Thursday, November 03, 2016

Ficosa opens a new factory for rear view mittors in Tennessee, USA - Some thoughts about production costs in high income nations


 Ficosa, who are one of the major manufacturers of rear view mirrors in vehicles on earth have opened a new facility in America. With an investment of over 50 million dollars, the new plant is equipped with the sector’s latest technology, becoming the most advanced in Ficosa’s global portfolio. The Cookeville, Tennessee facility, which has a total surface area of 270,000 square feet, is dedicated to producing rear view systems for automotive manufacturers such as Nissan, Ford, Volkswagen, Fiat Chrysler and General Motors. 


As a leader in painting and injection processes, the plant has an average production capacity of 4.5 million rear view mirrors and will add nearly 500 new and advanced manufacturing jobs in the U.S. and Tennessee. This cutting-edge production center, whose construction started in June 2015, celebrated its grand opening last Friday, October 28, with the presence of Rep. Diane Black, Cookeville City Mayor Ricky Shelton, Putnam County Executive Randy Porter, and other main authorities of the area and key automotive manufacturers. 

So far from South East Asia and Malaysia. So why am I interested in covering this story? Well, its simple. A factory is being built and it will supply regionally as well as globally. This would mean that there could even be some cars in this region which will be using Ficosa rear view mirrors made from this factory which is located in the heartlands of America. 

With minimum wage being paid, the higher costs of living over there and a factory can still be built supplying a very large number of rear view mirrors to the major manufacturers in the United States of America and Mexico. Let's include those in Brazil too. 

Now imagine if such a manufacturing facility was set up here.More jobs - at least 500 new jobs were created here. More foreign capital inflow - the factory is a USD50million investment. Imagine if this were here. Wouldn't it be a good thing?

So what I am saying that companies can set up new facilities in countries where the standard wage is higher, production costs are higher due to higher standards of living. There are other factors involved too aside from the two mentioned above. Being competitive it just isn't about cost and wages. Local companies and the authorities should do more research and see how this is being done in true high income nations. 

PRESS RELEASE
Ficosa opens a new state-of- the-art plant in Tennessee

With an investment of over 50 million dollars, the new plant is equipped with the sector’s latest

technology, becoming the group’s most advanced production center worldwide

The new facility, dedicated to producing rear view systems, is bringing advanced manufacturing jobs

to the state of Tennessee

Detroit – Oct. 31, 2016 – Ficosa, a top-tier global provider devoted to the research, development,

manufacturing and marketing of high-technology vision, safety, connectivity and efficiency systems for the

automotive and mobility sectors, has boosted its presence in the United States by opening a new state-of- the-

art manufacturing facility in Cookeville, Tennessee. With an investment of over 50 million dollars, the new plant

is equipped with the sector’s latest technology, becoming the most advanced in Ficosa’s global portfolio.

The Cookeville facility, which has a total surface area of 270,000 square feet, is dedicated to producing rear

view systems for automotive manufacturers such as Nissan, Ford, Volkswagen, Fiat Chrysler and General

Motors. As a leader in painting and injection processes, the plant has an average production capacity of 4.5

million rear view mirrors and will add nearly 500 new and advanced manufacturing jobs in the U.S. and

Tennessee. This cutting-edge production center, whose construction started in June 2015, celebrated its grand

opening last Friday, October 28, with the presence of Rep. Diane Black, Cookeville City Mayor Ricky Shelton,

Putnam County Executive Randy Porter, and other main authorities of the area and key automotive

manufacturers.

“Today marks a great day for Ficosa and Tennessee,” said Javier Pujol, CEO of Ficosa, during the event. “This

new facility is a strategic move that allows the consolidation of key operations and enables a further future

growth in one of the largest automobile markets in the world, where Ficosa has been present since 1994. By

opening these new premises we are not only improving the group’s efficiency and operational capacity in the

region, but also reinforcing our commitment to bring more advanced manufacturing jobs to the U.S. and to help

lay the foundation for a more successful manufacturing future in the state of Tennessee.”

The new plant is bringing hundreds of new jobs to Cookeville, with new job positions opening up daily, from

production and project managers, technicians and engineers, to human resource specialists and assembly and

warehouse workers. Those who are interested in applying for a job should send their resumes to

jobscookeville@ficosa.com.



Press release

In addition, Javier Pujol explained that the Cookeville’s facility also strengthens the company’s business alliance

with Panasonic – which started in 2015 – in North America (United States and Mexico). “We are boosting a plan

to align the industrial strategy of Ficosa with Panasonic in the region of North America, in order to accelerate the

launch of new products in the areas of connectivity, efficiency and safety. This plan allows us to support the

growth of the local market and increase our capacity in R&D in mirrors, shifters and new technologies that we

are developing together with Panasonic, bringing together our technological capabilities with the know-how in

electronics of the Japanese company.”

In June 2016, Ficosa North America was awarded four contracts from two American OEMs to produce

8,900,000 units of rear-view mirrors over a period of five years. Three of the four orders will be produced at the

new Cookeville’s plant, with an estimated economic value of 460 million dollars. Production on those contracts

is scheduled to start first quarter of 2018.

About Ficosa North America

Ficosa International began operating in the United States in 1995, through a technical-commercial office in Michigan. Since

then, the company has expanded its capacities for the development of projects for the North American market, with the

creation of a test laboratory in 1996, a CAD department in 1997, and a prototype laboratory in 1998. In 2000, Ficosa North

America consolidated its engineering center with a new headquarters in Madison Heights, Michigan.

About Ficosa International

Ficosa is a global company devoted to the creation of high-technology vision, safety, efficiency and connectivity solutions for the industry, with the desire to contribute to society through our commitment to technological innovation, human values and energy efficiency. Founded in 1949 and based in Barcelona, Ficosa currently has more than 9,700 employees in 18 countries worldwide in Europe, North and South America and Asia, with consolidated sales of 1.112 billion euros in 2015.

The rear view system (interior/side mirror) is Ficosa’s main business, known worldwide and recognized by top global OEMs.

For more information, visit www.ficosa.com.

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