The State Journal, April 21, 2005
When Hyundai American Motors was looking for a place to build its first U.S. manufacturing plant, states throughout the south lined up and started bidding. Alabama, Kentucky and several other states all competed against each other to win the $1.1 billion plant and the 2000 to 4,000 jobs that came with it. But West Virginia didn't make it to the final selection round and may not have ever really been in the running.
Bob Cosmai, Hyundai American Motor's president, said he hopes that won't happen again if the company builds another plant in the next few years. Cosmai, a graduate of Marshall University, said although his company has no plans to open any new plants right now, he would like to see West Virginia in the competition for new projects. It would be good for the state, he said. And it would be good for West Virginia's residents.
"Geographically, (West Virginia) is in a great spot," Cosmai said. "It makes as much sense as Ohio or Kentucky. The labor force is intact. I think it would be good."
Last week, Cosmai returned to West Virginia to be honored as one of Marshall's distinguished alumni. But his visit was not limited to tours of the university and Huntington, which he hasn't seen since graduating in 1971. Cosmai also used the visit to meet with Gov. Joe Manchin and his wife, Gayle Manchin, as well as business and development leaders, to talk about economic development efforts in West Virginia and whether Hyundai could have a future in the state.
"We have no plans (for further expansion) now, but I told the governor that if we have further expansion plans, it may be something for West Virginia to consider," he said.
And Manchin appears to be more than willing to pursue it. His spokeswoman, Lara Ramsburg, said the governor and West Virginia Development Office definitely will put together a proposal when or if the company decides to expand. "The governor wants to be at top of list when Hyundai is looking to expand again," she said.
She said Cosmai's ties to Marshall and his familiarity with the state could only help West Virginia land a plant.
Steve Spence, executive director of the Development Office, agreed. He said personal relationships are very important in economic development deals.
Hyundai first announced plans to build a manufacturing plant in America in 2000, three years before Cosmai took over the helm of American operations for the Korean company, according to Spence. He said West Virginia pursued the plant initially with Sen. Jay Rockefeller, D-W.Va., Gov. Bob Wise and the Development Office all trying to sell the state's attributes to Hyundai. But West Virginia did not make it past the initial rounds of selection.
"The reason? West Virginia didn't have a site ready to go," Spence said. "Alabama had 1,700 flat acres ready to go."
Cosmai said the state shouldn't dismiss future plant locations just because of the rugged topography. "Topography is a small issue," he said. "The bigger issue is the whole state's business environment. ... There are a lot of states with flat land that we didn't go to."
Instead, the company went to Alabama, which had both flat land and proven success with several auto manufacturers.
After three years of construction, the Mobile plant started making Sonata sedans in March. It is expected to send out the first vehicles to Hyundai dealers in the next few weeks. The plant also will produce a redesigned Santa Fe SUV, but that vehicle has not been unveiled yet.
Cosmai said he hopes Hyundai can sell 500,000 cars in the U.S. by the end of the year and sell more than a million cars and trucks each year by the end of the decade. To reach that goal, he said, the company might need another American plant. The Alabama facility will be able to produce a maximum of 300,000 vehicles.
That could create an opportunity for West Virginia, Cosmai said. But since he's not involved in final decision-making for potential sites, he can't guarantee anything.
Cosmai said West Virginia has taken dramatic steps in recent years and months to address some of the concerns businesses have about locating in West Virginia. He specifically cited the state's efforts to pass tort reform and fix the workers' compensation system.
"You've made tremendous progress," he said.