Volkswagen’s new $1 billion assembly plant is bringing jobs and investments beyond Chattanooga to other areas of the state.
Roane County, located in the Cumberland Plateau about 90 minutes from Chattanooga, has been selected for a $40 million VW project. The 400,000-square-foot Southeastern Regional Distribution Center will ship domestic auto parts for the Chattanooga-made Passat and other Volkswagen and Audi vehicles. The distribution facility will serve more than 100 dealers in the region as well as others in the United States, Canada and Mexico.
When it’s completed in 2013, the facility will employ about 45 people with an annual payroll of more than $3 million. Initially, the facility will serve as a redistribution center to service warehouses. Later it will be expanded to include a parts distribution center. The construction will accommodate future expansion up to an additional 200,000 square feet. During construction, the local economic impact is expected to be about $10 million.
“Our continued investment in the U.S. market affirms that Volkswagen is dedicated to the economic vitalization of the communities where we do business,” says Rawdon Glover, executive vice president of aftersales, Volkswagen Group of America.
The new distribution center will be built on 54.6 acres in the Roane Regional Business and Technology Park adjacent to Interstate 40 and just a few miles from Interstate 75.