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Volkswagen Announces New SUV Line for Chattanooga

Volkswagen has announced that Tennessee will be home to its new SUV production line, representing a $600 million investment in the Volunteer State that’s expected to generate 2,000 more jobs at the company’s Chattanooga plant.

The automaker’s decision, which includes plans to establish a new strategic marketing and research facility in Tennessee, comes on the heels of an announcement by the United Auto Workers union that it would be opening an office for a voluntary chapter at the Southeast Tennessee VW plant.

“The impact of this announcement goes far beyond the 2,000 new jobs because of the large multiplier effect of the automotive industry,” said Tennessee Gov. Bill Haslam, in a press release, “and adding an additional manufacturing line and the National Research & Development and Planning Center sends a clear signal that Tennessee can compete with anyone in the global marketplace.”

The press release from the Governor’s office also notes that the state is providing a $165.8 million grant for site development, infrastructure, equipment acquisition and construction costs, as well as a $12 million grant for new employee training.

Volkswagen Group of America has agreed to waive certain tax credits related to its expansion as part of the incentive package.

And some other leaders in Tennessee auto manufacturing supplies — such as Kim Ketchum, Magneti Marelli’s corporate director of business development  or James Adams with eSpin Technologies, Inc. — echoed the Governor’s point that VW’s decision to increase production could create more demand for vehicle parts and positively impact other areas of auto manufacturing across the state.

Others have expressed hope that the expansion will lead to more emphasis on STEM education in the Chattanooga region.

Volkswagen has also named global works council chairman Bernd Osterloh to the board of directors for it’s American auto group.

Political leaders and industry groups lauded the German automotive group’s decision to expand.

U.S. Senator Bob Corker, formerly Chattanooga’s mayor, reminisced about the day, “six years ago,” that he received a call from the Volkswagen board that Chattanooga was where they had decided to locate.

“Today’s announcement is a similar high point,” Corker said in a press release, “as VW’s significantly expanded presence means that thousands of more families will benefit from the good paying jobs being created at the plant.”

Tennessee Democratic Party Chairman Roy Herron praised former state senate colleague and current Chattanooga Mayor Andy Berke, as well as other city leaders and VW employees, for bringing the expansion and jobs to the state.

“We commend the management and workers at Volkswagen as well as Mayor Berke and other city and county leaders who persevered and brought these jobs despite Republican threats, attacks, and interference with the rights of this company and its workers,” Herron said.

The UAW’s secretary-treasurer, Gary Casteel, issued a statement Monday to congratulate Volkswagen, its employees and Tennesseans on the automaker’s expansion, and thank Haslam for extending the necessary incentives to make the expansion work.

“State officials assured the public and Volkswagen employees that the decision on incentives for Chattanooga would not be related to whether workers exercise their right to join a union, and they kept their promise,” Casteel said in the statement, as reported by WTVC in Chattanooga.

In the statement, Casteel also alleged that the autoworkers union’s decision to expand to the Scenic City played a part in the decision of the automaker. “The fact that the new line is being announced four days after the rollout of UAW Local 42 in Chattanooga reinforces the consensus that the UAW has reached with the company,” Casteel said.

The decision garnered national and international coverage from outlets such as the Associated Press, New York Times, Wall Street Journal, USA Today, Detroit Free Press, CNN, Reuters, Bloomberg, and Automotive News.

Haslam Announces VW SUV Coming to TN

Press release from the Office of Tennessee Gov. Bill Haslam; July 14, 2014:

NASHVILLE – Tennessee Gov. Bill Haslam and Volkswagen Group of America officials announced today the company will expand its sole U.S. manufacturing facility in Chattanooga, Tennessee. Volkswagen will add an additional manufacturing line and create the National Research & Development and Planning Center of Volkswagen Group of America. Volkswagen’s total global investment for the expansion will be $900 million, with $600 million invested in Tennessee and 2,000 new jobs being created in Hamilton County.

“Today is an exciting day not just for Chattanooga and Hamilton County but for all of Tennessee, and I want to thank Volkswagen for its significant long-term investment in our state,” Haslam said. “The impact of this announcement goes far beyond the 2,000 new jobs because of the large multiplier effect of the automotive industry, and adding an additional manufacturing line and the National Research & Development and Planning Center sends a clear signal that Tennessee can compete with anyone in the global marketplace.”

The expanded plant in the Enterprise South Industrial Park will manufacture a new automotive line, a midsize SUV for the American market. Production of the new SUV will begin in the fourth quarter of 2016 with the first vehicle expected to roll off the new assembly line by the end of 2016. The expansion will also create the National Research & Development and Planning Center of the Volkswagen Group of America.

“The United States of America is and will remain one of the most important markets of Volkswagen. Over the past few years, we have achieved a lot here. We are now launching the second phase of the Volkswagen campaign in the USA. With the midsize SUV, the expansion of the Chattanooga plant and the new development center, we are focusing on the wishes of US customers,” Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, in Wolfsburg said. “This is also a strong signal for the USA as an industrial and automobile production location. The Volkswagen brand is going on the attack again in America.”

