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Automakers Head South in Droves

Click here for the full story. Birmingham, AL—Beleaguered Delphi Corp., the bankrupt auto parts maker, is facing a strike by its workforce and closing plants nationwide. But the company is growing in Alabama. DaimlerChrysler AG recently gave suburban Detroit-based Delphi the contract to design and build the cockpit for a new Mercedes sport utility vehicle. Delphi will manufacture the parts at two facilities near the Mercedes vehicle-assembly plant in Tuscaloosa, about an hour SW of Birmingham.…

By John McCloud | Updated on May 20, 2006

Click here for the full story.

Birmingham, AL—Beleaguered Delphi Corp., the bankrupt auto parts maker, is facing a strike by its workforce and closing plants nationwide. But the company is growing in Alabama. DaimlerChrysler AG recently gave suburban Detroit-based Delphi the contract to design and build the cockpit for a new Mercedes sport utility vehicle. Delphi will manufacture the parts at two facilities near the Mercedes vehicle-assembly plant in Tuscaloosa, about an hour SW of Birmingham.

The focus of US automotive manufacturing is shifting from North to South. For the past six years, the auto industry has been turning from Detroit to cities in states like Alabama, Tennessee, Kentucky and North Carolina. The southern facilities, however, are primarily serving foreign rather than domestic vehicle manufacturers. While Ford Motor Co. and General Motors Corp. cut production at home and abroad, European and Asian automakers are expanding in the US, mostly south of the Mason-Dixon line.

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