BY THE NUMBERS
* 58 - suppliers from U.S.
* 34 - companies from Mexico
* 8 - firms from Canada and rest of world
See VW officials talk about the importance of suppliers. Read other VW stories. Comment.
About 100 Volkswagen suppliers from across the world met in Chattanooga on Tuesday as their officials were briefed on doing business with the automaker.
“Supplier performance is one of the most critical elements,” said Tom Loafman, VW Group of America’s director of purchasing.
Some 225 manufacturing representatives heard what the automaker expects from them and had chances to ask questions.
Frank Fischer, VW’s chief executive in Chattanooga, said the carmaker wants to launch its new midsize sedan in early 2011 without any hitches.
“It’s an absolute priority,” said Mr. Fischer.
Mr. Loafman said if the quality of the cars coming off the assembly line isn’t the best, it will undermine the brand.
“You have to have the best quality from the start,” he said.
Mr. Fischer said VW wants parts providers as close as possible and it’s still working on a supplier park next to the assembly plant.
“I’m convinced we need to have onsite suppliers, but it needs to make economic sense,” he said.
Mr. Loafman said it’s “highly probable” there will be future announcements of suppliers building plants locally such as was done by Gestamp. That company this summer said it will provide VW with stamped parts for the new midsize sedan’s undercarriage.
But Chattanooga Area Chamber of Commerce officials have said while there is interest, the economy is weighing on decisions about building new facilities.
“All the ingredients don’t fall into place as they did two years ago,” said Tom Edd Wilson, the Chamber’s CEO recently.
Gov. Phil Bredesen said last weekend in the city there will be “a halo effect” created by VW, prompting companies to be interested in the state. A similar effect occurred when the Tennessee Titans were attracted to Nashville, he said.
“I think VW is in the same category,” Gov. Bredesen said.
Rollie Johnson of ThyssenKrupp Waupaca said VW on Tuesday effectively explained its quality requirements. He said his company will supply disc brakes from Wisconsin.
Frank Palazzolo, sales manager for McKechnie Vehicle Components, said his company will supply plastic injection molded parts from its Lexington, Ky., facility or another in South Carolina. Volkswagen is committed to its supply base, he said.
VW is continuing to make decisions about its supplier network, according to the company, and a similar conference could be held in December.
Mike Pare, the deputy Business editor at the Chattanooga Times Free Press, has worked at the paper for 27 years. In addition to editing, Mike also writes Business stories and covers Volkswagen, economic development and manufacturing in Chattanooga and the surrounding area. In the past he also has covered higher education. Mike, a native of Fort Lauderdale, Fla., received a bachelor’s degree in communications from Florida Atlantic University. he worked at the Rome News-Tribune before ...
I'm interested in finding out where the plant is located and how do I go about getting a application in. I live in Strawberry Plains and I'm not familiar with the area, but am very interested in putting in my resume. Could someone who lives local please if you have any information let me know asap. Thank You Missy Hickman
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