ENDNOTES 1Alliance of Automobile Manufacturers, Economic Information, www.autoalliance.org. 2U.S. Department of Commerce, Office of Automotive Affairs, “The U.S. Auto Industry in Context,” www.ita.doc.gov/td/auto/auto-ind2.html. 3Fulton, George A., McAlinden, Sean P., Grimes, Donald R., Schmidt, Lucie G., and Richardson, Barbara C. Contribution of the Automotive Industry to the U.S. Economy in 1998: The Nation and Its Fifty States. Ann Arbor, MI: The University of Michigan Institute of Labor and Industrial Relations, the University of Michigan Transportation Research Institute, Office for the Study of Automotive Transportation, and the Center for Automotive Research, Winter 2001. 4The 16-member states in The Council of State Governments’ Southern Legislative Conference comprise Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia and West Virginia. 5“Breaking New Ground,” Business Alabama, February 2003. 6“The Economic Impact of BMW on South Carolina,” Darla Moore School of Business, University of South Carolina, May 2002. 7“BMW has Plans to Enlarge Plant,” The North Carolina News and Observer, September 27, 2002. 8“Automobile Production in Kentucky,” Cabinet for Economic Development, www.thinkkentucky.com. 9“Motor Vehicle-Related Facilities,” Division of Research, Cabinet for Economic Development, February 27, 2003, www.thinkkentucky.com. 10Information related to the Nissan plant is based on “Experts Say Economic Impact Will Be Astronomical,” The Mississippi Clarion-Ledger, March 1, 2003; “Lott Urges Preparedness in Luring 2nd Car Plant,” The Mississippi Clarion-Ledger, July 22, 2003; and “The Economic Impact of Nissan in Mississippi,” Executive Summary, Mississippi Development Authority. 11“Toyota Can Trace its Plant in Texas to Cowboys Game,” The Dallas Morning News, February 11, 2003 and “Benefits of Toyota Plant May Ripple Across Texas,”The Dallas Morning News, February 6, 2003. 12Fulton, George A., et al, Contribution of the Automotive Industry to the U.S. Economy in 1998 . . . 13McAlinden, Sean P. et al, Economic Contribution of the Automotive Industry to the U.S. Economy – An Update, A Study Prepared for the Alliance of Automobile Manufacturers, Fall 2003. 14Contribution of the Automotive Industry to the U.S. Economy in 1998 . . 15Ibid. 16“Industry Group 371: Motor Vehicles and Motor Vehicle Equipment,” Occupational Safety & Health Administration, U.S. Department of Labor, www.osha.gov/cgi- bin/sic/sicser. 17“Hwashin to Build Plant in Greenville,” Developing Alabama, Alabama Development Office, Spring 2003, page 1. 18“Supplier to Build Plant in Tuscaloosa,” Developing Alabama, Alabama Development Office, Winter 2003, page 3. 19“Auto Parts Plant to be Built in Tenn.,” The Tennessean, April 9, 2003.

The Drive to Move South, page 138 The Drive to Move South, page 139 20“What is a cluster?” www.photonicsclusters.org/whatisacluster.html. 21Haag, James, J. “Automobile Manufacturing Cluster in North Carolina: Past, Present and Future,” North Carolina Department of Commerce, Division of Policy, Research and Strategic Planning. 22Haag, James, J. Email correspondence with Sujit CanagaRetna, March 18, 2003. 23Haag, James, J. “Automobile Manufacturing . . .. 24“Japanese Renew Interest in N.C.,” The North Carolina News & Observer, February 6, 2003. 25“Toyota to Build Lexus Engines Here,” The Charleston [West Virginia] Gazette, January 26, 2001. 26“Automakers Drive U.S. Economy on Many Different Levels, New Study Shows,” Alliance of Automobile Manufacturers, Media Release, September 24, 2003. Information related to the expansive reach of the automobile industry is extracted from this source. 27“Contribution of the Automotive Industry to the U.S. Economy in 1998 . . . 28For an expanded discussion of globalization and what it is all about, see CanagaRetna, Sujit M., Forging New Trade Relationships: Latin America and the Southern Legislative Conference States, Special Series Report, The Council of State Governments, Southern Legislative Conference, July 2001. 29Friedman, Thomas. The Lexus and the Olive Tree, 1999. 30Greenspan, Alan. Testimony on “Trade Policy” before the U.S. Senate Committee on Finance, April 4, 2001. 31This section draws on “The Auto Industry: How North America is Becoming the Center for Global Manufacturing,” Area Development, September 2002. Also see, “Foreign Automakers Unleash A New Wave of Luxury,” The New York Times, September 27, 2003. 