Could Volkswagen be in Chattanooga's Future?

[Hankster]

Nice to see the Chatty site using places in Huntsville as assets.

On the surface most things on the list could go either way with Chattanooga

having advantage in the interstate system while Huntsville has the advantage in air facilities and docks(Decatur)

Infrastructure slightly to Chattanooga because most of it is in place, but does it fit VW's requirements?

Education edge goes to Huntsville with easily over 20,000 engineers in the area.

http://www.al.com/business/birminghamnews/....xml&coll=2

Volkswagen might find the region attractive because of a collection of high-tech companies in Huntsville and a highly skilled work force, said Michael Randle, editor and publisher of Birmingham-based Southern Business and Development magazine and a Web site, www.southernautocorridor.com.

"The labor shed up there is incredibly talented because of the cluster of companies they have," he said. "It's just a happening place with incredible deals, and companies like to get on the bandwagon."

In addition, Toyota has done well with its engine assembly plant in Huntsville, Randle said. The facility employs about 1,000 people.

"Toyota has proven that Huntsville in general can draw all the way to Nashville in terms of labor," he said.

Volkswagen said last week it had narrowed its site search for a potential U.S. factory to Alabama, Tennessee and Michigan. Since then, analysts have zeroed in on TVA-certified megasites in Alabama and Tennessee as likely contenders.

Besides the TVA site near Athens, other such sites include those near Chattanooga and Clarksville, Tenn. Certification means the sites have met certain criteria, including those for access, utilities and work force.

I think both sites (Limestone & Enterprise South) are close enough together that each can tout places in either Huntsville or Chattanooga as assets. It wouldn't surprise me that the winning site is a TVA site as others have noted. These sites tend to be more ready than others and that's a very important consideration for VW. I, for one, would be both shocked and amazed if VW chooses Michigan.

[miami1855]

I agree that Clarksville's Commerce Park megasite is a long shot. It is only a year or two old, and has only been pitched secretly to a couple of companies so far.

Do you all think that the large German population in Clarksville would make any difference? regardless, I think either site chosen will be a great boost for Tennessee.

[Hankster]

Porsche, Volkswagen and VW's Audi luxury division may build cars together at a proposed U.S. plant in a bid to save costs and reduce the burden of the rising euro, a German magazine reported.

Building in tandem at one U.S. factory would highlight the potential for the automobile ''empire" of the Piech and Porsche families, who through their holdings in Porsche are the largest shareholders in Volkswagen.

The article confirmed that VW is still considering only Alabama, Tennessee and Michigan for the possible plant.

Plans for the U.S. factory will likely be presented to Volkswagen's supervisory board before the end of July.

Audi CEO Rupert Stadler has said production could start at a U.S. plant in 2010 at the earliest.

[flith]

The Chattanooga Chamber of Commerce had a closed meeting all day at the Chattanoogan last Thursday. Cooker, Bredesen, and TN economic officials were also in town with some foreign visitors....

[MidTenn1]

The Chattanooga Chamber of Commerce had a closed meeting all day at the Chattanoogan last Thursday. Cooker, Bredesen, and TN economic officials were also in town with some foreign visitors....

There seem to be all kinds of signs pointing to the announcement being in Chattanooga's favor. That includes a few snippets of inside information I have about some preliminary work being planned at an advanced level.

I won't be surprised at all if Chattanooga gets the plant.

[flith]

There seem to be all kinds of signs pointing to the announcement being in Chattanooga's favor. That includes a few snippets of inside information I have about some preliminary work being planned at an advanced level.

I won't be surprised at all if Chattanooga gets the plant.

I hope you are right, but http://www.southernautocorridor.com/News/N...26/Default.aspx states that a source told them thet Limestone County would get it. It's the same source that told them about Kia and Hyundai.

[Hankster]

This is definitely bad news for Chattanooga getting VW. That magazine did correctly pick the Kia and Hyundai sites. However, they missed when trying to predict Toyota. Therefore, there's still hope. As Yogi says, "It ain't over 'till it's over".

[flith]

An article in the Times Free Press states that for the last week a significant amount of people and equipment have been working 10 hour days clearing the main tract in Enterprise South. Speculation is that VW wants a better look at the "lay of the land". I'll take that as a sign thats it not over yet.

[Hankster]

An article in the Times Free Press states that for the last week a significant amount of people and equipment have been working 10 hour days clearing the main tract in Enterprise South. Speculation is that VW wants a better look at the "lay of the land". I'll take that as a sign thats it not over yet.

Sounds promising to me.

[flith]

Channel 9 has an interesting speculative article on Enterprise South.

They have put together the following bits of info:

May 15 - Sen Corker hosted a dinner for 35 VW reps at his house

May 17 - SouthernAutoCorridor.com quotes an anonymous source that Limestone County has the plant

May 28 - Sen Corker states "I think for anybody to make specific comments about where we are in the negotiations today, with whoever we might be talking about, actually are unfounded, I have different groupings of information, if you will." (You have to love politician speak)

On Enterprise South at Gate 9A Road there is a security guard blocking access, that won't comment on whats going on. City and County public works trucks can be seen entering and leaving. Dump trucks leave loaded and return empty.

[flith]

Further speculation from Channel 9

They insinuate that it has to be a done deal whatever it is because of the amount of work being done with so much security in place.

Former TN Governor Alexander said he was in the meeting with VW. He stated, “We were trying to persuade Volkswagen that Chattanooga’s the right place for them, They’re choosing probably between Alabama and Tennessee.”

[Hankster]

I certainly hope that all the speculation is true that VW is coming. Others are predicting Alabama. Nobody seems to give Michigan a chance. Only time will tell.

[Hankster]

I heard that VW plans to build an engine and transmission plant as well. Both the Alabama Limestone County site near Huntsville (rumored to be the most likely Alabama site) and Enterprise South are quite close to one another. Maybe one will get the assembly plant and the other will get the engine plant.

[flith]

Hamilton County passed a resolution unanimously, with no discussion to apply for a $750000 grant from TN Dept of Economic and Community Development, for further improvements at Enterprise South. The county will have to match $321430. A contract that was awarded to do site improvements at Enterprise South was increased by $780000.

[Hankster]

Hamilton County passed a resolution unanimously, with no discussion to apply for a $750000 grant from TN Dept of Economic and Community Development, for further improvements at Enterprise South. The county will have to match $321430. A contract that was awarded to do site improvements at Enterprise South was increased by $780000.

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

[MidTenn1]

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]

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.

[TRoberts]

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.

[TRoberts]

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]

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.

[TRoberts]

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...