Gov. Bobby Jindal joined Louisiana Economic Development (LED) Secretary Stephen Moret and executives from V-Vehicle Company (VVC) Wednesday to announce the company will begin assembling cars in Monroe.
“What we are here to officially announce today is not a typical economic development project,” said Jindal. “Today, we are here to announce that through quick, aggressive action to pursue a transformative opportunity, we have a chance here in Louisiana to re-energize the U.S. auto industry. Indeed, this project also has the potential to transform the entire Monroe area and could be a game changer for the economy of northeast Louisiana.
The San Diego-based VVC has chosen the former Guide Corp. plant in Monroe, which has been closed for several years, as its new assembly site. The 450,000-square-foot plant currently occupies 189 acres of land. VVC plans to increase the size of the facility to about 750,000 square feet.
“The Monroe facility was chosen because it has the ideal infrastructure for this type of industry, combined with the strong worth ethic of the people of north Louisiana,” explained James Davison of Guideco Properties, who owns the property.
VVC plans to produce a “high quality, environmentally friendly and fuel-efficient car” for the U.S. market. The company’s goal is “to provide the American car buyer greater product value and a superior automotive experience.”
VVC Director of Design Tom Matano was on hand for Wednesday’s announcement. Matano designed the Mazda Miata, recently named by BusinessWeek as the “most iconic car of the last 25 years.”
Matano said the new car to be assembled in Monroe will be “another icon of American industry. I feel strongly this car will be an icon in 25 years or even sooner.”
VVC plans to create 1,400 new jobs at the expanded plant. Jindal said the average annual salary for these jobs will be about $40,000.
According to an economic impact analysis conducted by Louisiana State University, the 1,400 direct jobs will create an estimated 1,800 indirect jobs. The analysis also suggests VVC will inject $19.6 billion in new state economic output from 2010-2024.
“Every once in awhile, we are presented with an opportunity to throw long -- to move the ball down the field in a major way with a single transformational project,” said Jindal. “This is the kind of project we are here to announce today, and for that reason we were willing to pursue an extraordinarily aggressive approach to not only invest in a major economic expansion for the people of northeast Louisiana, but also a transformational project for the U.S. auto industry.”
State and local officials assembled a customized incentive package to help secure the project. If all performance requirements are met, VVC will receive a state incentive package worth about $67 million, which will fund improvements to and expansion of the facility. In addition, Louisiana FastStart will provide, at no cost to the company, customized workforce recruitment, screening and training for VVC and its on-site suppliers.
The LSU analysis estimates VVC and its on-site suppliers will generate more than $131 million in new state tax revenue over the first 15 years of the project.
“By deciding to help re-energize and re-invent the American auto industry in Louisiana, V-Vehicle is helping create a bright future for northeast Louisiana, our entire state, and, we hope soon, our entire country,” said Jindal.
Moret said this announcement “will have a lasting impact on northeast Louisiana and our state for many years to come. And it sends a clear message that Louisiana is a new frontier for business opportunity.”