32Duncan, William, Director, Japan Automobile Manufacturers Alliance quoted in “The Auto Industry: How North America . . . “. . . 33Information related to the early years of the auto industry and its international flavor are extracted from “The Contribution of the International Auto Sector to the U.S. Economy,” University of Michigan, Transportation Research Institute, March 1998. 34De Koker, Neil. “Driving to the New Business Model,” Presentation for the Global Automotive Conference 2003, Western Kentucky University’s Office of Global Business, Bowling Green, Kentucky, April 8, 2003. 35“2002 Trade Policy Agenda,” Office of the U.S. Trade Representative. 36“The Contribution of the International Auto Sector . . . 37“Driving America’s Economic Engine,” Showroom, American International Automobile Dealers Association, April 2002, Volume 19, No. 3. 38Klier and Johnson, “Effect of Plant Openings on Net Migration in the Auto Corridor, 1980-97, Economic Perspectives, Federal Reserve Bank of Chicago, Fourth Quarter, 2000. 39“The Southeastern Auto Industry: Moving into the Fast Lane,” Econ South, Federal Reserve Bank of Atlanta, Volume 3, Number 2, Second Quarter 2001. 40Information related to the latest (2003) Harbour and Associates study is extracted from “New Benchmarks Established in the Harbour Report 2003 Measures,” News Release, Harbour and Associates, June 18, 2003; “Smyrna Plant Most Efficient in America,”The Mississippi Clarion-Ledger, June 19, 2003; “U.S.

The Drive to Move South, page 138 The Drive to Move South, page 139 Automakers Improve Efficiency, but Some Troubling figures Remain,”The New York Times, June 19, 2003. 41Information regarding Nissan’s employment situation is extracted from “Mississippi Nissan Plant Attracts 61,000 Job Seekers,” The Atlanta Journal Constitution, February 7, 2003. 42“Nissan’s Hunt for Workers Finished,” The Mississippi Clarion-Ledger, April 21, 2003. 43Canup, Dr. Buzz, “A Magnet for High-Tech Growth,” Southern Technology Sites, Spring 2002. 44Ibid. 45“Hyundai Motor America Celebrates the Grand Opening of its First Baltimore Port Processing Facility,” Press Release, Maryland Ports Administration, May 21, 2002. 46“The Port of Baltimore’s Cargo,” Maryland Ports Administration, www.mpa.state.md.us. 47“Baltimore Becomes First U.S. Port to Receive Hondas Manufactured in the U.K.,” Press Release, Maryland Ports Administration, January 29, 2002. 48“Ford Focuses its Export Auto Business at the Port of Baltimore,” Press Release, Maryland Ports Administration, February 5, 2002. 49“Hyundai Motor America Celebrates the Grand Opening of its First Baltimore Port Processing Facility,” Press Release, Maryland Ports Administration, May 21, 2002. 50“Mercedes Signs Long Lease with Port,” The Baltimore Sun, April 15, 2003. 51“Port of Brunswick Surpasses 200,000 Autos in Record Time,” Press Release, Georgia Ports Authority, March 23, 2003. 52“BMW Rolls in Colonel’s Island: One of the Nation’s Fastest Growing Autoports,” Georgia Ports Authority, Media Release, Volume 43, No.1, July 30, 2003. 53“The Economic Impact of BMW on South Carolina”. . . 54Information received from Byron Miller, Information Officer, South Carolina State Ports Authority on April 14, 2003. 55“Eisenmann Shipping Equipment for Mercedes Expansion Through Alabama State Docks,” Alabama State Port Authority, News Release, December 22, 2003. 56U.S. Department of Commerce, Office of Automotive Affairs, “The Road Ahead for the U.S. Auto Industry,” April 2002. 57“Driving Downhill,” The Economist, January 3, 2003. 58“Chrysler Group Reports U.S. December Sales,” News Release, DaimlerChrysler Corporation, January 3, 2003. 59“Chrysler Group Reports U.S. October Sales Increase of 11 Percent,” News Release, DaimlerChrysler Corporation, November 3, 2003. 60“GM Reports Best December Sales Since 1979,” News Release, General Motors Corporation, January 3, 2003. 61“GM Reports October Sales of 363,043, Down 7 Percent,” News Release, General Motors Corporation, November 3, 2003. 62“Ford Motor Company’s December U.S. Sales Climb 8.2 Percent,” Media Release, Ford Motor Company, January 3, 2003. 63“Monthly U.S. Sales,” Media Release, Ford Motor Company, November 3, 2003.

