VW Chattanooga Still In Suspense Over Potential Expansion

Aerial shot of the plant’s roof sign, via VW

The head of Volkswagen Chattanooga says whether his plant will add a new SUV is still up in the air. The facility employs about three thousand building the VW Passat, and sees its main rival to carry out the expansion as a site in Mexico.

Chattanooga’s been hoping for awhile to add a second vehicle, which the carmaker previewed as the CrossBlue. Frank Fischer runs the Tennessee plant, and told the Nashville Chamber of Commerce he was expecting a decision months ago.

The Mexican site has the upper hand in terms of labor costs, he says. Tennessee’s strengths lie in transportation efficiencies, and a strong supply chain. And Fischer says attracting more suppliers near Chattanooga is key in the long run, adding even if the plant is passed over for now, it will expand eventually.

Asked about Tennessee’s business climate, Fischer was reluctant to complain. He pointed toward a proposal unpopular with many companies, about guns in cars on employer parking lots. It’s currently awaiting the governor’s signature.