Volkswagen AG Chairman Martin Winterkorn said Wednesday that the billions of dollars the company is investing in North America shows the market is key to the automaker.
"It's one of the most important markets," Mr. Winterkorn said after touring the $1 billion Chattanooga factory that's scheduled to start producing cars for sale early next year.
During a day-long stopover in Chattanooga in which he and others test drove new-model VWs on city streets, Mr. Winterkorn lauded the unfinished plant and the midsize sedan its workers will make that is aimed at American car buyers.
"I'm sure the car will be a great success in the U.S.," he said.
Gov. Phil Bredesen, who checked out the plant's new $40 million, state-funded training center with the VW chief, called the factory "an anchor project" for Southeast Tennessee.
VW IN U.S.2010 sales and percent change (VW brand only)January: 18,019, up 41.4 percentFebruary: 18,116, up 32.6 percentMarch: 22,148, up 40.9 percentApril: 23,135, up 42 percentMay: 23,543, up 20.3 percentJune: 21,051, up 10.6 percentTotal: 126,012, up 29.9 percentSource: Volkswagen of America
He cited "a halo effect" that Volkswagen and the new plant will have on economic development in the region.
The governor also said he reassured Mr. Winterkorn there will be continuity related to the automaker's ties with state government even after he leaves office in January.
Along with Mr. Winterkorn were VW board of management members Jochem Heizmann, Francisco Xavier García Sanz and Christian Klingler; and Rupert Stadler, chairman of the management board of Audi AG. VW officials have said that Audi production could work at the Chattanooga plant at a later time.
Mr. Winterkorn, who met with VW Chattanooga CEO Frank Fischer and plant managers and received detailed briefings about each of the factory's key units, said the facility is looking "very nice."
"I'm deeply impressed by the progress of the project," he said. "I look forward to being in Chattanooga again for the opening of the factory."
Some estimates put VW's North American investment at $5 billion as it builds the Chattanooga plant, expands and improves its Mexico operations and designs vehicles specifically for the market.
Earlier this month, VW officials said the company plans to invest $1 billion in Mexico over three years.
Mr. Heizmann, who oversees VW production worldwide, reaffirmed the carmaker's interest in an engine factory in North America. Chattanooga officials have said they're pitching the city for that project.
Hamilton County Mayor Claude Ramsey said Mr. Winterkorn "loves the community and the plant."
Mr. Ramsey said the yet-unnamed VW sedan is "a good-looking vehicle." Workers at the plant have been making test versions of the car.
Mayor Ron Littlefield said Mr. Winterkorn's visit and the plant are another step in "Chattanooga becoming a world-class city."
Tom Edd Wilson, the Chattanooga Area Chamber of Commerce's chief executive, said that "you can't go through the plant without being very impressed."
The Chattanooga plant is expected to employ more than 2,000 people when fully operational.
Volkswagen is targeting a tripling of sales in the U.S. to 1 million units by 2018. The automaker only has a 3 percent market share in the U.S.
The company sees North America as vital to its efforts to overtake Toyota as the world's No. 1 car maker by sales by 2018.