Staff photo by Dan Henry/Chattanooga Times Free Press
Guenther Scherelis, general manager of communication for Volkswagen’s Chattanooga operation, left, and Frank Fischer, CEO of VW’s Chattanooga operations, converse after a news conference where they spoke about the 500 employees that the company’s new supplier park will bring into the area.
Volkswagen's supplier park will initially employ about 500 workers, and the German automaker plans to try to increase that number, officials said Friday.
"We'll keep on pushing to expand the park," said Frank Fischer, chief executive of VW's Chattanooga operations.
Six companies Mr. Fischer would not immediately name will move into the supplier park and provide about 16 components to the car VW plans to produce. The supplier area will open in June next to the carmaker's $1 billion factory that is to employ over 2,000 people.
Mr. Fischer said two 223,000-square-foot buildings will occupy the 41-acre supplier park at Enterprise South industrial park.
The suppliers are expected to be publicly identified in March after contract negotiations come to a close, he said.
Trevor Hamilton, the Chattanooga Area Chamber of Commerce's vice president for economic development, added that its officials are discussing financial incentives for the suppliers.
"We're working in partnership with VW," he said.
The companies in the supplier park will assemble such components as exhaust systems, axles, seats, headliners and door panels, according to VW.
In addition, other parts including fuel tanks, floor carpeting and center console kits will be brought in and readied for production which is slated to start in the first part of 2011.
Chattanooga Mayor Ron Littlefield said people are seeing the start of "something transformational" in the city.
"This is another good day," said Hamilton County Mayor Claude Ramsey about the 500 jobs. "I look forward to the next announcement."
Hans-Herbert Jagla, executive vice president of human resources for VW in Chattanooga, said it has hired about 350 workers of its 2,000 employees so far. He said the majority of them are from the area. As production workers start to be hired this month, he expected increasing numbers of people from the area to gain jobs.
Mr. Hamilton said the supplier park jobs are another step to realizing the vision of Enterprise South. The idea was to attract an anchor tenant and then have other companies come and create jobs as well.
SUPPLIER PARK PARTS
* Exhaust systems
* Axles
* Brake corners
* Body fascia
* Door panels
* Tire and wheels
* Fuel tanks
* Floor carpeting
* Wire harnesses
* Center console kits
Source: Volkswagen
The supplier park is being developed by VW with a $21 million loan from Bank of America.
Mr. Fischer said the VW plant project is "completely on track."
"I'm really happy to announce 500 more jobs," he said.
Also Friday, SL Tennessee in Clinton, Tenn., named as VW supplier last month, announced it will undertake a $35 million expansion and create 300 more jobs to provide parts to auto companies.
"SL Tennessee's expansion is a testament to the strong business climate we've worked hard to create," Gov. Phil Bredesen said.
