From Tennessee's sprawling assembly lines producing hundreds of thousands of vehicles each year to the vast network of suppliers crafting millions of components, the state's automotive industry is a colossal economic engine, directly powering the lives of over 135,000 Tennesseans and generating billions for the local economy.
Key Takeaways
- In 2023, Nissan Smyrna Plant employed 13,900 associates directly in vehicle assembly and powertrain production
- Volkswagen Chattanooga Plant had 4,200 direct employees in 2022, focusing on SUV and Passat production
- General Motors Spring Hill Manufacturing employed 4,000 workers in 2023 for Cadillac Lyriq EV production
- In 2022, Nissan Smyrna produced 571,000 vehicles, making it the largest Nissan plant outside Japan
- VW Chattanooga assembled 144,000 vehicles in 2023, primarily Atlas SUVs
- GM Spring Hill produced 150,000 Cadillac Lyriq EVs in first full year 2023
- The automotive industry contributed $28.6 billion to Tennessee's GDP in 2022
- Auto manufacturing generated $10.2 billion in wages for TN workers in 2023
- Automotive sector paid $1.2 billion in state/local taxes in TN 2022
- Nissan announced $500 million investment in Smyrna EV battery assembly in 2021
- VW invested $800 million in Chattanooga battery plant opening 2024
- GM $2 billion retooling Spring Hill for EV production 2023
- TN auto exports to Mexico reached $4.2 billion in 2022
- Nissan vehicles from Smyrna exported 40% of production, ~228,000 units to 20 countries 2023
- VW Chattanooga exports 60% of output, primarily to US/Canada but global 2023
Tennessee's auto industry is a massive economic force with major investments and exports.
Economic Impact
- The automotive industry contributed $28.6 billion to Tennessee's GDP in 2022
- Auto manufacturing generated $10.2 billion in wages for TN workers in 2023
- Automotive sector paid $1.2 billion in state/local taxes in TN 2022
- Nissan operations contribute $5 billion annually to TN economy
- VW Chattanooga adds $2 billion yearly economic output in TN
- GM Spring Hill economic multiplier effect supports 12,000 indirect jobs worth $600 million
- Ford BlueOval City projected $5.6 billion annual economic impact
- Auto suppliers in TN generate $15 billion in sales revenue yearly
- Bridgestone TN facilities contribute $1.8 billion to GDP
- Yokohama Tire adds $800 million economic value in Memphis area
- Denso TN economic contribution $1.1 billion including multipliers
- Auto industry exports from TN totaled $12.4 billion in 2022
- 25% of TN manufacturing GDP from autos, equating to $7.5 billion direct
- Nissan supplier network spends $3 billion locally in TN yearly
- VW local purchasing $1.5 billion from 300 TN suppliers annually
- GM Spring Hill procurement $900 million from TN businesses 2023
- Ford Stanton will source $2 billion/year from TN suppliers
- AutoZone aftermarket sales $16.5 billion national with TN HQ impact $2B
- Rivian TN suppliers contribute $400 million in EV components value
- Magna TN sales to OEMs $4.2 billion annually
Economic Impact Interpretation
While the numbers themselves are impressive—from Nissan's $5 billion footprint to Ford's future $5.6 billion boom—what truly drives Tennessee is the multiplier effect, where every factory paycheck and supplier invoice weaves a powerful economic engine that now revs at a quarter of the state's manufacturing GDP.
Employment
- In 2023, Nissan Smyrna Plant employed 13,900 associates directly in vehicle assembly and powertrain production
- Volkswagen Chattanooga Plant had 4,200 direct employees in 2022, focusing on SUV and Passat production
- General Motors Spring Hill Manufacturing employed 4,000 workers in 2023 for Cadillac Lyriq EV production
- Ford BlueOval City in Stanton is projected to employ 6,000 workers upon full operation by 2026 for F-150 Lightning EVs
- Bridgestone Americas Technical Center in Akron employs 1,200 in TN-related tire R&D supporting auto industry
- Over 135,000 Tennesseans were employed in automotive manufacturing and supply chain in 2022
- Nissan Decherd Powertrain Plant employs 1,800 workers producing transmissions for North America
- Magna International's TN facilities employ 2,500 in seating and interiors for OEMs like Nissan and VW
- Denso Manufacturing Tennessee employs 4,100 in climate control and electronics for autos
- Electrolux in Anderson County supports auto with 1,200 jobs in HVAC components
- Total automotive sector jobs in TN reached 348,000 including indirect in 2023
- Claiborne Progressive Stamping employs 450 in metal stamping for auto body parts
- Yokohama Tire Manufacturing employs 700 in Memphis for auto tires
- AutoZone headquarters in Memphis employs 15,000 supporting aftermarket auto parts
- Steelcase TN operations employ 300 in seating for commercial vehicles
- Rivian suppliers in TN employ 1,500 collectively in battery components
- Lear Corporation Franklin plant employs 1,200 in seating systems for VW and Nissan
- Cummins in Cookeville employs 800 in engine components for heavy-duty autos
- Faurecia in Shelbyville employs 900 in interiors for GM Spring Hill
- Toyoda Gosei North Carolina but TN branch employs 600 in plastic parts
Employment Interpretation
It seems Tennessee has built an entire automotive ecosystem so robust that its factory workers could probably assemble a new car using only parts sourced from their neighbors' backyards, while still leaving over 300,000 others to manage the paperwork, the coffee runs, and the all-important task of selling you wiper blades for the next twenty years.
