Nevadans start to ask just how long it will be before an automobile manufacturer sets up shop
A recent blog written addressing the possibility of a major automobile manufacturer opening up shop in North Las Vegas has generated incredible attention.
While Toyota was mentioned by two sources as being interested in invading Southern Nevada for the creation of a manufacturing and distribution point, one other person who should know said at least one other big-time automobile manufacturer had been rumored to be studying the idea, too.
In either case, it makes good sense that some major automobile giant sets up shop in Nevada. In fact, the biggest question to this point has been why this hasn’t happened already considering the state’s user-friendly tax structure and its favorable weather elements that range from extreme cold to extreme heat.
In fact, when street hustling Richie Clyne assembled the money team of hotel casino owners Bill Bennett and Ralph Engelstad for the creation of Las Vegas Motor Speedway more than 20 years ago, the intent was multi-faceted (part of the development included an industrial park).
First off, Clyne wanted to land big-time auto racing such as NASCAR Winston Cup and National Hot Rod Association drag racing events. With no guarantees in the hands of anyone involved in the endeavor, the group announced plans to build a $200 million facility knowing full-well that money spent didn’t guarantee anyone of anything.
In a city of big-time ideas with many big-time flops, Las Vegas Motor Speedway became one of the all-time great additions to not only Southern Nevada but to the entire state. “King” Richard Petty hinted in a 1998 interview at LVMS that NASCAR had taken a hard look at the facility and in his mind, a Cup race was probably in the future for the facility.
Not long after Petty’s interview, it was announced that a 1998 NASCAR Winston Cup event was on the schedule and the dream team of Clyne, Engelstad and Bennett had fulfilled their promise that the track would not only be built, but also become home to a prestigious stock car race.
A drag race facility was put on hold to make certain that the Cup race was (a) secured and (b) presented properly.
The drag race facility would be completed in the late 1990s when Bruton Smith of Speedway Motorsports Inc., purchased LVMS. The track now hosts two major NHRA races each year.
In the meantime, the legendary Carroll Shelby was one of the first manufacturers to sign a lease agreement with LVMS and Roush Racing has since joined the fold bringing two of the most respected names in the business to the facility.
During the worst recession since the Great Depression, LVMS has continued to attract sellout crowds for NASCAR Sprint Cup and NHRA dates while also maintaining a non-stop schedule of special events on everything from road courses to short track races.
However, more than 20 years after Engelstad, Bennett and Clyne put their heads together to create LVMS on 1,200 acres in the northwest Las Vegas Valley, one piece of the puzzle remains missing; that of a major automobile manufacturer being an integral part of the equation.
With rumors swirling like the wind in Southern Nevada, land owners in North Las Vegas are busy calling to see if their investments might be increasing in value thanks to word that Southern Nevada is about to diversify its economy again. It all makes perfect sense that while the rumors might be new, the biggest question is why a major automobile manufacturer hasn’t broke ground before now.
Shelby is running full-speed ahead and Nevada remains what must be the friendliest business-related states in the country.
So when it was stated recently by sources that Toyota had been researching the idea of building a facility in Southern Nevada, the missing element in the big picture seemed to be materializing. With land prices dropping dramatically in the past three years after record increases, the environment in Southern Nevada for a major automobile manufacturer became even more ideal.
Throw in the tragic circumstances related to the tsunami and earthquake in Japan in March of 2010 that killed thousands while also severely damaging major automobile manufacturing plants in Japan and the possibility of expansion into Southern Nevada seems even more likely.
Most of those reportedly involved in researching Southern Nevada for possible automobile manufacturing are denying the rumor; apparently as all involved attempt to guard their interests. In fact, one source said Honda has already been looking to Southern Nevada for the past several years.
Someone – whether it be Toyota, Honda or yet another automobile manufacturer – needs to expand its efforts into Nevada – and hopefully someone with the state is extending his or her hand to make it all happen.
“Look, Nevada has everything,” said KJ Howe, a long-time automobile enthusiast who also served as race director for the Mint 400 off-road race from 1973-85. “The state has the ideal tax structure for a major automobile manufacturer; not to mention the best logistical elements for research and development.
“I mean, where else can you find the perfect testing grounds for new vehicles ranging from the snow in the winter to the heat of Death Valley in the summer? Everything is here and the fact that someone as intelligent as Carroll Shelby has been here for almost 20 years speaks for itself.
“And to put it all quite bluntly, how in the world can Mississippi have a Toyota plant and Nevada not have one? I have serious questions about that one.”
Howe also pointed out that Porsche had its USA headquarters in Reno for many years. While he’s not certain why Porsche left the state, he also agrees that another big-time automobile manufacturer should be added.
“It was too bad that Porsche left,” said Howe. “However, I am sure that the time is right to add someone else even if it’s a super luxury car builder. Once that happens, the ball will start rolling. Companies like Mercedes, BMW and Volkswagen have operations in the United States but not in Nevada. So, why not come here? We have affordable housing and the rest especially now. The automobile manufacturing industry is a relatively clean industry anyway, and we should be welcoming it with open arms. With the advent of hybrids, this is a natural area for that.”
Nev. State Sen. Mike Schneider, a 47-year resident of Las Vegas, agrees.
“I keep trying to understand why this sort of thing hasn’t happened sooner,” said Schneider. “When you weigh the positives and the negatives, the positives far out-weigh the negatives, so I’m wondering why this state hasn’t followed through by landing someone like Toyota or Honda.
“The infrastructure is here; and so is the economic environment and the tax structure. For whatever reason, we have not done a very good job of landing a very big fish as it relates to the car business. We need to reach out to businesses overseas –especially automobile manufacturers in Japan.”
