Business Facilities - September 2008 - (Page 25)

CORPORATE MOVES Tennessee By Jack Rogers T PHOTOS: TENNESSEE DEPT. OF ECONOMIC & COMMUNITY DEVELOPMENT; WIKIPEDIA ennessee scored its largest eco- declared that Volkswagon picked nomic development coup in the Tennessee site over competing more than a decade when Volk- locations in Michigan and Alabama swagon Group of America because of “shared values, [Tenannounced in July that it will build nessee’s] commitment to innovaits new U.S. automotive produc- tion, and [its] strong respect for the tion facility in Chattanooga. environment.” The Chattanooga plant marks a “This project will have a signifireturn to U.S. production for VW, cant impact on the economy of which closed its last North Ameri- Tennessee and the region for can plant in Pennsylvania in 1988. decades to come,” Bredesen said at The German auto giant’s deci- the plant siting announcement. sion to locate car production in Tennessee is expected to bring more than 2,000 jobs and pump nearly $1 billion into the local economy. The company will build the facility in the Enterprise South Industrial Park, located 12 miles northeast of downSteering growth in Tennessee: Gov. Phil Bredesen and Volkswagon Group of America President and CEO town Chattanooga. The Stefan Jacoby announce site selection for new plant. 1,350-acre site is owned 100% by the city of Chattanooga and Hamilton County. Adjacent to Interstate 75, It is certified as an industrial megasite by the Tennessee Valley Authority. The new VW plant is expected to have an initial production capacity of 150,000 vehicles, including a new midsize sedan that Volkswagon is designing for the North American market. Production at the plant will commence in 2011. Chattanooga, TN from Lookout Mountain Tennessee Gov. Phil Bredesen “Volkswagon and Chattanooga have a lot in common,” added Chattanooga City Mayor Ron Littlefield. “Both are serious about environmental sustainability and 21st century manufacturing.” Industry analysts noted that the falling value of the U.S. dollar may have been a key factor in VW’s decision to resume car production in the U.S. The decline of the U.S. currency has increased the cost of overseas production, and conversely made U.S.-based auto manufacturing more cost effective. The Tennessee Department of Economic Development put together a comprehensive package of incentives to seal the deal with Volkswagon, including statutory incentives tied to job creation and capital investment. Additional support in the deal included assistance for building up public infrastructure and job training. BUSINESS FACILITIES 25

Table of Contents Feed for the Digital Edition of Business Facilities - September 2008

Business Facilities- September 2008 Contents First Word Snapshots Corporate Moves:�Mississippi Editor's Location Picks 2008 The Palmetto State Reaches Across the Sea Corporate Moves:�Tennessee Metro Spotlight:�Spokane, WA Biotech: Building Block for Development Wind Power Lifts Iowa Germany:�Europe's Economic Juggernaut California Here We Come Up, Up and Away in North Carolina Corporate Moves:�West Virginia Metro Spotlight:�Decatur/Greensburg, IN Advertiser Index Ask the Expert

Business Facilities - September 2008

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