Report: Developers trend toward repurposing shuttered auto plants

Dec 9, 2011

Of the 263 automotive plants closed across the country over the past three decades, nearly 49 percent have been repurposed, according to a Labor Department study released Thursday.

And the pace of redeveloping them has accelerated.

The New York Times reported today that, despite the fragile economy, developers have bought as many closed plants in the past three years – 32– as they did in the previous 26 years. Lower property values and a glut of plants on the market have contributed to the trend.

The repurposed plants have welcomed traditional manufacturers, and some of have been turned into housing developments, offices and research centers which has helped affected communities rediscover needed tax revenues, according to the study, which was authored by Ann Arbor, Mich.-based Center for Automotive Research.

Regional differences influenced the fate of plants following their closures. Sites in the South and along the East and West coasts fared the best in finding new users, according to The Times, which said all 14 former plants closed in California and Texas were reused. In Michigan, the state hardest hit by closures, 43 of 105 have been revitalized.

Overall, 135 of the 263 remain vacant, including 24 that have been closed for at least two decades.

“They’re not all going to repurposed,” Jay Williams, executive director of the Office of Recovery for Auto Communities and Workers, told the newspaper. “Not every community is going to find a pot of gold at the end of this pathway.”