tmasc update

Strategic Regional Economic Development: The Texas-Mexico Automotive SuperCluster (TMASC)

David MarquezExecutive DirectorBexar County Economic Development

October 1st, 2009Texas Economic Development Council Annual ConferenceSan Antonio, TX

Developed by Bexar County in Collaboration with TMASC Strategic Partners

Economic Stability | Market Trends | TMASC Evolution

2

Strength Amid the Recession

New York Times at www.nytimes.comSource: US Bureau of Labor Statistics

Texas Economy Outperforms Nation’s - Jobs Added/Lost

State Jobs Added/Lost12/07 - 12/08

Texas +153,700

California -257,400

Florida -255,200

North Carolina -120,000

Source: U.S. Bureau of Labor Statistics

Texas Economy Outperforms Nation’s - Economic Growth

Year Texas U.S.

2005 3.2 3.1

2006 4.1 2.8

2007 4.5 2.1

2008 4.2 1.9

2009 1.8 -0.9

2010 1.9 1.0

2011 3.8 2.9

Source: Texas Comptroller

CNBC’s Top States for Business 2009

State(Overall)

Economy(Rank)

Transportation Tech & Innovation

Workforce

1. Virginia 7 10 12 8

2. Texas 1 1 3 14

3. Colorado 5 36 11 12

4. Iowa 4 31 24 21

5. Utah 14 34 26 9

Source: CNBC

Continued Corporate Investment in the Region2009• Caterpillar Inc. in Seguin; $170 million

• Medtronic in San Antonio; $23 million

• Tianjin Pipe Company in Corpus Christi; $1 billion; 300-600 new jobs

• Union Pacific San Antonio Intermodal Facility; $120 million

• Albany Composites in Boerne; $42 million

• General Dynamics Advanced Information Systems; $1.9 million

• L-3 Communications in Waco; $10 million

• Baker Petrolite in Kilgore; $20 million

Lone Star RisingGlobal Recognition

Changing Geography of Assembly

* Radius centered on 430 mile main transportation corridor from Laredo to Arlington.SOURCE: ELM Guide, TIP Strategies, Inc., research

9

Global Manufacturers

• Almost 900,000 units per year• More than 18,000 workers by 2010

NOTE: Shaded region represents the NAFTA Highway.

SOURCE: ELM Guide, TIP Strategies, Inc. research 10

Core, Ancillary, and Support Operations for Automotive Manufacturing

Source: State of Texas, Office of the Governor 2005

Assembly Plants

• General Motors• Chrysler• Navistar - International• BAE Systems• PACCAR - Peterbilt• Caterpillar

• Marcopolo

• Toyota

• Daimler - Freightliner

12

Results: Toyota Moves Future Tacoma Production to San Antonio

Preserve and stabilize existing regional suppliers

New direct investment - $100 million

New direct jobs created - 1,100

Job multiplier - 1:5

Buzz:Chrysler to Make Fiat in Mexico (WSJ Aug 2009)

Chrysler considering expansion of current Toluca, Mexico plant

Small car, fuel-efficient engine, new technologies

Target market: new-car shopper, 20-35 age bracket

Location based on Western Hemisphere market access

Economic Stability | Market Trends | TMASC Evolution

15

North American Output

Source: CSM Worldwide, 2009

OEM Capacity Utilization

Source: CSM Worldwide, 2009

Cash-for-Clunkers Program

Top Trade-Ins Top New Purchases

1. Ford Explorer 1. Ford Focus

2. Ford F150 2. Honda Civic

3. Jeep Grand Cherokee 3. Ford Escape

4. Chevy Blazer 4. Ford F-150

5. Jeep Cherokee 5. Toyota Camry

6. Chevy C/K 1500 Series 6. Toyota Corolla

7. Ford Windstar 7. Honda CR-V

8. Dodge Ram 1500 8. Chevy Silverado

9. Mercury Grand Marquis 9. Honda Accord

10. Dodge Grand Caravan 10. Hyundai Elantra

Source: Edmunds.com, September 18, 2009

Growth in Driving Age Population (16-85)

Source: IHS Global Insight, 2009

• Prius and Civic Hybrid among best-selling hybrids

• Escape & Highlander lead hybrid SUV sales

• GM began producing hybrid Tahoe, Yukon, Escalade in Arlington, Texas

• Micro models (Nissan Versa, Honda Fit) popular

Cash for Clunkers purchases

The Rise of the Hybrid, Electric Car, and Micro Car

SOURCES: Edmunds.com 20

Standard Technological Features

Options for Customization

Emerging Manufacturers

TeslaV-VehicleMagnaFiskerWheego

$528 Million U.S. Loan Gives Fisker Plug-In a Jolt

Source: Automotive News, September 28, 2009

Oklahoma Company to Assemble Wheego Whip

Source: Associated Press, September 14, 2009

Asian Interests Chongqing ChanganBYD AutoChina FAW Group

Regional Snapshot | Market Trends | TMASC Evolution

27

www.txmxautomotive.com

NewsUpdatesDiscussions

www.txmxautomotive.com

www.twitter.com/TMASC

www.linkedin.com

TMASC EvolutionA Visual Outline of Progress and Goals

!""#$%$!""& !""#$%$!""& !""'$(

!"#$%&'(!))*+,-

'()*+*),-.$

/(0.123(4).1

/)15).67

.!/01

23),*+*#

89'/2

:.-.3*0+.;)

89'/2

'44*<,5),*;

!"%4)*+,-(5

6)7%8+*9),*

✓

JapanChinaKoreaIndia

GermanyFinland

U.S.

State of Texas SurveyStrategic Marketing of TMASC

?

?

David MarquezExecutive DirectorEconomic DevelopmentBexar County

dmarquez@bexar.orgT: (210) 335-0667www.linkedin.com/in/marquezdavid

www.bexar.org/ed

Special thanks to T.I.P. Strategies and the City of San Antonio

34

TxMxAutomotive.com

twitter.com/TMASC

linkedin.com (search for the TMASC group)