The Drive to Move South, page 140 The Drive to Move South, page 141 64“Honda’s Profits Higher in Quarter, Year,”The New York Times, April 25, 2003. 65“Hyundai Predicts a Tripling on Sales in the U.S. by 2010,” The New York Times, September 21, 2002. 66“Hyundai Profit Soars, Outpaces Big 3 Rivals,”USA Today, August 8, 2003. 67“Nissan Declares It’s Debt-Free,” The Mississippi Clarion-Ledger, April 24, 2003. 68“Driving Downhill,” . . . 69Ibid. 70“Making the Same Old Car Won’t Boost the Bottom Line,” The Tennessean, April 9, 2003. 71Ibid. 72“Auto Industry Promises More Incentives,” The Mississippi Clarion-Ledger, January 2, 2003. 73U.S. Automakers Improve Efficiency, but Some Troubling figures Remain,”The New York Times, June 19, 2003. 74Ibid. 75“Auto Sales Are Down. Punish the Parts Makers,” The New York Times, March 16, 2003. 76Information related to Alabama’s automobile industry, unless indicated otherwise, is extracted from the following sources: “Tracking the Growth of Alabama’s Automotive Manufacturing Industry,” Alabama Automotive Manufacturers Association, May 2003; “Alabama Zooms Up List of Southern Automakers,” Developing Alabama, Alabama Development Office, Winter 2003; and “Alabama Will Vault to South’s Top Three,” Mary S. Spann, Ph.D., Business Alabama, February 2003. 77“Tracking the Growth of Alabama’s Automotive . . .” 78Ibid. 79Kebede, Ellene and Ngandu, Mudiayi Sylvain, “The Economic Impact of the Mercedes-Benz Investment on the State of Alabama,” Journal of Agricultural and Applied Economics, 31, 2 (August 1999); page 371. 80“Auto-Related Announcements 60.9% of Investment in 2002,” Developing Alabama, Alabama Development Office, Winter 2003, page 5. 81Ibid. Statistics cited in this paragraph are obtained from this source. 82Troy State University, Sorrell College of Business, “Economic Impact Analysis of the Mercedes-Benz A.G. Multipurpose Vehicle Production Facility for the State of Alabama,” 1993, page 1. 83“Mercedes Good Blueprint for Montgomery,” The Montgomery Advertiser, March 17, 2003. 84Ibid. 85Ibid. 86Information regarding the Lincoln Honda plant, unless otherwise stated, is extracted from “The Odyssey Demand,” Business Alabama, February 2003; “Mercedes Good Blueprint for Montgomery,” The Montgomery Advertiser, March 17, 2003; and “Automotive Expansions Affirm Alabama’s Economic Development Strategy,” Site Selection Magazine, May 2001. 87The lead-up to Hyundai’s decision to build its first North American plant in Alabama resulted in intense competition among several states. As mentioned, Ohio, Kentucky, Michigan and Mississippi aggressively pursued this project. (See

The Drive to Move South, page 140 The Drive to Move South, page 141 “Ohio Wined, Dined and Lost,” The Mississippi Clarion-Ledger, April 9, 2002) For instance, Ohio’s efforts cost the state’s taxpayers about $21,000, including air fare, hotel charges, restaurant charges, small plane and helicopter trip charges over potential sites, miscellaneous gifts. In contrast, Mississippi’s failed efforts cost the state about $386,241, of which $212,035 was paid to an engineering company that determined the suitability of certain sites for road, utility, water and sewer improvements. In addition, Mississippi Governor Musgrove and Ronnie Scruggs, liaison between then U.S. Senate Majority Leader Trent Lott’s office and the governor’s office, traveled to Seoul, South Korea, in February 2002, to meet with Hyundai’s president and personally pitch the state to company officials. Kentucky’s chances to land the project were probably negatively affected by the potential protracted legal battle between Hardin County (the county where Kentucky hoped to locate the Hyundai plant) resident Leon Howlett and state officials. Kentucky had sought to build its Hyundai plant in Glendale, located in Hardin County. Even though the Howlett family agreed to sell their 111 acre farm for six times its appraised value just hours before Hyundai’s decision to settle in Alabama, the family had previously indicated–citing the U.S. Constitution’s “eminent domain” provisions–that it would not sell its land. The family had indicated their lack of interest in selling the property repeatedly to Hyundai officials. (See “E-mail