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Gov. Haslam: VW Chattanooga could face job problems if cars don’t sell

The Chattanooga Volkswagen plant between Tyner and Ooltewah is shown.
The Chattanooga Volkswagen plant between Tyner and Ooltewah is shown. The Chattanooga Volkswagen plant between Tyner and Ooltewah is shown.

NASHVILLE — Gov. Bill Haslam is urging Volkswagen to quickly address consumers’ worries about the company’s vehicle emissions-testing scandal, saying his “primary” concerns are the German auto manufacturer’s auto sales and the impact on sales and jobs at VW’s Chattanooga plant.

“My primary concern is getting Volkswagen back to where they’re in a mode to sell cars,” Haslam told reporters in Nashville this morning. “Because if they’re not selling cars, those 2,000-plus people who are working in Chattanooga’s life is going to be different.”

photo Tennessee Gov. Bill Haslam

Volkwagen, the world’s largest auto manufacturer, finds itself in a crisis in both the U.S. and Europe following revelations the company evaded emissions standards through use of a “defeat” computer program aimed at fooling tests on some diesel-fueled models.

“We really have two concerns,” Haslam said. “No. 1, we have an investment in the original plant and then the expansion. “Second, we obviously have a vested interested in their success, I mean, in them selling cars. And so we’re urging them to get everything out in front of everybody as quickly as possible so existing customers can understand what the solution is going to be and that Volkswagen can have a clear path forward.”

Tennessee government provided an estimated $358.2 million of the original $577.4 million in incentives that drew Volkswagen to located its Passat in Chattanooga with local governments providing the remaining $219.2 million.

And this year, Tennessee, Chattanooga and Hamilton County governments committed to more than $260 million in incentives for a new line of SUV production.

Asked if he has concerns about VW production and sales’ impact in Chattanooga, the governor said, “sure, that’s one of my primary concerns. Obviously there’s a lot of questions out there in the consumer’s mind. I think that’s why it’s really important for Volkswagen to come out quickly and say, ‘Here’s what we’re going to address our existing customers and here’s why we can assure potential customers that they’re going to get the vehicle they think they’re buying.'”

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