published Tuesday, June 4th, 2013

VW generates 12,400 jobs in Chattanooga area, study shows

Chanee Baker installs a tunnel shield to the chasis of a Volkswagen Passat on the production line.
Chanee Baker installs a tunnel shield to the chasis of a Volkswagen Passat on the production line.
Photo by Tim Barber.

A new study on the Volkswagen plant’s impact on the Chattanooga area shows it has fueled about 12,400 direct and indirect jobs.

Also, VW, its suppliers and related businesses are injecting payroll worth $643 million a year into the economy, said Dr. Bill Fox, who heads the University of Tennessee Center for Business and Economic Research.

“You hardly need for me to tell you how important VW is to the community,” said Fox today at the Mayors Industry Appreciation Breakfast.

Fox said that automotive production plants such as VW’s uniquely stimulate an economy.

He estimated that the average salary for VW’s 2,415 direct jobs is $66,000 a year.

“Then people spend money in grocery stores, then they buy houses,” Fox said. “The multiplier is much greater for automotive than any other industry.”

See more in Wednesday’s Times Free Press.

Tour Volkswagen's Chattanooga paint shop
Production of the all-new Volkswagen Passat, specifically designed for the American market, is running full-speed inside the paint shop at the company's Chattanooga facility, with more than 600 cars being painted each day.
about Mike Pare...

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 ...

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