Tom Ballard
Director of Partnerships, Oak Ridge National Laboratory
Oak Ridge, Tennessee

1. One important role is the “Three C Strategy”—convene, connect and champion, which many Southern states are doing. The states have convened stakeholders. They have supported efforts to better connect these disparate players. Finally, they have championed the industry as a major driver in many Southern states.
2. A second important role is a fourth C—catalyze. States can play an important role, as Tennessee Governor Phil Bredesen has, in creating critical activity around topics of significant interest to automotive companies.
3. The final thought is to focus on incentives that help not only automotive companies but also those that aspire to be in their supply chain. An example of this activity is Tennessee’s super incentives for Volkswagen-designated suppliers.
   

The global automotive industry is still working through an interesting and challenging phase. Production and sales volumes are down in established markets, whilst new markets that tend to favor joint ventures are growing rapidly. Also, new technology requirements such as electric drive systems (plug-in hybrids, battery electric, regenerative braking etc.) and fuel economy legislation are driving tough choices internally at car companies and suppliers. The result is a diversity of strategic directions and cautious expansion. The best approach to attracting future investment is undoubtedly a strong focus on research capabilities and workforce skill levels. Such investments are realistically a longer term approach to be established during this challenging phase.

Bruce Lambert
Executive Director, Institute for Trade and Transportation Studies
New Orleans, Louisiana

1. Recognize that site selection must be multimodal (with access to interstates and rail activities) for the large plants. This includes not only local transportation infrastructure, but also broader regional networks.
2. As foreign producers continue to rely heavily upon modular production, which will still involve importing certain high value components that allows foreign producers to keep some jobs in their respective home markets, the region’s ports remain critical to the automakers long term success.
3. Supplier firms will locate based on other criteria that may not match that of the final assembly plant, so the anticipated clustering may not be in close proximity to the site but highway transportation will be critical for these suppliers to meet their delivery objectives.

David M. Trebing
General Manager, State and Local Relations, Daimler
Washington, District of Columbia

1. Adopt policies that encourage innovation. The first step is to ensure "original thought" occurs in the US. This requires policy makers to encourage companies to make long-term investments in research and development, through supportive tax structures (i.e., R&D tax credits), and creating public/private "think tanks" that are incubators of innovation.
2. Ensure the economic environment is conducive to investment. The second step is to ensure the investment is made in the US. States should adopt rationale tax policies, workers compensation rules, prudent tort reform, etc.
3. Ensure a well-trained, globally-competitive workforce. If the students aren't globally competitive, how can the industries they enter as employees be?