Thursday, July 10, 2003
Daimler Chrysler has delayed its decision on whether to go ahead with a new truck plant near Savannah. The plant would manufacture Sprinter cargo vans. Nearly all cargo vans go into commercial use, where they are commonly used for cargo transport.
The market for cargo vans has slowed with the economy, and Chrysler's mangers are sharpening their pencils to see if the payback is sufficiently high to justify the investment. The company is still trying to determine whether to build the $700 million plant or continue importing trucks from Germany.
Although Savannah's EDpros are putting on a brave face, there's reason to worry. Cargo vans represent a small market. Sales of full-size passenger vans and cargo vans combined account for less than 2 percent of all new vehicle sales in the U.S. Ford and GM dominate the market, and Chrylser will have to go against some tough competition to build a market position.
Even worse, the market is soft. Total sales of cargo vans fell to 264,846 in 2002, down 20 percent from the five-year high of 318,458 reached in 1999.
Some Background on EDPro Weblog
The purpose of this weblog is to help economic development professionals -- EDPros -- keep up with the changes sweeping our profession. Strap on your goggles. It's a whole new game. There are no experts any more. The only place to learn about economic development is from other EDPros who are doing it.
One other point: the prevaling approach (paradigm, if you like) in economic development is shifting from competition to collaboration. There are a lot of reaasons underlying this shift, but here's the important insight: You, your community, and your region will do better by collaborating and sharing information.
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Speaking and workshops on Open Source Economic Development
As the idea of Open Source Economic Development starts spreading, more people are asking about it. Visit the I-Open web site to learn more. My colleagues and I are happy to explain the basic concepts in a talk or a workshop. E-mail Susan Alshuler if you'd like to learn more about workshops and speaking.
Background on Ed Morrison
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Chrysler delays decision on truck plant
