Georgia welcomes growth in auto parts manufacturing, new factory serves as OEM supplier

A new auto parts manufacturing facility is set to open in Georgia next year as repairers and OEMs continue to face long backlogs of parts orders.

Seoyon E-HWA, a global parts maker, will invest $76 million in a Chatham County factory that will produce interior and exterior parts, Gov. Brian P. Kemp announced this month.

It will be the company’s second facility in the state.

The news comes less than a year after Hyundai Motor Group announced plans to build its first US electric vehicle and battery manufacturing facility in Georgia, creating 8,100 new jobs.

“With its second facility in Georgia, Seoyon is committed to nearly doubling the number of jobs it supports in the state and expanding its partnership with our business community,” said Department Commissioner Pat Wilson of Economic Development of Georgia.

“As expected, Hyundai’s new EV facility is creating an experienced and dedicated supplier network in the region, adding to the state’s industry expertise and shaping a largest skilled work This level of growth provides our industries with the foundation for future success, and we are excited to work with our many partners across the state and near Savannah to create the jobs of the future “.

Meanwhile, Rivian is working to build a $5 billion plant east of Atlanta that will be capable of producing up to 400,000 vehicles a year.

Georgia is positioning itself as a hub for the electric vehicle industry; More than 35 related projects totaling $21 billion in investments have been announced since 2020, the state said in a press release.

The new Seoyon E-HWA plant is expected to create 740 new jobs, with about 500 of those jobs slated to be permanent.

OEMs it supplies parts such as door trims, headliner, seats, C/PAD and bumpers include Hyundai, Kia, Mercedes-Benz, Ford and Volkswagen.

The announcement of a new parts manufacturing facility comes amid a backlog of parts orders.

It reported last month that shortages of computer chips as well as shortages of other auto parts “continued to hamper” the US auto industry last year and contributed to a decline of 8% in vehicle sales compared to 2021, the lowest level in more than a year. decade

Automakers reported earlier this month that they sold 13.9 million cars, trucks, SUVs and vans in 2022, while parts shortages limited factory output amid strong demand of new vehicles. It was the lowest sales figure since 2011, when the economy was recovering from the Great Recession.

Manufacturers in the southeastern United States have been under scrutiny recently, with the Occupational Safety and Health Authority recently announcing that it would extend its auto parts inspection program for another four years.

It extended the program’s schedule after inspections from 2014 to 2022 yielded 793 citations, Bloomberg reported.

Within the used car sector, parts shortages have delayed repairs for months across the country and extended the duration of vehicle leases.

Enterprise reported that length of hire (LOR) increased to 18.7 days in the fourth quarter of 2022 and was almost double compared to April 2019 before the pandemic, when the LOR was 11.8 days.

“While the fourth quarter of 2022 continued the return to the historical trend, the results themselves continue to be weighed down by supply chain disruptions, parts delays, collision repair delays and ‘technician shortage,’ Enterprise said. “With the complexity of vehicle repairs only increasing, for both internal combustion engine (ICE) and battery electric vehicle (BEV) models, the entire industry needs to be involved to ensure that all businesses related to ·lisions are aligned, not just for procedural solutions, but to ensure our mutual customers receive safe and appropriate repairs, an excellent experience and peace of mind.”

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(Courtesy of iStock)

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