A new study shows that Volkswagen Group of America was responsible for 16,794 direct and indirect jobs in Tennessee and provided more than $1 billion in total labor income in 2015.
Ernst & Young also estimates that the German auto maker helped generate $7.8 billion of gross output for the state.
Nationally, Volkswagen Group of America operations and its dealers were responsible for 119,830 direct and indirect U.S. jobs in 2015, generating nearly $25 billion of economic output, the study found.
VW has a manufacturing plant in Chattanooga that is expected to employ about 3,500 people by mid-April as the company ramps up production of a new midsize sport utility vehicle. The company also has started up an Engineering and Planning Center adjacent to the factory.
Volkswagen Group of America President and CEO Hinrich J. Woebcken announced the study's results Tuesday at the 2016 Auto Conference in Los Angeles, hosted by the National Automobile Dealers Association and J.D. Power.
"The Ernst & Young study shows the broad reach and impact of VWGoA's operations, the strength of our U.S. dealer network, and the important role the company plays in spurring economic growth and U.S. jobs," said Woebcken in a statement. "We are tremendously proud of the positive impact we've had on the U.S. economy thus far, and are confident that our long-term investments in this market will continue to benefit communities throughout the nation."
Other key findings show that Volkswagen Group of America:
* Supported 45,866 direct jobs, including positions throughout U.S. corporate facilities and VW and Audi dealerships.
* Supported 73,944 indirect and induced jobs, including positions with U.S. suppliers and throughout the manufacturing sector.
* Created 2,057 new jobs based on its capital investments, including 1,600 supported by the expansion of Volkswagen's Chattanooga plant.
* Provided more than $7.1 billion in employee compensation, which helped generate $24.8 billion of U.S. economic gross output.
* Contributed $2.4 billion of federal, state and local taxes, including $280 million in customs duties and fees, $550 million of direct-employee related taxes, and property and payroll taxes.
* Donated more than $4.3 million in charitable giving to 122 organizations.