to Hyundai Said Family Would Fight for Land,” The Louisville [Kentucky] Courier-Journal, April 5, 2002). Then, several months later, the state of Michigan, in an unprecedented action, tried to block Hyundai’s latest assembly project by raising questions on whether the proposed plant in Alabama met the federal Environmental Protection Agency’s (EPA) requirements governing air pollution control. In its filing, Michigan’s Department of Environmental Quality claimed that the state is losing jobs and money because Alabama is not enforcing EPA standards as stringently as it does. Then Alabama Governor Siegelman noted, “I detect just a wee bit of jealousy from the folks in Michigan. They’re beginning to feel the pinch from Alabama’s success in the automotive industry.” (See “Detroit Takes on Alabama,” www.al.com, September 22, 2002). 88For details on the incentive package, see “Hyundai Incentives: $252.8 million,” www.al.com, April 5, 2002 and “Survey Response: Hyundai Incentives,” Alabama Development Office. 89“Survey Response: Toyota Incentives,” Alabama Development Office. 90“Report Says State To Recoup Toyota Costs in 4 Years,” The Huntsville Times, February 8, 2001. 91“Toyota Expanding Alabama Engine Plant to Add 150 Jobs,” www.al.com, July 14, 2003. 92“Extras Bring Jobs to Towns,” The Montgomery Advertiser, April 28, 2003. 93“Second Supplier for Montgomery,” The Montgomery Advertiser, May 23, 2003. 94“Officials Hope Arkansas Plant Cranks Economic Engine,”The Memphis Commercial Appeal, July 17, 2003. 95Response to Southern Legislative Conference Questionnaire, February 25, 2003, Jim Pickens, Director, Arkansas Department of Economic Development. 96Governor Mike Huckabee, Legislative Agenda, www.accessarkansas.org/governor/. 97Ibid.

The Drive to Move South, page 142 The Drive to Move South, page 143 98“Arkansas Could Have Harder Sell than Others in South,” www.al.com, September 25, 2002. Unless specified, the information contained in the ensuing paragraphs are based on information in this article. 99Ibid. 100Information presented in the Florida section, unless otherwise specified, is drawn from the following sources: Responses to Southern Legislative Conference Questionnaire, March 14, 2003, James D. Kelley, Chief Executive Officer, Enterprise Florida, Inc.; “Florida’s Automotive-Related Businesses,” Enterprise Florida, Inc., March 2003; and “The Transportation Equipment Industry Sector in Florida,” Enterprise Florida, Inc., August 7, 1997. 101“Florida Firm to Make Air Bags for Hyundai’s Alabama Plant,” www.al.com, September 3, 2003. 102The Georgia Department of Industry, Trade and Tourism, the state’s economic development agency, did not respond to the survey questionnaire forwarded by the Southern Legislative Conference. Hence, the information contained in the Georgia section was extracted from the agency’s Web site (www.georgia.org) and from a number of newspaper articles on the topic. 103“Big Tract For Suitable Plant,” The Atlanta Journal Constitution, September 23, 2003. 104“DaimlerChrysler Won’t Build Georgia Plant,” The Atlanta Journal Constitution, September 23, 2003. 105“Hartsfield’s Role as Georgia’s Largest Economic Engine Strengthens,”Press Release, Hartsfield International Airport, June 6, 2003. 106Information related to the Ford facility is based on “Hapeville Likes Delay of Ford’s Departure,” The Atlanta Journal Constitution, July 10, 2003; “Ford to Keep Making Tauruses in Hapeville,” The Atlanta Journal Constitution, July 1, 2003; “The Fight for Ford,” The Atlanta Journal Constitution, May 25, 2003; “Ford Looking to Build Another Plant in Georgia,” The Atlanta Journal Constitution, May 1, 2003; “Ford Workers Unfazed,” The Atlanta Journal Constitution, May 5, 2003; “Hapeville Plant Waits in the Wings to Build New Model,” The Atlanta Journal Constitution, April 17, 2003; “Ford in Your Future,” The Atlanta Journal Constitution, October 24, 2002. 107“New Ford Plant in Doubt,” The Atlanta Journal Constitution, August 19, 2003. 108“Ford Plant Finds Efficiency Is No Protector,”The New York Times, August 19, 2003. 