VW Chooses Tennessee For New Plant
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| Governor Phil Bredesen, right, with Volkswagen Group of America President and CEO Stefan Jacoby at the company's announcement in Chattanooga Tuesday. |
Volkswagen Group of America, Inc. announced Tuesday that
it will build a U.S. automotive production facility in Chattanooga, Tenn., 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."
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 Interstate 75. Initial production
capacity for the facility is anticipated to be 150,000 vehicles, including a new midsize sedan
designed specifically for the North American market. Production is scheduled to begin in early
2011. 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.
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| ECD Commissioner Matt Kisber, middle, shaking hands with Jacoby. At right, Governor Bredesen holds a special edition of the Chattanooga Times Free Press proclaiming "It's Chattanooga!" |
"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
Tennessee Gov. 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."
Read the full press release here.
Tennessee Company Invited to Japan
Kingsport-based Puffin Innovations is one of 60 companies chosen nationwide by the Japanese External Trade Organization to travel to Japan next month. The companies will work to establish their international business presence through networking opportunities and other avenues.
Puffin Innovations, which makes robotic ice cream machines for Discovery Ice Cream, announced last April that they will establish an Asian operation headquarters in Japan.
"We are working to finalize all of the details in the upcoming weeks," said Allan Jones, Puffin Innovations CEO. "This will give us a local presence in a very important market. This also puts us closer to key innovators and suppliers.
"We were honored to be selected by JETRO to participate in this prestigious program. We are thankful for the opportunity to establish operations in Japan as well as introductions to potential key partners, which will position us for explosive growth in Asia."
"JETRO is inviting only 60 companies from all over the world this year," said Kazumi Iino, Tennessee JETRO business advisor. "Only prominent companies were invited in the past. I'm really glad that a Tennessee company was chosen for this elite group of companies."
In an effort to promote direct investment in Japan by Tennessee companies, JETRO will also assist Tennessee companies in exhibiting at several trade shows throughout 2008. JETRO is providing roundtrip airfare, hotel accommodations and booth registration for both companies. Companies must apply to be considered.
For more information on JETRO or the the invitational programs below, contact Kazumi Iino at kazumi.iino@state.tn.us or visit www.tnecd.gov/jetro/main.htm.
2008 Japanese Trade Shows for which JETRO Is Offering Assistance to Companies:
SEMICON JAPAN 2008
Dates: Wednesday, Dec. 3 to Friday, Dec. 5, 2008.
Target Industry: Semiconductors.
Application Deadline: July 18, 2008.
Nagoya Eco Clean Car Fair 2008
Dates: Friday, Nov. 7 to Sunday, Nov. 9, 2008.
Target Industry: Automobiles.
Application Deadline: July 25, 2008.
Hokkaido Technical Information & Business Exchange Fair 2008
Dates: Thursday, Nov. 13 to Friday, Nov. 14, 2008.
Target Industries: Information technology, biotechnology, environmental engineering, electrical machinery.
Application Deadline: July 25, 2008.