Volkswagen’s plan to build its upcoming midsize crossover at its Chattanooga plant in Tennessee will result in the creation of 2,000 new jobs in the area. That much you might have already known. But what might be news to you are the economic ripple effects associated with production of the 7-seat SUV at the plant that will be experienced by Chattanooga residents, and Hamilton Country, which houses the city.
“Hamilton County is pleased to partner with Volkswagen as they create 2,000 new family-wage jobs which will also generate very positive economic ripple effects for residents throughout our community,” said Hamilton County Mayor Jim Coppinger. “By working with Volkswagen to build on the tremendous success of their initial job creation project, we are establishing a foundation for continuing economic growth for years to come.”
When it comes to pure numbers, VW has created 12,400 jobs in the Chattanooga region, helping build the area’s middle class.
“Volkswagen is one of Chattanooga’s largest and most valued employers. They have brought 12,400 living-wage jobs to our region, employed Chattanoogans and helped build our middle class. This expansion [associated with building the midsize SUV] will result in a huge capital investment and thousands of new jobs,” said Chattanooga Mayor Andy Berke. “From day one, the City and County have worked hard to see today become a reality, when we can announce that Volkswagen will be adding more jobs, more investment and expanding their presence in Chattanooga.”
Additionally, the expansion associated with building the new SUV will allow the Chattanooga area to more easily recruit additional automotive suppliers, which would help VW build cars thanks to a larger supply chain base. The move could theoretically turn the area into an automotive nucleus in the south of the United States.
“This announcement [to build the upcoming SUV at the plant] is great for Chattanooga and great for Volkswagen,” said Ron Harr, president & CEO of the Chattanooga Chamber. “Thanks to Volkswagen’s expansion, we will have a much easier time recruiting additional automotive suppliers to help them build out their supply chain while also cementing Chattanooga as ‘The Center of the Automotive South.”