Exports
- TN auto exports to Mexico reached $4.2 billion in 2022
- Nissan vehicles from Smyrna exported 40% of production, ~228,000 units to 20 countries 2023
- VW Chattanooga exports 60% of output, primarily to US/Canada but global 2023
- GM Spring Hill Cadillac exports 25% to China/Europe 2022
- Ford Stanton planned exports 30% of EVs to Europe by 2026
- TN auto parts exports totaled $8.1 billion in 2023
- Bridgestone tires from TN exported to 50 countries, $1.2B value
- Yokohama Memphis exports 35% production to Latin America
- Denso components exported $700 million from TN 2022
- Magna seating systems exported 45% from TN facilities
Exports Interpretation
Tennessee’s auto industry has brilliantly pivoted from just building America’s cars to exporting its industrial genius, proving that from Smyrna's Nissans to Chattanooga's VWs, the state's real export isn't just vehicles—it's a fully loaded, parts-and-all global blueprint for manufacturing success.
Investments
- Nissan announced $500 million investment in Smyrna EV battery assembly in 2021
- VW invested $800 million in Chattanooga battery plant opening 2024
- GM $2 billion retooling Spring Hill for EV production 2023
- Ford $5.6 billion BlueOval City mega-campus in Stanton announced 2021
- Nissan $200 million Decherd transmission expansion 2022
- Bridgestone $18 million tire tech upgrade in TN 2023
- Yokohama $100 million Memphis plant expansion for EV tires
- Denso $68 million new facility in Maryville TN 2022
- Magna $160 million seating plant expansion in TN 2021
- Lear $50 million investment in Franklin wiring tech 2023
- Cummins $29 million Cookeville engine R&D center 2022
- Faurecia $40 million Shelbyville interiors upgrade for EVs
- State of TN invested $100 million incentives for Ford BlueOval 2022
- Rivian $500 million supplier ecosystem grants in West TN 2023
- Electrolux $250 million expansion for auto HVAC 2021
- Claiborne $20 million stamping line for EV bodies 2023
- Steelcase $15 million TN commercial vehicle seating plant
- Toyoda Gosei $30 million plastic injection for autos 2022
Investments Interpretation
Looks like Tennessee's automotive industry is getting a multibillion-dollar electric makeover, with everyone from battery giants to seat stitchers plugging into the current.
Production
- In 2022, Nissan Smyrna produced 571,000 vehicles, making it the largest Nissan plant outside Japan
- VW Chattanooga assembled 144,000 vehicles in 2023, primarily Atlas SUVs
- GM Spring Hill produced 150,000 Cadillac Lyriq EVs in first full year 2023
- Nissan Smyrna's engine plant produced 1.2 million engines in 2022
- VW Chattanooga battery plant to produce 240,000 EV batteries annually by 2025
- Ford BlueOval City plans 500,000 EVs per year production capacity
- Nissan Decherd produced 2.1 million transmissions in 2023
- Bridgestone Memphis plant produces 20,000 tires daily for OEM autos
- Yokohama Memphis tire plant output 6.5 million tires annually in 2022
- GM Spring Hill Cadillac XT5 production reached 120,000 units in 2022
- VW Chattanooga produced 50,000 ID.4 EVs in 2023 ramp-up
- Nissan Smyrna Rogue crossover output 350,000 in 2023 model year
- Nissan Altima sedans from Smyrna totaled 220,000 in 2022
- Leaf EVs from Smyrna plant: 100,000 cumulative by 2023
- Pathfinder SUVs from Smyrna: 150,000 annually average 2020-2023
- VW Atlas output Chattanooga 80,000 in 2023
- GM Spring Hill Escalade production shifted but 40,000 pre-EV
- Ford Stanton E-transit vans pilot 20,000/year initial
- Denso TN HVAC units: 5 million annually for Nissan/VW
- Magna TN seats: 2 million units/year for multiple OEMs
- Lear TN wiring harnesses: 10 million assemblies/year
Production Interpretation
Tennessee's auto industry is like a perfectly tuned engine—Nissan’s Smyrna plant roars with traditional dominance while the electric future revs up beside it, all bolted together by a sprawling network of suppliers pumping out parts at staggering scale.
Sources & References
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