Luxury models move down the assembly line at the Mercedes-Benz plant in Tuscaloosa County, which contributed to an auto production record in Alabama for 2012.
(Joe Songer/jsonger@al.com)
Alabama's three automakers combined to produce more than 880,000 vehicles last year, a 17 percent increase from 2011 and a record high level for the industry that kicked off nearly 20 years ago.
The plants operated by Mercedes-Benz in Tuscaloosa County, Honda in Talladega County and Hyundai in Montgomery each set their own output records last year, for a combined 880,114 vehicles statewide.
The automakers have been operating at a high level all year, and had actually surpassed last year's total output of nearly 750,000 vehicles -- the previous record -- well before the end of 2012.
But in the closing days of the year, they announced their official totals. Hyundai led the pack with 361,348 Sonata sedans and Elantra compacts, while Honda followed with 336,766 Odyssey minivans, Pilot SUVs and Ridgeline pickups, a total revised late last week.
Mercedes' total of 182,000 M-Class SUVs, GL-Class SUVs and R-Class crossovers is an estimate. The German automaker's official tally is not pinpointed until later this year by parent company Daimler AG.
Greg Canfield, secretary of the Alabama Department of Commerce, said the numbers are not surprising, considering all of the new capital projects and jobs announced by the automakers recently.
"It's obvious that the (automakers) in Alabama have been plowing back into their operations in the state by updating equipment and expanding the capacity of their production lines," he said.
Such moves have been fueled by growing sales for the Alabama-built models, he added.
U.S. auto sales have continued an upward trajectory in the recovery following the deep industry downturn of 2008 and 2009. In 2012, light vehicle sales reached nearly 14.5 million, the highest annual total since 2007.
While there are growing concerns about higher taxes and a slowing economy that could discourage car buyers, the outlook for the market is bright. Automotive forecaster R.L. Polk & Co. expects sales to reach 15.4 million this year and break the 16 million mark by 2015.
Mercedes launched Alabama's auto industry in 1993 when it selected Tuscaloosa County as the site of its only U.S. manufacturing plant. Honda, then Hyundai, along with a host of supplier companies, followed.
Here's at look at key 2013 developments for each Alabama automaker:
Mercedes: The company continues to prepare for the addition of the C-Class sedan to its assembly lines in 2014. Construction will be ongoing throughout this year for that project, as well as a capacity increase. Also this year, the plant will hire the bulk of the 1,000 new employees tied to the C-Class work.
Honda: The automaker will add production of the Acura MDX this year. The SUV will be the first Acura -- Honda's luxury division -- produced in Alabama. The plant is also adding jobs, expanding capacity and retooling the assembly line for the MDX.
Hyundai: This will be the first full year for a third shift that started in September, and the company says it will be key in helping meet high demand for its models. Hyundai set a U.S. sales record in 2012, as did both of the cars made in Montgomery.