123 replies to this topic

[PHofKS]

Hankster, on Jun 5 2008, 07:07 PM, said:

The big question is "Why exactly are they doing this?"  Were they directed by VW?

They do need to get a road built through there pretty soon, so they could be looking at funding for that. I will take a little longer to build this road, because of the unique soil and sub-surface conditons at this site, as I am told. The roadbed will have to be built, then allowed to settle and compact for up to one year, before final paving is done and opened to traffic.

Also, the new TDOT Regional Offices will eventually be constructed on the Enterprise South site on the new road. However, a building to house the new TDOT/Chattanooga Traffic Mangement Center (TMC) is being designed first and construction should start soon in order to have it open when the upcoming Intelligent Transportaton System (ITS) full buildout project is completed in a couple of years.

[flith]

PHofKS, on Jun 6 2008, 07:14 AM, said:

They do need to get a road built through there pretty soon, so they could be looking at funding for that. I will take a little longer to build this road, because of the unique soil and sub-surface conditons at this site, as I am told. The roadbed will have to be built, then allowed to settle and compact for up to one year, before final paving is done and opened to traffic.

Also, the new TDOT Regional Offices will eventually be constructed on the Enterprise South site on the new road. However, a building to house the new TDOT/Chattanooga Traffic Mangement Center (TMC) is being designed first and construction should start soon in order to have it open when the upcoming Intelligent Transportaton System (ITS) full buildout project is completed in a couple of years.

That road was already supposed to have begun if not finished.  When the paperwork swithed from the state to local officials for requesting matching Federal Transportation Funds, the ball was dropped somewhere.....

The last I heard was that TDOT Regional HQ was going in near Bonny Oaks, overlooking I-75 (on the East side) somewhere between US Express and Hamilton County's property.

[Hankster]

The word is that Alabama is willing to offer a $1 Billion in incentives to land the plant.  If this is true, we're most likely doomed.  This whole incentives thing is completely out of control.  Alabama's offer would work out to a ridiculous $500,000 per job created.  If they get the plant by offering them that much, I'm not sure who the winner would be other than VW.

[rtkenmore]

Hankster, on Jun 16 2008, 06:18 PM, said:

The word is that Alabama is willing to offer a $1 Billion in incentives to land the plant.  If this is true, we're most likely doomed.  This whole incentives thing is completely out of control.  Alabama's offer would work out to a ridiculous $500,000 per job created.  If they get the plant by offering them that much, I'm not sure who the winner would be other than VW.

Unfortunately for anyone else competing (but good for Alabama), they have a history of offering great incentive packages to land huge economic deals.  Alabama isn't in the top 5 automobile producing states in the country now for just no reason at all.  And keeping that in mind, Alabama has only had auto production plants for about 15 years now.

I think the most likely chain of events will be Alabama lands VW in the northern area of the state (most likely the TVA megasite being considered or the other site the city of Huntsville is trying to put together) and a few years from, VW's sister company Audi will seriously be considered for the Chattanooga site because of it's proximity.

This is basically what Hyundai did in Montgomery with the new Kia plant going into west Georgia.  If that's what happens, I think it's a win-win for both states.

[rtkenmore]

Hankster, on Jun 16 2008, 06:18 PM, said:

The word is that Alabama is willing to offer a $1 Billion in incentives to land the plant.  If this is true, we're most likely doomed.  This whole incentives thing is completely out of control.  Alabama's offer would work out to a ridiculous $500,000 per job created.  If they get the plant by offering them that much, I'm not sure who the winner would be other than VW.

Unfortunately for anyone else competing (but good for Alabama), they have a history of offering great incentive packages to land huge economic deals.  Alabama isn't in the top 5 automobile producing states in the country now for just no reason at all.  And keeping that in mind, Alabama has only had auto production plants for about 15 years now.

