ATS manufactures cast aluminum wheels for luxury cars.

Hot Wheels Come to Auburn

When Stahlschmidt & Maiworm, a subsidiary of Germany's ATS-Group, decided to build a North American manufacturing base a few years ago, the maker of cast aluminum wheels for luxury automobiles was open to possibilities in the U.S., Canada and Mexico. The company, which now prefers to use ATS as its name in the U.S., formed in 1969. In its manufacturing process, ATS heats aluminum ingots to 780 degrees Celsius (1,436 degrees Fahrenheit), subsequently melting them to form these high-end wheels.
        A long-time supplier to DaimlerChrysler and its predecessors, ATS began considering a North American operation in the late 1990s at the prodding of Mercedes, its largest customer.
        "When Mercedes moved to Alabama, they put the leverage on their key suppliers to follow," says Greg Socks, chief operating officer for the ATS Auburn operation.

An exhaustive site selection process by German wheel maker ATS resulted in a safe landing in the Auburn Technology Park for its $40-million project.

        ATS worked with a German consulting firm in the early days of its search, but then decided to go it alone with the assistance of the Alabama Development Office and the Economic Development Partnership of Alabama, Socks says. During this period, DaimlerChrysler used its influence to push for Alabama, he says.
        As far as auto manufacturing goes, "DaimlerChrysler really opened the door for Alabama and surrounding states," Socks says. ATS looked at about 30 sites around the Southeast before narrowing it to about 10 in Alabama. Eventually, it came down to Auburn and Tuscaloosa, due to their proximity to DaimlerChrysler and other potential customers.
        "Within 250 to 300 miles, there is enough critical mass to support the business plan for the plant," Socks says. He also cites these advantages of the Auburn site:
        • Proximity to ports to bring in supplies and equipment.
        • Interstate highway access.
        • A relatively close international airport (Atlanta Hartsfield) where executives and technicians can fly in and reach the plant after a short drive.
        The presence of Auburn University's College of Engineering is another major plus, Socks says, noting that the university's material science program has a global reputation. Prevailing wages in the Auburn area also fit in with the ATS plan. During its site selection process, ATS interviewed area industries to see where its projected pay scale fit in.

AIDT Has Major Role In Auto Industry Recruitment Alabama Industrial Development Training (AIDT), part of the state's two-year college system, functions as a major incentive for industry considering locating in Alabama. Operating from three permanent centers in Montgomery, Huntsville and Mobile, as well as project-based facilities for Boeing in Decatur, Honda in Lincoln and Mercedes-Benz in Vance. AIDT, which coordinates about 75 training projects at any given time, also uses 38 mobile training units customized for company needs. An AIDT instructor displays assessment equipment at the Honda Training Center in Lincoln, Ala.         "We sit down with a company when they commit to create jobs here and find out what type of jobs and the qualifications needed for the jobs," says Phyllis M. Wesley, AIDT communications coordinator. "Then, we plan from there. Once we recruit people with these qualifications, we assess them to see if they can use their existing skills, see if they demonstrate ability to learn new things and see if they will be able to do the work the way the new employer wants it to be done.         "We do whatever it takes. Some-times a company has a facility for training. Or there may be a nearby college campus that has training equipment. Our job is to help each company hire the best work force."         Wesley says AIDT is helping develop the curriculum for a high school apprentice program Mercedes recently started.

        "We find out what the area's wage base is and the benefit load," Socks says. "That can weed out a lot of areas. We also look to see if there are unions in the area or if there is a union mentality." Socks notes the paucity of unions in the Southeast gives the region a leg up in recruiting industry.
        Socks, who previously led the start-up of two Briggs & Stratton plants, says Auburn is also a winner in the ever-important quality of life consideration.
        "You have to be able to attract and retain top people," Socks says. "Alabama, compared to other states, offers a lot in this area. A lot of Auburn engineering graduates like to come back here and work, but there's not enough work for them all."
        Socks says the site decision ultimately turned on the perception that the Auburn community would support ATS over the long haul. He praised the city's professional approach.
        A rigorous screening and training process for prospective ATS employees began in March with the supervision of Alabama Industrial Development Training (AIDT). During the process, ATS and AIDT will assess basic skills of applicants, introduce them to basic foundry work and teach them how to read blueprints.
        ATS, which broke ground for its plant in April 2002, is on schedule to begin production in July and will eventually produce 2.2 million aluminum wheels per year. In addition to Mercedes, ATS will supply wheels to BMW, Nissan, VW Mexico and Hyundai.
        The Auburn site has room for expansion and the facility can essentially be doubled, Socks says, adding that the company has long-range plans for more plants in North America.