Volkswagen Coming to Chattanooga!
Categories: Chattanooga Market Conditions, Chattanooga Real Estate News
By Andy Hodes, Realtor
Chattanooga has been chosen over two other sites for a new VW Plant that will begin operation in 2011, announced 
Volkswagen Group of America, Inc. (See below the full articles below from the Associated Press as well as Volkswagen’s announcement.) The new assembly plant will bring 2,000+ new jobs and over $1 Billion dollars in initial capital investments to our city plus lots of excitement to Chattanooga (more than you can believe). As well, additional investments and more jobs will be created through the ancillary plants that will supply VW’s main plant as it builds 150,000 vehicles a year in the Scenic City.
VW taps Tennessee for new US production site from Associated Press
Media Release from VW Group of America
This story started years ago when Hamilton County and the City of Chattanooga jointly purchased large tracts of land from the Federal government that previously housed a 9,000 acre army ammunition plant that manufactured ammunition for the war effort going back almost to World War I. Native Chattanoogans call it the “Volunteer Site” since we remember that the ammunition plant was called the Volunteer Plant after Tennessee’s nickname, the Volunteer State.
Over 2,000 acres was initially purchased (plus additional subsequent land purchases) to create the Enterprise South Industrial Park. In addition to the industrial park close to 2900 acres were designated as a buffer with parks and plenty of green space. The industrial site already had great rail access with two rail lines, good roads, a conducive topography, plenty of available water from the Tennessee River and just about the cheapest electricity rates in the country (”compliments” of the Tennessee Valley Authority). After the State of Tennessee added a dedicated exit ramp off of Interstate 75 in 2006, Enterprise South was certified as a “megasite” by TVA meaning it was ready for an auto assembly plant or some other major manufacturing site. But the goal was clear - we wanted an auto assembly plant.
Then the real work began with all the resources of the State, County and City, along with tons of help from others including the Chattanooga Area Chamber of Commerce. There was lots of interest in the site and in 2007, Enterprise South came in as a close second place to Mississippi for a Toyota assembly plant. It was a disappointment, but everyone kept pushing. Earlier this year, Volkswagen announced that they were considering sites in Tennessee, Alabama and Michigan for their very first North American assembly plant. The courtship began and the rumors started flying. All that ended today with Volkswagen’s announcement that Chattanooga is it. Production is expected to begin in early 2011.
This is great news for everyone in Chattanooga and especially the Chattanooga real estate market. VW and the ancillary plants will bring plenty of good-paying manufacturing jobs to Chattanooga building consumer confidence and allowing more families to buy homes and live the American dream. Back in the 1970s and 80s, Chattanooga lost these jobs as the steel industry suffered and many manufacturing jobs were outsourced overseas. Today’s news is a great “shot in the arm” and just confirms what we already know - Chattanooga, The Scenic City, is the greatest place to live in the world. Go Chattanooga! Go VW!
This entry was posted on Tuesday, July 15th, 2008 at 12:31 pm and is filed under Chattanooga Market Conditions, Chattanooga Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Volkswagen is coming to Chattanooga. What wonderful news. Chattanooga is a great place to live and is going to get even better.