ERIN EDGEMON, July 15, 2008
Posted: Tuesday, July 15, 2008 12:53 pm

Volkswagen's decision to build a automotive production facility in Chattanooga could be a boon for the Middle Tennessee market as well, said Rutherford County's chief economic development official.

"The tireless effort of Gov. Bredesen, the State of Tennessee Department of Economic and Community Development, Tennessee Valley Authority, the Chattanooga Dept. Of Economic Development and the elected officials is one to be congratulated," said Holly Weber. "Their efforts will bring opportunities for our existing automotive suppliers and give all of us the opportunity to recruit additional suppliers into the market."

Volkswagen Group of America Inc. announced Tuesday morning that it will build a U.S. automotive production facility in Chattanooga where it will produce a car designed specifically for the North American consumer and invest $1 billion in the economy. The facility will bring about 2,000 direct jobs to the tri-state area.

The company will build the facility in the Enterprise South Industrial Park, located 12 miles northeast of downtown Chattanooga, stated a VW press release. 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.

Rutherford County is "well-positioned along I-24 to be competitive for projects and also give our existing suppliers additional opportunities," Weber said early Tuesday afternoon.

Overall, Weber said the announcement is a "huge boost for Chattanooga and the Tennessee economy.

"This also places Tennessee in the top ranks having located three major assembly facilities," she said including Nissan's assembly plant in Smyrna and a General Motors plant in Spring Hill.

"In addition, having three major automotive manufacturing facilities will enable the state to be better positioned for additional research and development opportunities and diversify our base in the automotive sector," Weber said.