Automotive

The Fast Lane to Growth and Productivity

For more than 80 years, the automotive industry has found Virginia to be a great place for business. Automotive and related firms invested more than $1.5 billion and created more than 10,000 new jobs in the Commonwealth during 1997-2006. Recent notable automotive announcements include the U.S. corporate headquarters of Volkswagen/Audi and Rehau.

Our strategic mid-Atlantic location offers an unparalleled transportation network and one of the largest shipping ports for automotive manufacturers and parts suppliers to utilize. Our highly productive and educated workforce is among the best in the nation. Our pro-business values and stable, competitive corporate tax rate offer one of the warmest business climates in the world. Our world-class reputation as a high tech corridor with leading research and development facilities throughout the state gives automotive companies access to leading advancements in technology and product testing.

Time and time again, factors such as these make Virginia a top location choice for the automotive industry.

Virginia is home to more than 180 automotive and automotive parts manufacturing facilities that employ more than 39,000 Virginians. From motor vehicle assembly to tire manufacturing, interior suppliers, brake systems, power trains and truck trailers, the automotive industry is a driving factor in Virginia’s economy. In Virginia’s Southwest region, Volvo Trucks employs more than 2,600 people in Dublin to assemble two distinctly different lines of heavy trucks—Volvo and Mack. Volvo spent $140 million to expand the New River Plant, its largest truck manufacturing facility in the world, in order to successfully relocate Mack Truck assembly operations from South Carolina in 2003. The current product mix includes CXN and CHN models assembled for Mack and VN Series and VHD models assembled for Volvo.

Virginia’s supportive government, from the state, regional and local levels, continues to partner with its automotive manufactures to ensure the industry thrives here. Companies also have the satisfaction of knowing their employees can live in an area where the quality of life is unsurpassed. So the next time you’re considering a new location for your company, look no further than Virginia.

Virginia’s Key Automotive Advantages

• Strategic Mid-Atlantic location and an excellent transportation infrastructure
• One of the nation’s leaders in labor and manufacturing productivity
• Stable, competitive corporate tax rate of 6%—not increased in 30 years
• “At will” and “Right-to-work” employment practices
• Streamlined environmental permitting process using federal minimum standards
• Nationally recognized state-funded customized technical training and recruitment programs to meet labor needs and timelines of the automotive parts manufacturers
• Reliable energy sources at competitive rates—average industrial electric rate less than 4 cents per kilowatt hour
• Average workers’ compensation insurance premium—fifth lowest in the nation
• Average unemployment insurance cost—second lowest in the nation
• Six general-purpose foreign trade zones designated by the U.S. Department of Commerce
• Home to the Virginia International Raceway, the Langley Full Scale Wind Tunnel and the Smart Road project at Virginia Tech

Our People Make the Difference
Virginia has a productive, educated and skilled workforce that’s ready to work for the automotive industry. Virginia ranks in the top 10 states in labor productivity. It has the Southeast’s largest concentration of doctoral scientists—more than 18,900. One-third of all Virginians have bachelor’s or advanced degrees. Each year, Virginia’s colleges and universities award 3,200 degrees and certificates in engineering related disciplines. Our workforce grows on average by 17,000 skilled military separatees each year, many having expertise in automotive related occupations. Many corporate and automotive companies partner with local community colleges to design specialty training and apprenticeship programs to meet the ongoing needs of technology-driven production enhancements.

A Place to Call Home
Virginia’s quality of life is unsurpassed. Healthcare, educational and recreational benefits for families rank among the finest available anywhere in the United States. Housing prices remain below the national average, and personal taxes are low. The state’s mid-Atlantic location offers a desirable, moderate climate with four distinct seasons and access to Atlantic beaches and the Blue Ridge Mountains. It is a region rich in history, including Jamestown, Colonial Williamsburg, numerous Civil War sites, Mount Vernon and Thomas Jefferson’s Monticello, to name a few.

A Leading Gateway to the World
Virginia’s strategic mid-Atlantic location and state-of-the-art transportation network offer companies like yours an unparalleled operating environment. Six interstate highways provide quick access to Northeast, Southeast and Midwest markets, including the I-65/75/85 automotive manufacturing corridor. Washington Dulles International Airport is the world's fastest growing gateway airport, with direct daily service to Europe and Asia. Two of the largest rail service providers in the U.S., CSX Corporation and Norfolk Southern Corporation, have extensive rail infrastructure throughout Virginia.

Virginia also offers one of the largest and most successful ports on the East Coast. Trading with more than 100 foreign countries, the Port of Virginia offers four general cargo terminals in the Hampton Roads region. As the largest intermodal facility on the East Coast, the port’s general cargo tonnage exceeded 13.9 million tons in 2003. By 2007, Virginia’s automotive industry will benefit from the first major private container terminal on the East Coast. The 450 million investment by Maersk subsidiary, APM Terminals, will solidify the Port of Virginia as the second leading port destination on the East Coast.

Automotive machinery and parts are among Virginia’s top exports, which are shipped to leading destinations including Italy, Belgium, Brazil, Netherlands, France and the United Kingdom. Over 50 shipping lines—including Maersk Sealand, “K” Line America, and Zim Line—provide regular service from Hampton Roads to get your product to its destination worldwide.

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Foreign Trade Zones
A Foreign Trade Zone is a site within the U.S., in or near a U.S. Customs port of entry, where foreign and domestic merchandise may enter without a formal Customs entry or payment of Customs duties or government excise taxes. In general, FTZs offer a number of ways for users to enjoy custom duty savings as well as flexible methods of handling merchandise. Virginia contains several FTZs. At the Port of Virginia, Foreign Trade Zone 20 is one of the largest FTZs in the country. Existing warehouse space is available within the zone and undeveloped property is available for public and private use. The Commonwealth can also designate additional FTZ subzones as demand and shipping increase.