I think the most likely chain of events will be Alabama lands VW in the northern area of the state (most likely the TVA megasite being considered or the other site the city of Huntsville is trying to put together) and a few years from, VW's sister company Audi will seriously be considered for the Chattanooga site because of it's proximity.

This is basically what Hyundai did in Montgomery with the new Kia plant going into west Georgia.  If that's what happens, I think it's a win-win for both states.

[Hankster]

Actually, it turns out that the $1 Billion dollar figure was the estimated value of the Plant investment, not the estimated value of Alabama's incentive package.  This thing is still up in the air, and we'll just have to wait a few more weeks to find out which site get chosen.  The biggest negative about the Enterprise South site, clearing out, leveling and relocation of a stream, is in the process of being fixed.  I think Chattanooga's site is just as good as Alabama's and will actually be more ready than theirs since rail and highway infrastructure improvements at Chattanooga's site are already done.  My biggest concern, frankly, is the recent announcement that Alabama will build a $71 Million robotics education school near the site in Northern Alabama.  That's an attractive addition to their package.

[flith]

VW's global sales are up 2%.  

Hamilton County announced that Tennessee has increased the amount of a grand being used for work in Enterprise South has been increased from $750k to $1.25M.

[Hankster]

Probably no more than four more week before we have an announcement.  I hope all the site work helps us land this thing.  There are some who believe that both sites (Limestone, AL and Enterprise South) will win with one site getting the assembly plant and the other getting the engine plant.

[flith]

Hankster, on Jun 27 2008, 07:28 PM, said:

Probably no more than four more week before we have an announcement.  I hope all the site work helps us land this thing.  There are some who believe that both sites (Limestone, AL and Enterprise South) will win with one site getting the assembly plant and the other getting the engine plant.

If there are two plants it would be logical to use these two sites with road, rail, and water, connecting them.

[rtkenmore]

flith, on Jun 27 2008, 09:47 PM, said:

If there are two plants it would be logical to use these two sites with road, rail, and water, connecting them.

If there are two plants, I think the mor likely outcome is VW at one site and Audi's future US plant at the other.  Considering that VW owns Audi...

[Hankster]

According to a report in Auto Motor and Sport magazine over the weekend, Volkswagen's management board is set to decide July 8 on the site of its new U.S. production site.

Report

Edited by Hankster, 30 June 2008 - 04:09 PM.

[flith]

According to Metal Bullitien Ltd. Huntsville will get the plant and Chattanooga may get the engine plant as a runner up.

Edited by flith, 07 July 2008 - 09:13 PM.

[Hankster]

flith, on Jul 3 2008, 03:09 PM, said:

According to Metal Bullitien Ltd. Huntsville will get the plant and Chattanooga mayl get the engine plant as a runner up.

Personally, I'd be quite happy with that, if that's what happens.

[Hankster]

According to a publication in Germany, Alabama will land this plant.  I guess the best we can hope for is the engine plant.

[rtkenmore]

Hankster, on Jul 6 2008, 03:05 PM, said:

According to a publication in Germany, Alabama will land this plant.  I guess the best we can hope for is the engine plant.

I still think Chattanooga is more in the running than you guys think you are.  From everything I've read, yes, Alabama is going to land the VW plant and that is expected to be announced in the coming weeks.

What a lot of people don't realize is that Audi is looking to build an American assembly plant as well and will be scouting locations.  Audi is owned by VW and much of their products have some overlap in the parts and such.  I wouldn't be surprised to hear that Chattanooga is in the running to land the Audi assembly plant a couple years after VW starts manufacturing or even before.  They would work off the synergies of having two plants so close together and the mass of associated business that would come to the entire north Alabama and southcentral Tennessee area.

Take a look at central Alabama...  Hyundai opened their new plant in Montgomery in 2003 (I believe) and now just to the east of Montgomery in Georgia is a new Kia assembly plant (Kia being owned by Hyundai).

