State plans to pursue VW engine facility

While Volkswagen of America’s plans for a U.S.-based engine plant remain unclear, Tennessee’s chief economic recruiter says if the German auto giant does decide to build such a facility, the state intends to compete for it.

“At this time, we and everyone else are awaiting information on that project, and when that information comes forward we will pursue that,” Economic and Community Development Commissioner Matt Kisber said. “I can assure you we will do all we can to make sure — that makes sense — to make sure that that’s a Tennessee facility.”

Mr. Kisber’s comments came during a question-and-answer session at the state’s recent annual Economic and Community Development conference in Nashville.

Volkswagen’s July 15 announcement that it would locate its $1 billion auto assembly plant in Chattanooga was a major topic of discussion at the conference, along with ongoing state efforts to secure manufacturers who will supply VW. The plant itself is expected to generate 2,000 jobs.
Volkswagen spokeswoman Jill Bratina said the company “has made no decisions” about an engine plant.

“We’re really now just focused on getting the production facility up and running in Chattanooga,” she said.

Meanwhile, Ms. Bratina tried to bat down concerns raised by an Associated Press story on Thursday in which U.S. Sen. Lamar Alexander, R-Tenn., was quoted saying that, if the nation’s ongoing financial crisis isn’t resolved, the planned Chattanooga assembly plant could be jeopardized.

He said VW officials told him last week they were having problems obtaining the $300 million they borrow each month to make car loans.