“I deeply appreciate Volkswagen’s significant long-term commitment to the hometown and state that I love,” U. S. Senator Bob Corker said. “I am grateful for Governor Haslam’s steady leadership, for our mayors, our great community leaders and the workers at the Chattanooga plant, whose commitment to excellence helped pave the way for today’s announcement. Finally, I am thankful to be able to help see this through to today’s conclusion.”

Corker added, “One of the most meaningful days in my public service career occurred six years ago when I received the call from the Volkswagen board room that they had chosen Chattanooga. Today’s announcement is a similar high point, as VW’s significantly expanded presence means that thousands more families will benefit from the good paying jobs being created at the plant.”

“Hamilton County is pleased to partner with Volkswagen as they create 2,000 new family-wage jobs which will also generate very positive economic ripple effects for residents throughout our community,” Hamilton County Mayor Jim Coppinger said. “By working with Volkswagen to build on the tremendous success of their initial job creation project, we are establishing a foundation for continuing economic growth for years to come.”

“Volkswagen is one of Chattanooga’s largest and most valued employers. They have brought 12,400 living-wage jobs to our region, employed Chattanoogans and helped build our middle class. This expansion will result in a huge capital investment and thousands of new jobs,” Chattanooga Mayor Andy Berke said. “From day one, the city and county have worked hard to see today become a reality, when we can announce that Volkswagen will be adding more jobs, more investment and expanding their presence in Chattanooga.”

“This announcement is great for Chattanooga and great for Volkswagen,” Ron Harr, president & CEO of the Chattanooga Chamber, said. “Thanks to Volkswagen’s expansion, we will have a much easier time recruiting additional automotive suppliers to help them build out their supply chain while also cementing Chattanooga as ‘The Center of the Automotive South.’”

The state of Tennessee is providing a $165.8 million grant for costs associated with site development and preparation, infrastructure, production equipment acquisition and installation, and facility construction. In addition, the state will provide a $12 million grant for training new employees. As part of the incentive package, Volkswagen Group of America has agreed to waive its right to claim certain statutorily available tax credits directly related to the expansion.

Volkswagen Chattanooga currently employs 2,500 people. Hiring for new production positions will occur closer to the launch of the new product. The details of that application and assessment process will be announced at that time.

Immediate needs will center around professional candidates with skills in areas such as purchasing, logistics, engineering, and human resources to begin the preparations for the parts, equipment and people needed to produce the new product line. Interested candidates can search and apply for open positions online at vwjobschattanooga.com or on major online sites such as LinkedIn and CareerBuilder.

Corker Praises VW Decision to Build SUV in TN, Create 2K Jobs

Press release from the Office of U.S. Senator Bob Corker; July 14, 2014:

WOLFSBURG, Germany – U.S. Senator Bob Corker (R-Tenn.), Tennessee Governor Bill Haslam, Chattanooga Mayor Andy Berke and Hamilton County Mayor Jim Coppinger were in Wolfsburg, Germany, today as Volkswagen CEO Prof. Dr. Martin Winterkorn announced that the company will build its midsize SUV in Chattanooga, Tennessee, a more than $600 million investment in the region, which will add 2,000 jobs at the plant.

“I deeply appreciate Volkswagen’s significant long-term commitment to the hometown and state that I love,” said Corker. “I am grateful for Governor Haslam’s steady leadership, for our mayors, our great community leaders and the workers at the Chattanooga plant, whose commitment to excellence helped pave the way for today’s announcement. Finally, I am thankful to be able to help see this through to today’s conclusion.”

“One of the most meaningful days in my public service career occurred six years ago when I received the call from the Volkswagen board room that they had chosen Chattanooga,” added Corker. “Today’s announcement is a similar high point, as VW’s significantly expanded presence means that thousands of more families will benefit from the good paying jobs being created at the plant.”

Volkswagen will add an additional manufacturing line and create the National Research & Development and Planning Center of Volkswagen Group of America. Volkswagen’s total global investment for the expansion will be $900 million, with $600 million invested in Tennessee and 2,000 new jobs being created in Hamilton County.

The expanded plant in the Enterprise South Industrial Park will manufacture a new automotive line, a midsize SUV for the American market. Production of the new SUV will begin in the fourth quarter of 2016 with the first vehicle expected to roll off the new assembly line by the end of 2016. The expansion will also create the National Research & Development and Planning Center of the Volkswagen Group of America.

As mayor of Chattanooga from 2001-2005, Corker worked with officials and community leaders to develop the 1,200 acre Enterprise South Industrial Park, which is now home to Volkswagen’s North American manufacturing headquarters. Much of the negotiation that led to Volkswagen choosing Chattanooga occurred around the dining room table of Corker’s Chattanooga home.