MG's BOLD MOVE TO OKLAHOMA

China's Nanjing Automotive Group, according to numerous industry sources, will announce on 12 Jul 06 that it plans to base its global headquarters for sales, marketing and distribution outside Asia in Oklahoma City and will construct a plant in Ardmore, Oklahoma, to assemble a redesigned TF Coupe.

Nanjing Automotive obviously wants a crack at the lucrative US market . . . and just about no place is more "American" than a "Red state" in the vast US heartland like Oklahoma. (In fact, missionary Allen Wright coined the word "OKLAHOMA" out of two Choctaw words -- "ukla" meaning "man" and "humá" meaning "red." In print, Oklahoma first appeared in a 1866 Choctaw treaty.)

Although GM recently turned its back on Oklahoma, shuttering its SUV assembly facility in Oklahoma City, Oklahoma is an excellent location for Nanjing's U.S. operations.

Like most sunbelt states that attract "transplant" assembly facilities, Oklahoma is a "Right-to-Work" state. The UAW will have a more difficult time worming their disruptive and expensive ways into an Oklahoma plant than one located in the Midwest or coastal regions with stronger traditions of unionization.

Oklahoma is a low-cost state for operations. The huge real estate price escalations which have occurred in many major urbanized sections of the country have mostly bypassed Oklahoma. Oklahoma has abundant land, labor and other natural resources attractive to manufacturing.

Ardmore, Oklahoma, is a particularly attractive location for a manufacturing facility. Only about 100 miles north of the Dallas-Fort Worth Metroplex, Ardmore is already home to Michelin and other manufacturers. It has excellent truck and rail access. Yet Ardmore retains the friendly middle-American "Red state" small-town feel.

Ardmore is even fairly close proximity to some "sports car" friendly "test" roads, such as the U.S. 77 pass through the Arbuckle Mountains and the Talamina scenic drive . . . . Oklahoma also has more unmolested miles of the iconic "Route 66" than any other state.

Oklahoma also has an excellent system of vocational-technology education centers that an OEM can tap for skilled labor and advanced training programs.

Oklahoma City, as well, is an excellent location for a OEM sales, marketing and distribution center. Oklahoma City's central location, low overhead, abundant commercial space, close proximity to two signficant universities of national stature, as well as a host of smaller academic institutions, and high quality of life all combine to make Oklahoma City an attractive business center. Moreover, Oklahoma City's close proximity to the SCCA's new HQ may have a special importance to MG as it may seek to reestablish itself as a grassroots sports car in the US.

If they can build BMW's in Spartanburg, South Carolina, they CAN build MGs in Oklahoma. If Carlos Ghosn can base Nissan's US HQ in Nashville with success, undoubtedly Nanjing will be able to effectively base its non-Chinese HQ in the "Sooner State."

BOLD MOVE, NANJING!