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Home » News » Latest News » Chattanooga: VW leader ...
Thursday, May 14, 2009

Chattanooga: VW leader says local plant key to U.S. market growth

A top Volkswagen official said today that the new $1 billion automobile plant being built in Chattanooga “sends a clear and strong message” about the company’s commitment to be a major player in the U.S. car market.

“Despite the present situation on world markets, the U.S. market will recover and Volkswagen will be ready when that happens,” said Jochem Heizmann, a member of the Volkswagen’s management board. “The automobile will always be an essential part of the American way of life.”

Volkswagen, the world’s third largest carmaker, wants a bigger share of the U.S. market, where the company shut down its first production plant in Pennsylvania in the 1980s.

The Chattanooga plant is the first VW plant in the United States since then.

Top VW officials are in Chattanooga today to dedicate the placement of the first wall at the new plant, which is expected to begin vehicle production by 2011.

“Our own car production ‘made in America’ is an important core element of our growth strategy on the U.S. market,” Dr. Heizmann said. “That is why today is a major milestone for the Volkswagen Group.”

The Chattanooga factory will build a new midsize sedan specially designed for the North American market. Approximately 30 percent of the cars will be powered by Volkswagen’s TDI Clean Diesel Technology.

Volkswagen will invest $1 billion in the Chattanooga plant and employ 2,000 people.

“Today, we are putting down new roots in the United States of America. And we are entering a long-term partnership with this community, this state and this country,” said Frank Fischer, chairman and CEO of Volkswagen Group of America Chattanooga Operations, LLC.

Tennessee Gov. Phil Bredesen said the partnership among the state, the community and Volkswagen is creating an impact that is “literally concrete.”

“The dramatic change when seen on this site over the past year is clear evidence of Volkswagen’s commitment to the people of Tennessee and to the future of the company,” he said.

U.S. Sen. Lamar Alexander, R-Tenn., said the American auto industry is wherever Americans and especially Tennesseans are building cars and trucks.

“VW’s investment in the Chattanooga community will serve as a jobs magnet, bringing thousands more automotive jobs to Tennessee,” he said.

U.S. Sen Bob Corker, R-Tenn., said VW is gaining market share and there will likely be pent-up demand when the recession comes to an end.

“I am anxious for the day when the first cars roll off the assembly line in 2011,” he said.

U.S. Rep. Zach Wamp, R-Tenn., said the first wall of the production facility going up is another sign that Volkswagen is a part of the community and here for the long haul.

“At a time when unemployment is rising across the nation, it is encouraging to know that this $1 billion investment will continue to create new jobs in our region,” he said.

For complete details, see tomorrow’s Chattanooga Times Free Press.

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