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Tags: Volkswagen, Assembly Plant, Chattanooga, Tennessee

Tag Links: Volkswagen, Assembly Plant, Chattanooga, Tennessee

VW's choice eases Chattanooga's past auto snubs

VW's choice of Chattanooga for assembly plant eases frustration of past automaker snubs

CHATTANOOGA, Tenn. (AP) -- When Volkswagen said yes, a city that shed its reputation for dirty air to become a top outdoors destination forgot years of frustrating rejections by automakers.

Volkswagen's plans to build a $1 billion assembly plant and create 2,000 jobs in Chattanooga had radio listeners rejoicing on call-in shows, businesses hanging welcome signs and U.S. Sen. Bob Corker declaring the city "will never be the same again."

University of Tennessee economist Bill Fox said spinoff jobs in Tennessee and neighboring corners of Georgia and Alabama would probably total more than 10,000. That economic impact doesn't include the publicity from a global company planning a new sedan and seeking to boost its share of the U.S. market.

"The cachet of having the firm come there is something that will be talked about through much of the world," Fox said. "It gets the name of Chattanooga and the state of Tennessee in the media across the globe."

It's a welcome blast of attention for a city that once had the dirtiest air in the country. In 1969, the U.S. Department of Health, Education and Welfare ranked it No. 1 in particulate air pollution, thanks to smoke-belching foundries trapped by surrounding mountains.

Chattanooga and surrounding Hamilton County responded by creating an air pollution control bureau and in 1989 the Environmental Protection Agency took Chattanooga off its dirty air list.

In 2005, Chattanooga dedicated its redeveloped riverfront and Outside Magazine rated the Scenic City as one of America's Top 10 Dream Towns with hiking, camping, hang gliding, rock climbing and nearby whitewater rafting where 1996 Olympic competitions were held.

Hamilton County Mayor Claude Ramsey, who has worked for more than a decade to attract an automaker to Chattanooga, said the announcement answered "all those naysayers who said it would never happen."

"I can remember when the pollution was bad," Ramsey said. "The times have changed and manufacturing has changed and all that is for the better ... This is a community that can do about whatever it wants to once it makes up its mind."

Volkswagen's plans for the new plant would complement Chattanooga's environmental revival, company officials say.

It will be built on the site of a former Army ammunition plant, near a pair of interstate highways and rail lines. Volkswagen has heavily marketed its fuel-efficient cars and says it strives to make all of its operations environmentally sustainable.

And it will be an employment boon for a city still coping -- like many industrial centers in the South -- from the loss of manufacturing sites that sustained them for decades.

Jonathan Hood, a Chattanooga State Technical Community College freshman studying electronics, said he will be applying at Volkswagen.

Hood, a 39-year-old former Marine, said he works in construction but has always wanted to work in an auto plant. Hood said he has an aunt who works at a Chrysler plant in Ohio.

"She really makes good money," Hood said.

Dale Smith, general manager of Village Volkswagen of Chattanooga, said the company's choice of a plant site "is probably the biggest thing to ever happen to this town."
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nukezdocnukezdoc - 7/17/2008 8:57:18 AM
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Good for Chattanooga! On any trip to Atlanta, I always make a point to spend some time in that neat city up in the mountains- hard to believe that it used to be so polluted.

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EnnNorakEnnNorak - 7/17/2008 9:06:32 AM
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I always wanted to visit Tennessee. Now I have a perfect excuse. VW locating there means they will likely offer interesting plant tours for visitors. There is also a company in TN that makes great shortwave radios that I want to visit. BTW, I recently became a happy VW customer by buying a loaded Passat to replace a leased Audi A6 that I turned in.

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Bmw8terBmw8ter - 7/17/2008 9:48:48 AM
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I lived in the Chattanooga area for 3 years a while back, up in East Brainerd ontop of the mountain. Fantastic place to live. There are tons of things to do around there. I visited a year and a half ago. I couldn't believe how developed it's become. You'd think think they had 1 million people living there.


DieselRulesDieselRules - 7/17/2008 1:19:53 PM
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EnnNorak: so you've down-graded from the "full A6" to the "A6 lite"! I used to joke that a Passat was an Audi without the climate control, except it has that now.
We're going from a pair of A6's to a 2009 Jetta TDI wagon (with that huge sunroof that you can't get in an Audi, and dual-zone climate control, just like the Audis)



DieselRulesDieselRules - 7/17/2008 5:46:19 PM
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Sounds like a good choice of location. There's already a lot of auto-related infrastructure nearby. For example the company that builds the electronics for the dashboards of Nissan's pickups is in Tennessee.

VW has to do something about its US$60/hour labor costs in Germany if it wants to sell more higher-end vehicles (which are mostly built in Germany, with the exception of the Touareg in Bratislava).
Plus, large sedans built here can be shipped to Mexico under NAFTA duty free, just as the small VW's made in Mexico move to the US and Canada as domestic vehicles.


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amazinBimmeramazinBimmer - 7/17/2008 7:31:06 PM
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hicks and rednecks making VWs..

will they key every car they make.??

i hate hoosiers


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IamEvilHomerIamEvilHomer - 7/18/2008 1:55:07 AM
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another racest coment on Auto Spies from Amazing Bimmer


DieselRulesDieselRules - 7/18/2008 12:32:30 PM
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cousins of the hicks and rednecks that are building the MB M-class, no doubt.
Close to where NASA does its most advanced development work.
Bet there's a lot of hicks and red-necks working at NASA too!
(sarcasm intended)



chewychewy - 7/18/2008 2:31:46 PMView My AgentSpace
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BMWs are made in the south too.



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