Volkswagen to expand auto plant in Chattanooga, build new SUV

Volkswagen will expand its automotive plant in Chattanooga, the company’s only U.S. manufacturing facility, and build a new midsize SUV for the American market.

Volkswagen’s total global investment for the expansion will be $900 million, and $600 million of that will be invested in Tennessee. The company expects to create 2,000 jobs in Hamilton County.

The announcement was made by Tennessee Gov. Bill Haslam and Volkswagen Group of America officials in a Monday morning press release.

Here is more information from the press release:

Volkswagen will add an additional manufacturing line and create the National Research and Development and Planning Center of Volkswagen Group of America.

“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 and 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 and 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,” said Martin Winterkorn, chairman of the Board of Management of Volkswagen Aktiengesellschaft, in Wolfsburg, Germany. “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 U.S. customers. 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. Sen. 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,” said Ron Harr, president and chief executive officer of the Chattanooga Chamber. “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.