Volkswagen's First US Assembly Plant Will Be In Chattanooga, Tennessee

VW to build plant in Chattanooga
By: Mike Pare

Volkswagen AG will build its first United States assembly plant in Chattanooga, officials said today.

Europe’s biggest automaker said it will put a nearly $1 billion investment in Chattanooga’s Enterprise South Industrial Park.

The plant is expected to create 2,000 jobs. It is expected to open in 2011.

“The U.S. market is an important part of our volume strategy, and we are now very resolutely accessing that market,” said Martin Winterkorn, chief executive of Volkswagen.

Tennessee Gov. Phil Bredesen said he is “enormously pleased” by the announcement.

Mr. Bredesen and other officials including Volkswagen of America’s chief executive, were slated to be at Hunter Museum of American Art at 11:30 a.m. for an announcement.

“I believe Volkswagen chose Tennessee because of our shared values, our commitment to innovation and our strong respect for the environment,” he said.

Matt Kisber, commissioner of the Tennessee Department of Economic and Community Development, said he could not be more pleased in the partnership between the state, VW and Chattanooga and Hamilton County government.

Hamilton County Mayor Claude Ramsey said he has worked with four different city mayors and other officials with a vision of transforming the Volunteer Army Ammunition Plant site.

Chattanooga Mayor Ron Littlefield said VW and Chattanooga have a lot in common.

“Both are serious about environmental sustainability and 21st century manufacturing,” he said.

U.S. Sen. Bob Corker, R-Tenn., said the community has maintained its focus

Officials at the Wolfsburg-based company said the surging euro has pushed plans for a production facility forward. The 15-nation currency has hit record highs recently against the U.S. dollar, making goods exported from Germany more expensive in the United States.

Volkswagen recently moved its North American headquarters from suburban Detroit to Herndon, Va., outside Washington, to bring it closer to its East Coast customer base.

Tennessee Gov. Phil Bredesen, who landed in Chattanooga early today, said he is “enormously pleased” with the facility coming to Southeast Tennessee.

Erich Merkle, vice president of forecasting auto industry forecaster IRN Inc., said suppliers will build facilities to support the assembly plant.

Chattanooga beat out bids by Alabama and Michigan for the plant.

The announcement came Tuesday from Lower Saxony Minister President Christian Wulff, who sits on the supervisory board of Europe's largest automaker.