109Information related to the GM facility is based on “GM to Retool Doraville Plant for New Vans,” The Atlanta Journal Constitution, February 1, 2003; GM Plants to Receive Upgrade,” The Atlanta Journal Constitution, February 4, 2003; “Doraville Assembly,” General Motors Media Center, www.gm.com. 110“GM To Build Four New Vans in Doraville,” The Atlanta Journal Constitution, September 9, 2003. 111Information related to Blue Bird Corporation is based on press releases from the Blue Bird Corporation, www.blue-bird.com/news and “Major Blue Bird Expansion,” GlobalFax, February 21, 2003, www.globalatlanta.com. 112Information related to the proposed DaimlerChrysler facility in Georgia and related material is based on “Daimler Puts Off Decision at Plant,” The Atlanta Journal Constitution, July 10, 2003; “DaimlerChrysler Board Set to Vote on Georgia Van Plant,” The Atlanta Journal Constitution, July 8, 2003; “Inroads in the Van Market,” The Atlanta Journal Constitution, October 15, 2002; “Chronology of Events: DaimlerChrysler,” The State [Columbia, South Carolina], October 18, 2002; “Georgia Wins Bidding War for a DaimlerChrysler Plant,” The New York

The Drive to Move South, page 142 The Drive to Move South, page 143 Times, October 18, 2002; “It’s Georgia, Not S.C.,” The State [Columbia, South Carolina], October 18, 2002; “Jasper County Expects Spillover Benefits,”The State [Columbia, South Carolina], October 18, 2002; “Georgia Outbid S.C.,” The State, October 18, 2002. 113“DaimlerChrysler Won’t Build Georgia Plant,” The Atlanta Journal Constitution, September 23, 2003 and “For Sale: Big Tract for Suitable Plant,” The Atlanta Journal Constitution, September 25, 2003. 114“Bush Backs DaimlerChrysler Center,” The Jacksonville Florida Times-Union, April 30, 2002. 115“Georgia Gives Daimler A Deadline,” The Atlanta Journal Constitution, August 23, 2003. 116“State Hasn’t Given Up on Landing An Auto Plant,” The Atlanta Journal Constitution, September 29, 2003. 117“Perdue Makes Georgia Case to Audi,” The Atlanta Journal Constitution, June 18, 2003. 118“Calhoun Celebrates Indian Assembly Plant Opening,” GlobalFax, May 16, 2003, www.globalatlanta.com. 119“State Highways, Ports, Hartsfield Key to Luring Indian Plant,”Global Flash News, August 29, 2003. 120Unless otherwise specified, information related to Kentucky’s automobile industry is extracted from Response to Southern Legislative Conference Questionnaire, March 3, 2003,” Kentucky Cabinet for Economic Development, and “Automobile Industry in Kentucky,” Kentucky Cabinet for Economic Development, October 2002, www.thinkkentucky.com. 121“Gross State Product Data: Motor Vehicles,” U.S. Department of Commerce, Bureau of Economic Analysis, www.bea.doc.gov/bea/regional/gsp. 122Information related to the economic impact of the Toyota plant in Kentucky is extracted from Haywood, Charles F., “A Report on the Significance of Toyota Motor Manufacturing, Kentucky, Inc. to the Kentucky Economy,” University of Kentucky, Gaton College of Business and Economics, October 1998. 123“Automotive Assembly Plants in Kentucky,” in Response to Southern Legislative Conference Questionnaire March 3, 2003, Kentucky Cabinet for Economic Development, March 3, 2003. 124“Automobile Industry in Kentucky,” Kentucky Cabinet for Economic Development, October 2002, www.thinkkentucky.com. 125“Motor Vehicle-Related Facilities,” Division of Research, Kentucky Cabinet for Economic Development, July 2 and 21, 2003, and February 27, 2003, www.thinkkentucky.com. 126“Japanese Steelmaker to Build $32.7 Million Aluminum Material Plant in Bowling Green,” The Louisville Courier-Journal, June 2, 2003. 127Information related to the automotive industry in Louisiana, unless otherwise specified, is obtained from a series of reports and documents submitted by the Louisiana Department of Economic Development and the Shreveport Chamber of Commerce. These include “Response to Southern Legislative Conference Questionnaire, May 15, 2003;”; “Brochure on the Automotive Industry in Louisiana”; “Growing an Automotive Cluster”; “Listing of Automotive Suppliers in Louisiana”; “Louisiana’s Enterprise Zone Program”; “Courting Mega Projects, February 2003”; “Industry Cost/Profit Analysis: Automotive Replacement Parts,” The Fantus Company; “The Automotive Industry and Louisiana,” Stan Fulcher Communications & Research, Baton Rouge, LA, June 1998.

