In addition to the 2,400 Tennessee workers directly employed by Volkswagen, the study projects that Volkswagen’s $704 million investment in the Chattanooga plant expansion, including the opening of a new North American Engineering and Planning Center, has the potential to:
-- Generate $217 million of new income and more than 5,300 indirect and direct jobs in Tennessee during the construction and tooling phase
-- Create roughly 9,800 jobs, once the plant is fully operational, including 1,800 potential jobs at the production plant, 200 engineering jobs at the VW North American Engineering and Planning Center, as well as positions at auto parts suppliers, and other jobs throughout Tennessee
-- Be responsible for $370 million in additional annual income, once the plant is fully operational
“Extensive supplier linkages and good incomes earned by Volkswagen employees account for the significant employment gains and economic multiplier effects in Tennessee,” said William Fox, the study’s author and Director of the Center for Business & Economic Research at the University of Tennessee. “This includes jobs in many industries across the state, such as grocery stores, restaurants, shopping malls and construction.”
Construction for the Volkswagen Chattanooga expansion project is currently underway, and is expected to be completed during the summer of 2016. Production of the Volkswagen midsize-SUV is scheduled to commence at the end of 2016, marking the second Volkswagen model to be produced in Chattanooga, in addition to the Passat.
“The study underscores Volkswagen’s commitment to Tennessee, and we are excited to grow our team and the Chattanooga plant as we gear up for the production of our first-ever seven-passenger SUV for the U.S. market,” said Christian Koch, President and CEO, Volkswagen Chattanooga. “We appreciate our partnerships with Hamilton County Mayor Coppinger and Chattanooga Mayor Berke, as well as Governor Haslam, for their ongoing support of Volkswagen’s expansion in Chattanooga.”
-- Release courtesy of Volkswagen