Gov. Jay Nixon today helped break ground on a new $42 million facility in Liberty that will assemble automotive parts to be used in the new Transit van being built at the Ford Motor Co. Kansas City Assembly Plant in Claycomo. The project by LMV Automotive Systems, a part of Magna International, will create 156 local jobs, the Governor said, and is the latest example of Missouri's resurgent auto industry sector.
"Missouri is leading the rebirth of the American auto industry, and you can readily see that in today's announcement and in the historic expansions announced last fall by Ford and GM at their Missouri plants," Gov. Nixon said. "Our hard work and commitment to the automotive industry in Missouri continue to pay dividends in long-term investment and good manufacturing jobs."
The LMV facility, scheduled for completion next April, will manufacture and deliver modular assemblies primarily for the nearby Ford plant. LMV Automotive is a subsidiary of Cosma International; the parent company of Cosma is Magna, the world's fourth-largest supplier of auto parts.
Missouri's gains in manufacturing have garnered national attention. In its recent listing of the 10 Most Entrepreneurial States, CNN Money said of Missouri and its number six ranking, "Move over, Detroit. The big guns of manufacturing have turned sweet on Missouri - and GM, Ford and even Boeing are opening or expanding factories here."
In 2010, Gov. Nixon called the state Legislature into special session to pass the Missouri Manufacturing Jobs Act, which contained new incentives specifically geared to Missouri auto manufacturers and suppliers. The Governor's leadership on the Manufacturing Jobs Act, along with his administration's direct and ongoing consultation with the leadership at Ford and General Motors, led to their expansion announcements last fall.
The Ford and GM expansions involve a combined capital investment of approximately $1.5 billion and the creation of 3,200 new auto manufacturing jobs.
"The major expansions by Ford and GM in Missouri are not only creating thousands of new auto manufacturing jobs at Claycomo and Wentzville, but are also helping boost the thousands of auto supplier jobs in our state," Gov. Nixon said. "That is exactly the case with LMV Automotive, which will be directly supplying for the new Transit van being built right here in Missouri."
"On behalf of Cosma International and Magna, I want to thank the state of Missouri and the cities of Liberty and Kansas City for their ongoing support and collaboration with this project," said Cosma President Tom Skudutis. "They have helped make it possible for us to invest and create jobs in this area, and we are excited about the opportunity to support our customers from this location."
The state of Missouri helped make possible the expansion of LMV Automotive Systems in Missouri through the authorization of economic incentives. The Missouri Department of Economic Development authorized $2,045,733 in Missouri Quality Jobs and $1.6 million in Missouri BUILD program tax incentives. The company can redeem the incentives only if it meets the strict job creation and investment criteria of each program.
In addition, the state is awarding a $1.5 million Community Development Block Grant to the city of Liberty to fund infrastructure improvements around the new building, and $500,000 in training incentives to the company.