July 15, 2008
Chattanooga, Tennessee - Volkswagen
Group of America, Inc. announced that it will build a U.S. automotive
production facility in Chattanooga, Tennessee where it will produce
a car designed specifically for the North American consumer and
invest $1 billion in the economy. The announcement is an important
element of the company's overall U.S. strategy of connecting with
its customers, increasing its competitiveness and tripling its U.S.
customer base in the next decade.
"The U.S. market is an important part of our
volume strategy and we are now very resolutely accessing that market,"
said Prof. Martin Winterkorn, CEO of Volkswagen AG. "Volkswagen
will be extremely active there. This plant represents a milestone
in Volkswagen's growth strategy. We will be selling 800,000 Volkswagens
in the U.S. by 2018, and this new site will play a key role. This,
along with our growth strategy, is a prerequisite for the economic
success of the company in the dollar region. We look forward to
establishing an important mainstay for ourselves when we become
the biggest European carmaker there."
"This is a significant step forward in achieving
our goals in the U.S. market and a clear sign of the Volkswagen
Group's commitment to the North American consumer. Today's decision
is a fundamental part of our new strategic direction of the U.S.
and our five-pillar strategy," said Stefan Jacoby, President
and CEO of Volkswagen Group of America. "Chattanooga is an
excellent fit for the Volkswagen culture, having an exceptional
quality of life and a long manufacturing tradition."
The company will build the facility in the Enterprise
South Industrial Park, located 12 miles northeast of downtown Chattanooga.
The 1,350 acre site is 100 percent owned by the City of Chattanooga
and Hamilton County and is certified as an industrial megasite by
the Tennessee Valley Authority. Enterprise South is adjacent to
I-75. Initial production capacity for the facility is anticipated
to be 150,000 vehicles, including a new midsize sedan designed especially
for the North American market. Production is scheduled to begin
in 2011.
"I'm enormously pleased by the announcement
from Volkswagen Group of America and grateful for the company's
investment in Chattanooga and in the people of Tennessee,"
said Governor Phil Bredesen. "I believe Volkswagen chose Tennessee
because of our shared values, our commitment to innovation and our
strong respect for the environment. This project will have a significant
impact on the economy of Tennessee and the region for decades to
come."
"I couldn't be more pleased that the spirit
of partnership between the State of Tennessee, Volkswagen and the
government and business leadership of Chattanooga and Hamilton County
has resulted in this significant investment in Enterprise South,"
said Matt Kisber, Commissioner of the Tennessee Department of Economic
and Community Development. "Volkswagen's investment in this
community means the hard work and dedication demonstrated by people
at the state and local level to create one of the best business
climates in the country is paying off."
With the new plant, Volkswagen will bring about
2,000 direct jobs to the area, and will add a significant number
of jobs in related sectors. Volkswagen Group of America received
an attractive, comprehensive package of incentives for the new facility
from Governor Bredesen's office and the Tennessee Department of
Economic and Community Development. The statutory incentives are
tied to job creation and capital investment Additional support includes
assistance for public infrastructure and job training.
For more information on the Volkswagen Group of America, visit
their website at www.volkswagengroupamerica.com.
