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FAQs

library1. Why did the Volkswagen Group decide to build a production facility in the United States?

The decision to build a facility is a significant step forward in achieving the Volkswagen Group's goals of selling 1 million vehicles in the U.S. by 2018. It is a clear sign of the Volkswagen Group's commitment to the North American consumer and the U.S. market.

2. What ultimately led the company to choose Tennessee?

Volkswagen Group reviewed three excellent sites, all of which had the specific qualities necessary to build a production facility in the U.S. In the final analysis, however, the infrastructure already available and readiness of the Chattanooga site made it the most logical choice to meet the company's demanding start-of-production deadlines.

Chattanooga is an excellent fit for the Volkswagen culture, having an exceptional quality of life and a long manufacturing tradition. And, Volkswagen Group's focus on sustainable mobility and environmentally responsible manufacturing are right in line with the city's strong environmental commitment.

3. What is the size and scope of this project?

This project includes a $1 billion investment by the Volkswagen Group to build a U.S. production facility in Tennessee.

4. What will the company produce at the site?

It is expected the facility's initial production will be 150,000 automobiles. The vehicles will be a new midsize sedan designed specifically for the U.S. market.

5. When will the site be up and running?

Production is expected to begin in early 2011.

6. Where is the site located?

Enterprise South is 1,350 developable acres surrounded by a 2,800-acre buffer to the east and 128-acre buffer to the west. When complete, Enterprise South will include 3,000 developable acres while retaining both buffers. The site is 12 miles northeast of downtown Chattanooga.

7. What can you tell us about the incentive package being offered by the State?

Volkswagen of America received an attractive, comprehensive package of incentives for the new facility from Gov. Bredesen's office and the Tennessee Department of Economic and Community Development. The statutory incentives are tied to job creation and capital investment. Additional support includes assistance for public infrastructure and job training, each designed to ensure the local economy best leverages Volkswagen's investment to benefit the local work force and ensure the facility's success.

8. What is the company's position on environmentally responsible manufacturing?

Volkswagen Group has a longstanding commitment to sustainable mobility and environmentally responsible manufacturing, and this plant will be developed and run based on these standards. Manufacturing can be compatible with a clean environment, and we believe the future depends on a dedicated partnership between the two.

9. How many people will be employed at the facility?

Volkswagen will bring more than 2,000 direct jobs to the area and will add a significant number of jobs in related sectors. It is expected that these jobs will come from the tri-state area, pulling from the labor force of Tennessee, as well as Georgia and Alabama. This area has a deep base of well-trained labor, and there are excellent engineering and manufacturing programs at the universities and technical colleges.

10. What kind of jobs will be available?

The jobs will include professional positions, high-skilled maintenance workers and production team members who will form the majority of the workforce.

11. Do you anticipate suppliers co-locating at the facility?

Yes. Building a new plant in the United States gives the company a strategic advantage. Together with localized parts and component sourcing, this plant will enable Volkswagen to be cost competitive with its products. Volkswagen is offering a supplier park next to the plant on the site.

12. What's the process for people interested in applying for jobs at the company?

Visit the website www.vwjobschattanooga.com to view or apply for available positions. Applications for professionals or high-skilled mainentance members are being accepted continuously. Applications for production team members are not currently being accepted, as the application period ended on November, 15, 2009.

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Facts At-A-Glance

$1B. Volkswagen's investment in the Chattanooga facility

$648M. Local and state contracts awarded to-date. Includes $340 million awarded by the city, state and Volkswagen to construction contractors and subcontractors and $307 million in annual contracts with local and state parts suppliers.

$230M. Additional construction awards in next 20 years

$5.28M. Volkswagen's support of Partners In Education in Tennessee

2,000 Direct jobs

9,500 Estimated supplier-related jobs

90% Contracts awarded

50% Approximate Tennessee-based project companies

10% Minority- and women-owned businesses contracted for plant construction by start of production

10% Minority- and women-owned businesses contracted for vehicle production by 2015 (5 percent by 2010)

— as of December 2009

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