MEDIA INFORMATION
FOR RELEASE: May 27, 2015, 9:30AM ET
CONTACT:
Carsten Krebs
703-364-7165
[email protected]
STUDY SHOWS VOLKSWAGEN CHATTANOOGA EXPANSION COULD ADD 9,800
JOBS AND $370 MILLION TO THE TENNESSEE ECONOMY
—University of Tennessee Study Underscores the Role of Incentives as a Driver of Economic
Growth—
Herndon, VA (May 27, 2015) – A University of Tennessee Center of Business and Economic
Research (CBER) study released today indicates that the expansion of Volkswagen’s
Chattanooga manufacturing facility to produce a new midsize-SUV and the opening of a North
American Engineering and Planning Center could create approximately 9,800 jobs and add
$370 million in additional annual income, once the plant is fully operational.
“The findings in the CBER study demonstrate that the incentive package recently passed by the
Tennessee legislature will result in an economic growth multiplier of several times the state’s
investment,” said David Geanacopoulos, Executive Vice President for Public Affairs and
General Counsel, Volkswagen Group of America, Inc. “We would like to thank Gov. Bill Haslam
and Economic and Community Development Commissioner Randy Boyd for their leadership in
fostering a business environment within Tennessee that is mutually-beneficial for the state and
local economy as well as for companies like Volkswagen that have operations in the state.”
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 midsizeSUV 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 sevenpassenger 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.”
The CBER study is commissioned by Volkswagen Group of America. Findings within the study
are independent calculations by CBER researchers.
A full copy of the new study is available here: http://cber.haslam.utk.edu/pubs/bfox309.pdf.
CBER’s press release is available here: http://tntoday.utk.edu/2015/05/27/ut-study-volkswagenplant-expansion-add-9800-jobs-state-economy/.
About Volkswagen Group of America, Inc.
Volkswagen Group of America, Inc. is a wholly owned subsidiary of Volkswagen AG, one of the
world’s leading automobile manufacturers and the largest carmaker in Europe. It operates a
manufacturing plant in Chattanooga, Tennessee and houses the U.S. operations of a worldwide
family of distinguished and exciting brands including Audi, Bentley, Bugatti, Lamborghini and
Volkswagen, as well as VW Credit, Inc. Founded in 1955, the company's headquarters are in
Herndon, Va., Volkswagen Group of America brings vehicles to the U.S. that marry the science
of engineering and the art of styling, with the goal of offering attractive, safe, and eco-conscious
automobiles that are competitive and set world standards in their respective classes. The
company has approximately 6,000 employees in the United States and sells its vehicles through
a 992-strong dealer network.