Before Volkswagen, even before Toyota considered Hamilton County as a site for an auto plant in 2007, officials talked with Magna International about it assembling vehicles in the city.
"We've been talking with Magna for years," said Chattanooga Mayor Ron Littlefield. "They had been toying with the idea of being an assembler. Mayor (Claude) Ramsey and I visited with them several times in their offices in Michigan."
Earlier this week, the city and county landed the company as an auto parts supplier. A subsidiary, Magna Seating, announced it will join Hollingsworth Logistics to form a company making seats here to supply the VW plant under construction in Chattanooga.
The joint venture will create 120 jobs, according to the companies.
Magna, one of the world's biggest auto parts suppliers, already assembles vehicles in Europe on a contract basis for some of that continent's biggest car companies though Magna Steyr.
With a key factory in Graz, Austria, Magna Steyr currently has contracts to make a Mercedes-Benz, a BMW Mini, an Aston Martin, and a Peugeot. It is the largest vehicle contract assembler worldwide.
MAGNA'S FOUNDERFrank Stronach, Magna International's board chairman, was born in Austria and emigrated to Canada in 1954 with a background in tool and machine engineering. In 1957 he formed a tool and die company that later expanded into making auto components. In 1969, his company merged with Magna Electronics Corp. and became Magna International.Source: MagnaHear J.Ed. Marston talk about Magna International. Comment.
Late last year, Magna almost acquired General Motors' European division Opel before GM chose to retain it.
In 2007, Magna was seen by some industry analysts as the leading contender to buy Chrysler before it was sold to a private equity group.
J.Ed. Marston, the Chattanooga Area Chamber of Commerce's vice president of marketing, said it has been building ties with Ontario, Canada-based Magna for the past seven years. He declined to give specifics about the business group's contacts.
But, Mr. Marston said, Magna Seating's announcement this week is a culmination of the Chamber's work.
Mayor Littlefield termed Magna "a highly flexible manufacturing organization."
"It's a good organization to have in a community," he said. "I'm sure they're looking for the future."
VW's auto assembly plant is slated to start making a new midsize sedan in about a year, employing over 2,000 workers.