The Drive to Move South, page 144 The Drive to Move South, page 145 128Data from www.gm.com. 129“General Motors Considering Major Expansion,” The Baton Rouge Advocate, September 3, 2003. 130Information related to Maryland’s automobile and related industries, unless otherwise specified, is based on information provided by the department in response to the SLC questionnaire. The response, dated April 2, 2003, included a letter from Secretary Melissaratos and accompanying documents including “Automotive Industry : Maryland Business at Work,” Department of Business and Economic Development; “Top Ten Maryland Employers in Automotive Sector,” Department of Business and Economic Development. 131www.gm.com. 132“Future Dimmer for Local GM Plant,” The Baltimore Sun, September 23, 2003. 133Information related to Missouri’s automobile industry, unless otherwise specified, is secured from “Response to the Southern Legislative Conference Survey, March 14, 2003,” “Importance of Automotive Industry in Missouri” and “Economic Impact of the Ford Motor Company - Hazelwood Plant Closure in Missouri.” All these reports were provided by the Missouri Department of Economic Development, Economic Research and Information Center. 134“$9 Million Price Tag Put on Ford Incentives,” The St. Louis Post-Dispatch, September 23, 2003; “$9 Million Incentive Plan Helped Save Ford Plant,” The Jefferson City News Tribune, September 23, 2003; and “Ford to Keep Local Plant,” The St. Louis Post-Dispatch, September 24, 2003. 135Unless otherwise specified, information related to the Mississippi automobile industry and the Nissan plant is based on “Vision Mississippi: Share Vision for the Future,” A CD-Rom prepared by the Mississippi Development Authority for the New York Automotive Show in April 2003 and submitted to the Southern Legislative Conference as the state’s official response to the questionnaire designed to collect information for this report. This CD-Rom, amongst other topics, includes sections on contractor, supplier and employment information; timeline; photo gallery, press room; and Mississippi Advantage. 136“Hyundai Plant Possible,” The Mississippi Clarion-Ledger, February 19, 2002. 137“Toyota Buzz Hits Tiny Como,” The Mississippi Clarion-Ledger, September 18, 2002. 138“Lott Urges Preparedness in Luring 2nd Car Plant,” The Mississippi Clarion-Ledger, July 22, 2003. 139“Job Centers Help Mississippi Firms,” The Mississippi Clarion-Ledger, September 5, 2003. 140“First Mississippi-made Nissan Quest at the Bank,” The Mississippi Clarion-Ledger, July 3, 2003. 141“Lott Urges Preparedness . . .,” Ibid. 142Information related to the economic impact of the project is obtained from “The Economic Impact of Nissan in Mississippi,” Mississippi Development Authority; “Experts say Economic Impact will be Astronomical,” The Mississippi Clarion- Ledger, March 1, 2003; and, “Nissan Impact on Miss. will be Gigantic,” The Mississippi Clarion-Ledger, May 26, 2003. 143“The Economic Impact of Nissan . . .” Ibid. 144“Nissan Impact on Miss. . . .” Ibid. 145Unless otherwise specified, information related to North Carolina’s automobile industry was secured from the state’s Department of Commerce, Division

The Drive to Move South, page 144 The Drive to Move South, page 145 of Policy Research and Strategic Planning. The documents submitted by the department included “Response to Southern Legislative Conference Questionnaire, March 18, 2003,” North Carolina Department of Commerce; “Automobile Manufacturing Cluster in North Carolina: Past, Present and Future,” James J. Haag, Division of Policy, Research and Strategic Planning; statutes and details on the William S. Lee Tax Credit of 2001 and the Job Development Investment Grant Program of 2002; and table outlining North Carolina’s top 30 companies in the automotive cluster. 146Michael Porter’s cluster definition and explanation of clusters are taken from Clusters and the New Economics of Competition, by Porter, Michael E., Harvard Business Review, Nov. - Dec. 1998 as cited in “What is a Cluster,” www.photoni csclusters.org. 147“Response to Southern Legislative Conference Questionnaire, March 18, 2003,” North Carolina Department of Commerce. 