State officials have not released the incentive package that was used as bait to attract Volkswagen.Īlso, the South offers ample highway and rail connections and hundreds of existing suppliers but its main attraction is a pool of workers who have shown at other European and Asian assembly plants that they can live without the United Auto Workers. While competing against Alabama and Michigan, Tennessee officials in recent weeks approved $1.25 million for work at the Chattanooga site that was once part of an Army ammunition plant complex. The 15-nation currency hit a record high of $1.6038 on Tuesday, making goods exported from Germany more expensive in the United States. The automaker has said the surging euro has pushed along plans for a new production facility. Wulff said the new plant in the U.S., in addition to its factories in India and Russia, is part of the company’s strategy to become the world’s No. The German state of Lower Saxony owns more than 20 percent of Volkswagen. VW officials have said the company intends to more than triple its U.S. Volkswagen holds only a 2 percent share of the U.S. plant that is being built near Tupelo, Miss., and the $1.2 billion Kia Motors Corp.
The 1,350-acre site at Enterprise South Industrial Park near interstates 75 and 24 between Nashville and Atlanta has long been seeking an auto assembly plant.Ĭhattanooga previously lost out on the $1.3 billion Toyota Motor Corp. “Chattanooga is an excellent fit for the Volkswagen culture, having an exceptional quality of life and a long manufacturing tradition,” said Stefan Jacoby, President and CEO of Volkswagen Group of America. became the first foreign automaker in the South at Smyrna. VW picked Tennessee 25 years after Nissan Motor Co. Additional support includes assistance for public infrastructure and job training.” Tennessee officials have not released details of what it is giving Volkswagen but the company’s statement said the “incentives are tied to job creation and capital investment.
The company statement said the plant near the Georgia and Alabama borders would create 2,000 direct jobs and “add a significant number of jobs in related sectors.”Ī statement from parent Volkswagen AG said the company approved up to $991.4 million to build the facility, with the plant aiming for a capacity of 150,000 cars a year. production facility in 1988.Ĭhristian Wulff, the governor of Lower Saxony and a member of VW’s supervisory board, told The Associated Press that the company picked Chattanooga after the board debated the merits of the location and its benefits.
Europe’s biggest automaker, closed its last U.S. Sites in Alabama and Michigan were also considered for the plant, which is part of Volkswagen’s strategy to increase its presence in America. said it will produce a new midsize sedan designed specifically for the North American consumer and invest $1 billion in the economy. assembly plant expected to create about 2,000 jobs. Volkswagen picked Chattanooga over rival sites in two other states for a new U.S.
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