The Huntsville-Chattanooga connection with Highway 72 and CSX raillines is a great advantage to the two sites together.  Chattanooga may even have the coup de grace of landing BOTH the engine plant in the near term and the Audi manufacturing plant in the long run.

I think anyway around it, it's a positive for both states.

[Hankster]

rtkenmore, on Jul 6 2008, 05:40 PM, said:

I still think Chattanooga is more in the running than you guys think you are.  From everything I've read, yes, Alabama is going to land the VW plant and that is expected to be announced in the coming weeks.

What a lot of people don't realize is that Audi is looking to build an American assembly plant as well and will be scouting locations.  Audi is owned by VW and much of their products have some overlap in the parts and such.  I wouldn't be surprised to hear that Chattanooga is in the running to land the Audi assembly plant a couple years after VW starts manufacturing or even before.  They would work off the synergies of having two plants so close together and the mass of associated business that would come to the entire north Alabama and southcentral Tennessee area.

Take a look at central Alabama...  Hyundai opened their new plant in Montgomery in 2003 (I believe) and now just to the east of Montgomery in Georgia is a new Kia assembly plant (Kia being owned by Hyundai).

The Huntsville-Chattanooga connection with Highway 72 and CSX raillines is a great advantage to the two sites together.  Chattanooga may even have the coup de grace of landing BOTH the engine plant in the near term and the Audi manufacturing plant in the long run.

I think anyway around it, it's a positive for both states.

Thanks for your kind words.  I think VW/Audi would do well to have dual assembly plants in North Alabama and Chattanooga.  That would be an efficient and powerful manufacturing platform from which to grow.  Still, I'd rather be in the frontrunner's shoes for the VW plant which is coming first.  As people say, "A bird in the hand is worth two in the bush."  Kudo's to Alabama should you indeed land the plant.

[rtkenmore]

Hankster, on Jul 7 2008, 05:31 PM, said:

Thanks for your kind words.  I think VW/Audi would do well to have dual assembly plants in North Alabama and Chattanooga.  That would be an efficient and powerful manufacturing platform from which to grow.  Still, I'd rather be in the frontrunner's shoes for the VW plant which is coming first.  As people say, "A bird in the hand is worth two in the bush."  Kudo's to Alabama should you indeed land the plant.

Just remember, most news sources are putting Chattanooga as the frontrunner for the engine plant...  Which means that if Chattanooga ultimately got the Audi plant as well, they'd be doing better overall than Alabama with just the VW plant.

Just because you don't finish first doesn't mean you don't come out in the lead in the long run...

[flith]

rtkenmore, on Jul 7 2008, 07:10 PM, said:

Just remember, most news sources are putting Chattanooga as the frontrunner for the engine plant...  Which means that if Chattanooga ultimately got the Audi plant as well, they'd be doing better overall than Alabama with just the VW plant.

Just because you don't finish first doesn't mean you don't come out in the lead in the long run...

A while back I had read that the new VW plant may be a joint venture between VW/Audi and maybe Porsche.  It would seem logical that the engine plant would be a separate site.  However, the rapid decline in the dollar seems to have changed things quite a bit...  We'll see.

[flith]

In the TimesFreePress today they mention that the plant may build Jettas, an all new Passat size vehicle, Tiguan, and the Audi Q5 (source Automobilwoche).  Tennessee is a close second and Michigan is out of the running.

Volkswagen AG says it will probably announce a decision on its plans for a new U.S. plant after a supervisory board meeting July 15.  The managements recommendation will be today.

An www.al.com an article mentions that Tennessee's incentives package is larger than Alabama's and that has caught many officials by suprise.  Both packages were finalized and sent to VW's site-selection consultant  last Thursday.  The same source also stated last week that the AL site could meet VW construction time line while TN could not.

Edited by flith, 08 July 2008 - 06:29 AM.

[flith]

The decision has been delayed until next Tuesday.  It seems that the TN offer is more competitive than initially thought.

Edited by flith, 08 July 2008 - 01:03 PM.