Ga. Loses To SC In High-Stakes Bidding War For Volvo Plant | WABE 90.1 FM

Ga. Loses To SC In High-Stakes Bidding War For Volvo Plant

May 14, 2015

Volvo picked South Carolina over Georgia and other states for the Swedish carmaker's first American manufacturing facility in a deal valued at $500 million.

Georgia lost out on its bid to host the first U.S. auto plant by Swedish carmaker Volvo.

Gov. Nathan Deal lobbied hard to bring the $500 million facility to Georgia, but South Carolina beat out the state for the plant, which is expected to produce 100,000 vehicles in its first year.

Volvo has not said why it picked South Carolina over the other states vying for the plant. South Carolina already has a BMW and Mercedes-Benz factory.

“Typically a car company or any company being lured by multiple states doesn’t say why it choose the one it did and specifically it doesn’t say why it didn’t go with the ones it didn’t,” Kelley Blue Book's Jach Nerad said during an interview about the decision.

“The last thing a car company wants to do in that case is alienate a state government or even the people of a particular state,” Nerad added.

Many times the decision comes down to money. "And incentives, how quickly a site can be cleared, getting zoning things through – all of that stuff becomes very, very important in making something like a big manufacturing plant happen,” Nerad explained.

Nerad offers more insight into Volvo’s decision, why the Southeast is replacing Detroit as an automotive hub and more on “A Closer Look.”