Leading Canadian-based automotive firm, Magna International, is set to make a significant mark on Tennessee’s thriving automotive industry with its latest announcement. The company revealed plans to invest a staggering $790 million in constructing three cutting-edge manufacturing facilities within the state. Magna’s ambitious project aims to have all three plants fully operational by 2025.
The first of these facilities will be established in Lawrenceburg, a quaint town nestled between Memphis and Chattanooga. The other two plants will be strategically located within Ford’s Tennessee manufacturing campus, aptly named Blue Oval City, situated northeast of Memphis.
Magna International has a diverse presence in various sectors of the automotive industry, supplying components to a wide range of vehicles, including those powered by fossil fuels and electricity. Notably, Magna’s subsidiary, Magna Steyr, is a renowned vehicle manufacturer specializing in electric vehicles, such as the Jaguar I-Pace and Fisker Ocean.
The Lawrenceburg facility will focus on manufacturing frames, while the two plants at Blue Oval City will concentrate on producing battery enclosures, seats, and other essential components tailored for Ford vehicles. This localization of components is expected to streamline production processes for Ford, reducing build times and cutting costs, a win-win scenario for the American automaker.
Ford is highly optimistic about the potential of Blue Oval City, projecting an impressive capacity to produce up to half a million electric vehicles annually once the operations are up and running.
In addition to the evident benefits for Ford, Magna’s expansion in Tennessee will also prove advantageous for the local economy. The combined facilities are expected to create around 1,300 new jobs in the region, providing a substantial boost to the local workforce.
The investment by Magna further solidifies Tennessee’s status as a burgeoning automotive powerhouse. With the likes of GM, Volkswagen, Nissan, and now Ford, all establishing a strong presence in the southeastern state, Tennessee’s influence in the global auto industry continues to grow.
As construction commences on these state-of-the-art facilities, industry experts are eager to witness the transformative impact they will have on Tennessee’s automotive landscape and the broader implications for the electric vehicle market.