148Ibid. 149“Japanese Renew Interest in N.C.,” The North Carolina News & Observer, February 6, 2003. 150Ibid. Information in this paragraph on these latest trends are secured from this article. 151“Manufacturing’s Challenge,” The North Carolina News & Observer, August 1, 2003. 152“2003 New Plant Opening,” www.thomasbus.com. 153www.gilbarco.com. 154www.douglasbattery.com. 155Information on the use of discretionary funds to recruit companies is obtained from “Recruitment Fund Nearly Tapped Out,” The Charlotte [North Carolina] Observer, July 27, 2003. 156Haag, James J. “Follow-up Analysis of William S. Lee Tax Returns: 2003 Evaluation of the William S. Lee Act,” North Carolina Department of Commerce, Division of Policy, Research and Strategic Planning. 157“Response to Southern Legislative Conference Questionnaire, March 18, 2003,” North Carolina Department of Commerce, and the Job Development Investment Grant Program of 2002. 158Information related to Oklahoma’s automobile industry, unless otherwise specified, is based on “Response to Southern Legislative Conference Questionnaire, March 28, 2003,” Oklahoma Department of Commerce, Office of Business Development. 159www.gm.com. 160“Michelin North America, Inc. Announces New Investment in Ardmore,” Oklahoma Department of Commerce, Media Release, February 28, 2003. 161“Success Stories,” Oklahoma Department of Commerce, www.odoc.state.ok.us. 162Information related to the BMW plant, unless otherwise specified, is based on information contained in “The Economic Impact of BMW on South Carolina,” University of South Carolina, Darla Moore School of Business, Division of Research, May 2002; “Automotive Excellence,” South Carolina Department of Commerce, December 2002; and “Carmaker Powers Upstate Economy,” The Greenville [South Carolina] News, June 9, 2003. 163“BMW Has Plans to Enlarge Plant,” The North Carolina News & Observer, September 27, 2002.

The Drive to Move South, page 146 The Drive to Move South, page 147 164“Carmaker Powers. . . 165Ibid. 166“10 Years Later - BMW Manufacturing Corp. To Invest $400 Million and Add 400 Jobs,” BMW Manufacturing Corporation, Media Release, September 26, 2002, www.bmwusa.com. 167“Honda to Expand ATV Plant in South Carolina,” South Carolina Department of Commerce, Media Release, January 21, 2000. 168“American LaFrance Celebrates Grand Opening of North Charleston Plant and Headquarters,” South Carolina Department of Commerce, Media Release, July 22, 2002. 169“Sanford Says He Has Concerns About Auto Park,” The Greenville [South Carolina] News, February 19, 2003. 170“Nissan Still Tops in Efficiency, Says Report,”The Nashville Tennessean, June 14, 2002. 171Response to the Southern Legislative Conference Survey, October 27, 2003, Tennessee Department of Economic Development and Community Affairs, Division of Research. 172“Mitsubishi Sniffs Out Tennessee’s Incentives,” The Nashville Tennessean, February 12, 2003. 173“Governor Bredesen Welcomes Toyota to Tennessee,” News Release, Tennessee Department of Economic and Community Development, March 28, 2003. 174Information related to the Nissan plant in Tennessee is based on Response to Southern Legislative Conference Questionnaire, Tennessee Department of Economic Development and Community Affairs, Division of Research, March 6, 2003; “Japanese Investment in Tennessee: The Economic Effects of Nissan’s Location in Smyrna,” William F. Fox, Professor of Economics, the University of Tennessee, 1988. 175“Business Overview, 2002-2002,” www.nissan-global.com. 176Unless otherwise specified, information related to the Saturn plant in Tennessee is based on “Saturn: The Tennessee Lessons,” by William F. Fox and C. Warren Neel, Forum for Applied Research and Public Policy, Spring 1987 and “Observations on the Saturn Project: Site Selection, Financial Incentives and Impact,” by Stuart C. Gilbert, Economic Development Review, Fall 1994. 