The 88th General Assembly
has convened the 2012 fiscal session

Wednesday, February 28, 2007

Toyota plant announcement from Tennessee's perspective

Here's the angle from the Tennessan. An excerpt:

Tennessee officials and industry observers believe Chattanooga may have been too far east — and too far from Toyota's other suppliers — to suit the Japanese automaker. These decisions are often guided by strategic business reasons," said J. Ed. Marston, vice president of marketing and communications for the Chattanooga Area Chamber of Commerce.

Toyota also passed up a site in Marion, Ark. Officials in that state said they were told that Toyota had concerns about air quality in the area, which lies about 10 miles west of Memphis. The area's ozone level exceeds that allowed under federal regulations. That could have made it more difficult for Toyota to obtain the permits it needed to open or to expand in the future. Arkansas officials dispute that their air is unclean but acknowledged that a December court ruling on the issue may have made Toyota nervous about coming to the state.

Toyota's reasons for locating in Tupelo were unclear. In a statement, Toyota mentioned only northern Mississippi's "educated, ethical and friendly" work force and cooperation among state and local officials as factors. Another possibility was labor costs. The Tupelo plant will be Toyota's fifth vehicle assembly plant in the United States, and as its presence has grown, the company has become increasingly concerned about holding down the cost of wages. Harley Shaiken, a professor specializing in labor issues at the University of California-Berkeley, doubted that factor alone would have tipped the scales toward Mississippi. "All of these locations have the potential to be low-wage states," he said.