because people are poorer, TF.

[King]

Nobody will be as dumb as Michigan

ALABAMA

[dead0man]

Dance opebo dance!


Seriously though, shouldn't these workers (slaves) be suffering and not celebrating.  Don't there poor stupid bastards know how much more they could be making if they were a union shop?

<snicker>

[opebo]

Seriously though, shouldn't these workers (slaves) be suffering and not celebrating.  Don't there poor stupid bastards know how much more they could be making if they were a union shop?

They're just cringing victims, deadman.  Don't blame them for their pathetic sycophancy.

[patrick1]

Seriously though, shouldn't these workers (slaves) be suffering and not celebrating.  Don't there poor stupid bastards know how much more they could be making if they were a union shop?

They're just cringing victims, deadman.  Don't blame them for their pathetic sycophancy.

[opebo]

patrick, its deadman who's the one noter here.  The right is one note, and the left is one note. that is politics.  If you don't like it, leave.

[Gustaf]

patrick, its deadman who's the one noter here.  The right is one note, and the left is one note. that is politics.  If you don't like it, leave.

I thought you were in favour of free speech and all that? Or else, why don't you leave, given how much you complain about things here?

[opebo]

patrick, its deadman who's the one noter here.  The right is one note, and the left is one note. that is politics.  If you don't like it, leave.

I thought you were in favour of free speech and all that? Or else, why don't you leave, given how much you complain about things here?

I was evaluating a friendly complaint from another poster, Gustaf, which had nothing todo with the censorship,or you.  Why do you push in?

[patrick1]

patrick, its deadman who's the one noter here.  The right is one note, and the left is one note. that is politics.  If you don't like it, leave.

Some nuance would be nice. Many of your posts just seem canned responses. However, I havent contributed to said thread, other than a drive-by, so I will leave to your devices.

[Gustaf]

patrick, its deadman who's the one noter here.  The right is one note, and the left is one note. that is politics.  If you don't like it, leave.

I thought you were in favour of free speech and all that? Or else, why don't you leave, given how much you complain about things here?

I was evaluating a friendly complaint from another poster, Gustaf, which had nothing todo with the censorship,or you.  Why do you push in?

Now you want me to shut up too? Where is that fiery liberal spirit?

[opebo]

Now you want me to shut up too?

When have I ever wanted otherwise?