177www.saturn.com 178“The Location Decision of Automotive Suppliers in Tennessee and the Southeast,” Center for Business and Economic Research, the University of Tennessee, June 1999. 179“Auto Parts Plant to Be Built in Tennessee,” The Nashville Tennessean, April 9, 2003. 180“Drooping Auto Sales Dent State Budget,” The Dallas Morning News, January 1, 2003. 181Unless otherwise specified, information related to the automobile industry in Texas is based on information provided in “Response to the Southern Legislative Conference Survey, March 14, 2003,” Governor’s Office of Economic Development & Tourism. 182City of Arlington, Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2001. 183Information related to the Toyota plant is obtained from “Toyota Wants Doubled Share of Pickup Sales,” The Memphis Commercial Appeal, February 12, 2003;

The Drive to Move South, page 146 The Drive to Move South, page 147 “Economic Incentives: City Offered Least Money to Get Plant,” The San Antonio Express-News, February 10, 2003; “Toyota Can Trace its Plant in Texas to Cowboys Game,” The Dallas Morning News, February 11, 2003; “Benefits of Toyota Plant May Ripple Across Texas,” The Dallas Morning News, February 6, 2003; and, “Toyota To Build Factory in Texas,” The Dallas Morning News, February 5, 2003. 184“Response to the Southern Legislative Conference Survey, October 23, 2003,” Governor’s Office of Economic Development & Tourism. 185“Rail Funds Could Reel in Toyota,” The Dallas Morning News, December 19, 2002. 186“Response to the Southern Legislative Conference Survey, October 23, 2003,” Governor’s Office of Economic Development & Tourism. 187“Auto Plant Would Bring Tremendous Growth With Positive Ripple Effect Statewide Rylander Reports,” Carole Keeton Strayhorn, Texas Comptroller of Public Accounts, Media Release, October 8, 2002. 188“Toyota Plant Expected to Use Mexico Contacts,” The Dallas Morning News, February 6, 2003. 189Information related to the Virginia automobile industry, unless otherwise specified, is based on “Response to the Southern Legislative Conference Survey, March 13, 2003,” Virginia Economic Development Partnership, Division of Research. 190Unless otherwise specified, information related to West Virginia’s automobile parts sector is based on a spreadsheet provided by Lynn Thompson with the West Virginia Development Office on March 21, 2003. 191“Response to the Southern Legislative Conference Survey, October 20, 2003,” West Virginia Department Office. 192Also see “Toyota to Build Lexus Engines Here,” The Charleston [West Virginia] Gazette, January 26, 2001. 193“Breaking New Ground,” Business Alabama, February 2003. 194“The Economic Impact of BMW on South Carolina,” Darla Moore School of Business, University of South Carolina, May 2002. 195“BMW has Plans to Enlarge Plant,” The North Carolina News and Observer, September 27, 2002. 196“Automobile Production in Kentucky,” Cabinet for Economic Development, www.thinkkentucky.com. 197“Motor Vehicle-Related Facilities,” Division of Research, Cabinet for Economic Development, July 2, 2003, www.thinkkentucky.com. 198Information related to the Nissan plant is based on “Experts Say Economic Impact Will Be Astronomical,” The Mississippi Clarion-Ledger, March 1, 2003; “Lott Urges Preparedness in Luring 2nd Car Plant,” The Mississippi Clarion-Ledger, July 22, 2003; and “The Economic Impact of Nissan in Mississippi,” Executive Summary, Mississippi Development Authority. 199“Toyota Can Trace its Plant in Texas to Cowboys Game,” The Dallas Morning News, February 11, 2003 and “Benefits of Toyota Plant May Ripple Across Texas,” The Dallas Morning News, February 6, 2003. 200“Southern Hospitality,” Ward’s Auto World, August 1, 2002. Information on the increasing attractiveness of the South to these automakers in this section is extracted from this article. 201“Go West, South,” Ward’s Auto World, June 1, 2003.

The Drive to Move South, page 148 The Drive to Move South, page 149