Question: answer the two discussion questions please Article 1: OM in the News: Why Tennessee Hits the Electric Vehicle Sweet Spot OCTOBER 20, 2021 tags: auto
answer the two discussion questions please
Article 1: OM in the News: Why Tennessee Hits the Electric Vehicle Sweet Spot OCTOBER 20, 2021 tags: auto industry, electric vehicles, incentives, location decisions by Barry Render Tennessee is emerging as a leader in a national scramble to develop electric vehicle and battery production, as states compete to woo multibillion-dollar investments from auto companies pivoting away from the combustion engine. Ford and South Korean battery maker SK Innovation recently said they plan to develop a large complex to make EVs and batteries there. That follows similar investments made by GM and VW to add EV production at their Tennessee assembly plants. Ford's real-estate scouts began their search early this year by looking at 85 potential locations across more than a dozen states. Ford's checklist included a large empty property, so Ford could move quickly without having to clean up or retrofit an existing facility; cheap and reliable energy derived from renewable sources; access to rail and interstates; and reasonably close proximity to Ford's other assembly plants-all factors we discuss in Chapter 8 of your text. Tennessee has stepped out in front in large part because of yearslong efforts by the state and the Tennessee Valley Authority, which provides power to the region, writes The Wall Street Journal (Oct. 16-17, 2021). The state promoted its extensive workforce-training programs, a right-to-work law, and proposed $500 million in incentives. The TVA offered inexpensive, reliable energy and at least $100 million in power upgrades and other incentives. Energy costs are a big consideration for the battery factories because of the immense amount of electricity they use: 5 times more than in a typical auto assembly plant. TVA charges some of the lowest industrial energy rates in the country. Tennessee made its mark on the auto world in 1983, when Nissan opened its first U.S. plant in Smyrna, Tenn. This was followed by large manufacturing operations for GM and VW. Hundreds of suppliers followed. Today, many thousands of Tennesseans are employed in vehicle manufacturing. Auto makers are spending more than $300 billion globally by mid- decade to transition their lineups, including on massive battery factories and on new and revamped assembly plants. VW is nearing completion of an $800 million expansion of its decade-old assembly plant in Chattanooga, where next spring it is scheduled to start production of its new ID.4 electric SUV. GM in the past year decided to double down on Tennessee as a base of EV production, spending $2 billion to overhaul its assembly plant in Spring Hill, for electrics, starting with a plug-in Cadillac SUV. Classroom discussion questions: 1. What is a "right-to-work state" and why was it a factor here? 2. Discuss the incentives offered to auto makers. Are they reasonable

Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
