Will Nemak USA INC in Dickson Tennessee be shut down in the near future?

Answer 1

This is a difficult question and is totally dependant upon the volume comsumption of Nemak's Monterrey plant. If all open capacities in Mexico (and this includes the Monclova facility) are filled and there is still need for the output of the TN plant will the plant be viable long term. The hope is that the new Chrysler will succeed and the demand will stabilize and grow....but there is still the Fiat influence which may step in and source the demand from a Fiat owned plant in Brazil now under construction.

Nemak made a bad choice in volume reallocation when the TN plant was purchased, but this was their plans from the very beginning, regardless of Nemak Monterrey's statements to the contrary during many public meetings. This move was at the direction of Nemak's top officials with the knowledge and concurrence of US management in Southfield and Alabama.

The plant in Tennessee needs three things to happen

1. Chrysler / Fiat succeed and sales start climbing stateside, I believe this will happen eventually but weather or not it is soon enough is the real issue for Dickson...

2. Chrysler / Fiat purchase Dickson Plant from Nemak, and Wabash plant from whoever owns it now. Integrate the two into one effecient operation. Hopefully Nemak will need the cash due to the Alabama black hole and the overall automotive industry collapse. Nemak will remain aligned with Ford and GM. The reorganized Dickson facility would be aligned with Chrysler, Hyundia and new Fiat stateside products. The Dickson plant would be strategically aligned with the new Brazilian facility coming on line.

3. The Nemak management / Teksid leftover management is run off the job site at Dickson, particularly the individual who orchestrated the Alabama debacle and drove a stake in the Dickson plant's chest. Not to mention squandering 300 million dollars in capital investment at exactly the wrong time in exactly the wrong place (where he was spawned). Everybody knows exactly who that is. Once this occurs and a hard driving professional objective management team is in place in Dickson they could easily satisfy the Fiat/Chrysler/Hyundia customer and eventually compete with Nemak for Ford/GM business. The ultimate goal would be to drive Nemak back south of the border and relegate them back to being a low quality third world head supplier. As long as the Alabama carpet bagger remains in Dickson that plant's future remains in peril.