This document summarizes the strategic regional economic development of the Texas-Mexico Automotive SuperCluster (TMASC). It outlines how the Texas economy has outperformed the national economy during the recession by adding over 150,000 jobs from 2007-2008 compared to major job losses in other states. It then discusses the growing automotive industry cluster in central Texas and northern Mexico, and TMASC's goals to strengthen the regional supply chain and attract new investment from automakers and technology companies.

1. Strategic Regional Economic Development:
The Texas-Mexico Automotive SuperCluster (TMASC)
David Marquez
Executive Director
Bexar County Economic Development
October 1st, 2009
Texas Economic Development Council Annual Conference
San Antonio, TX
Developed by Bexar County in Collaboration with TMASC Strategic Partners

2. Economic Stability | Market Trends | TMASC Evolution
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3. Strength Amid the Recession
Source: US Bureau of Labor Statistics New York Times at www.nytimes.com

4. Texas Economy Outperforms Nation’s -
Jobs Added/Lost
Jobs Added/Lost
State
12/07 - 12/08
Texas +153,700
California -257,400
Florida -255,200
North Carolina -120,000
Source: U.S. Bureau of Labor Statistics

5. Texas Economy Outperforms Nation’s -
Economic Growth
Year Texas U.S.
2005 3.2 3.1
2006 4.1 2.8
2007 4.5 2.1
2008 4.2 1.9
2009 1.8 -0.9
2010 1.9 1.0
2011 3.8 2.9
Source: Texas Comptroller

6. CNBC’s Top States for Business 2009
State Economy Tech &
Transportation Workforce
(Overall) (Rank) Innovation
1. Virginia 7 10 12 8
2. Texas 1 1 3 14
3. Colorado 5 36 11 12
4. Iowa 4 31 24 21
5. Utah 14 34 26 9
Source: CNBC

7. Continued Corporate Investment in the Region
2009
• Caterpillar Inc. in Seguin; $170 million
• Medtronic in San Antonio; $23 million
• Tianjin Pipe Company in Corpus Christi; $1 billion; 300-600 new jobs
• Union Pacific San Antonio Intermodal Facility; $120 million
• Albany Composites in Boerne; $42 million
• General Dynamics Advanced Information Systems; $1.9 million
• L-3 Communications in Waco; $10 million
• Baker Petrolite in Kilgore; $20 million

8. Global Lone Star Rising
Recognition

9. Changing Geography
of Assembly
* Radius centered on 430 mile main transportation corridor from Laredo to Arlington.
SOURCE: ELM Guide, TIP Strategies, Inc., research
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10. Global Manufacturers
• Almost 900,000 units per year
• More than 18,000 workers by 2010
NOTE: Shaded region represents the NAFTA Highway.
SOURCE: ELM Guide, TIP Strategies, Inc. research
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11. Core, Ancillary,
and Support
Operations for
Automotive
Manufacturing
Source: State of Texas, Office of the Governor 2005

12. Assembly Plants
• General Motors
• Chrysler
• Navistar - International
• BAE Systems
• PACCAR - Peterbilt
• Caterpillar
• Marcopolo
• Toyota
• Daimler - Freightliner
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13. Results:
Toyota Moves Future Tacoma Production to San Antonio
Preserve and stabilize existing regional suppliers
New direct investment - $100 million
New direct jobs created - 1,100
Job multiplier - 1:5

14. Buzz:
Chrysler to Make Fiat in Mexico (WSJ Aug 2009)
Chrysler considering expansion of current Toluca, Mexico plant
Small car, fuel-efficient engine, new technologies
Target market: new-car shopper, 20-35 age bracket
Location based on Western Hemisphere market access

15. Economic Stability | Market Trends | TMASC Evolution
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16. North American Output
Source: CSM Worldwide, 2009

17. OEM Capacity Utilization
Source: CSM Worldwide, 2009

18. Top Trade-Ins Top New Purchases
1. Ford Explorer 1. Ford Focus
2. Ford F150 2. Honda Civic
3. Jeep Grand Cherokee 3. Ford Escape
4. Chevy Blazer 4. Ford F-150
5. Jeep Cherokee 5. Toyota Camry
6. Chevy C/K 1500 Series 6. Toyota Corolla
7. Ford Windstar 7. Honda CR-V
8. Dodge Ram 1500 8. Chevy Silverado
9. Mercury Grand Marquis 9. Honda Accord
10. Dodge Grand Caravan 10. Hyundai Elantra
Cash-for-Clunkers Program
Source: Edmunds.com, September 18, 2009

19. Growth in Driving Age Population (16-85)
Source: IHS Global Insight, 2009

20. The Rise of the Hybrid, Electric Car, and Micro Car
• Prius and Civic Hybrid among best-selling hybrids
• Escape & Highlander lead hybrid SUV sales
• GM began producing hybrid Tahoe, Yukon, Escalade in
Arlington, Texas
• Micro models (Nissan Versa, Honda Fit) popular
Cash for Clunkers purchases
SOURCES: Edmunds.com 20

21. Standard Technological Features

22. Options for Customization

23. Emerging Manufacturers
Tesla
V-Vehicle
Magna
Fisker
Wheego

24. $528 Million U.S. Loan Gives Fisker Plug-In a Jolt
Source: Automotive News, September 28, 2009

25. Oklahoma Company to Assemble Wheego Whip
Source: Associated Press, September 14, 2009

26. Asian Interests Chongqing Changan
BYD Auto
China FAW Group

27. Regional Snapshot | Market Trends | TMASC Evolution
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29. News
Updates
Discussions
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32. TMASC Evolution
A Visual Outline of Progress and Goals
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33. State of Texas Survey
Strategic Marketing of TMASC
Japan
China ?
Korea
India
Germany
Finland ?
U.S.

34. David Marquez
Executive Director
Economic Development
Bexar County
dmarquez@bexar.org
T: (210) 335-0667
www.linkedin.com/in/marquezdavid
TxMxAutomotive.com
www.bexar.org/ed
twitter.com/TMASC
Special thanks to T.I.P. Strategies and the City of San Antonio
linkedin.com
(search for the TMASC group)
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