Volkswagen Chattanooga Assembly Plant
Encyclopedia
Volkswagen Chattanooga Assembly Plant (or Chattanooga Operations LLC) is an automobile assembly plant in Chattanooga
, Tennessee
that began production in April 2011, was formally inaugurated in May 2011 and is expected to employ approximately 2,000 once fully operational. The plant has a projected annual production of 150,000 cars beginning with a version of the 2012 Passat, tailored to the US market.
The local plant, building a localized product, will allow the manufacturer to avoid exchange rate fluctuations and closely monitor US automotive market trends,
while reducing vulnerability to extended supply chains. Chattanooga Assembly will manufacture 85% of the Passat's content, an unusually high percentage and about 85% of the content of the North American Passat will come from North American Free Trade Agreement
countries. The company has preliminary plans for a second phase that would increase capacity to 592,000 vehicles a year. Labor costs at the Tennessee plant, including wages and benefits, have been estimated to average $27 an hour, below those of Ford, GM, Chrysler and other foreign automakers.
The Chattanooga plant opened 23 years after the closing of the Westmoreland Assembly Plant
near New Stanton, Pennsylvania
in 1988. The plant, which operated from 1978–88, had been characterized by labor unrest and suffered from poor networking between Westmoreland and Volkswagen headquarters in Germany.
.
The industrial park comprises land that was once an ammunition plant known as the Volunteer Army Ammunitions Plant (VAAP), which manufactured up to 30000000 pounds (13,607.8 t) of TNT (trinitrotoluene) per month for World War II
, the Korean War
and the Vietnam War
. The Volkswagen facility is near a remaining storage bunker, once used to store TNT. The site will eventually feature nearby hiking, biking and walking trails, picnic areas, and overlooks.
The plant has the flexibility to build any of the company's front-engine/front-wheel-drive vehicles in A, B or C-segments. The paint shop is sized to handle a wide range of vehicle sizes. The plant is not designed to manufacture a large vehicle. The factory includes 383 robots in the body shop, which is approximately 77 percent automated. There are 4,730 weld spots and 292 welding guns. Output will be about 31 cars per hour. The plant is organized with its major process areas – body shop, main assembly and paint shop – in a stacked configuration with major checkpoints arranged in a concentric-circle layout – to eliminate long walks between factory areas, to investigate a problem, for example.
VW announced it would seek Leadership in Energy and Environmental Design (LEED)
certification for the complex The project is not registered for LEED certification, the first step in the certification process, and has been no announcement about the project's current certification status. Instead, VW describes the project as "LEED-aggressive" or "heavily aligned with LEED standards." LEED certification is "a complex and lengthy certification process" and "the plant likely will achieve the goal in stages." According to the company, the factory uses methods including LED lighting and recycled rainwater for an overall energy usage 35 percent less than a standard automotive plant.
Chattanooga Assembly was designed by the Nashville engineering and architecture firm SSOE
, the firm Environmental Resources Management (ERM) for the environmental permitting process and Alberici Constructors, Inc. for the construction management of the facility. The Port of Savannah, Georgia's
Garden City Terminal will handle imported auto parts in containers for its new plant.
Chattanooga, Tennessee
Chattanooga is the fourth-largest city in the US state of Tennessee , with a population of 169,887. It is the seat of Hamilton County...
, Tennessee
Tennessee
Tennessee is a U.S. state located in the Southeastern United States. It has a population of 6,346,105, making it the nation's 17th-largest state by population, and covers , making it the 36th-largest by total land area...
that began production in April 2011, was formally inaugurated in May 2011 and is expected to employ approximately 2,000 once fully operational. The plant has a projected annual production of 150,000 cars beginning with a version of the 2012 Passat, tailored to the US market.
The local plant, building a localized product, will allow the manufacturer to avoid exchange rate fluctuations and closely monitor US automotive market trends,
while reducing vulnerability to extended supply chains. Chattanooga Assembly will manufacture 85% of the Passat's content, an unusually high percentage and about 85% of the content of the North American Passat will come from North American Free Trade Agreement
North American Free Trade Agreement
The North American Free Trade Agreement or NAFTA is an agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. It superseded the Canada – United States Free Trade Agreement...
countries. The company has preliminary plans for a second phase that would increase capacity to 592,000 vehicles a year. Labor costs at the Tennessee plant, including wages and benefits, have been estimated to average $27 an hour, below those of Ford, GM, Chrysler and other foreign automakers.
The Chattanooga plant opened 23 years after the closing of the Westmoreland Assembly Plant
Volkswagen Westmoreland Assembly Plant
The Volkswagen Westmoreland Assembly Plant is a manufacturing plant formerly operated by Volkswagen of America , south of Pittsburgh in Westmoreland County, Pennsylvania near New Stanton. The complex manufactured 1.15 million vehicles from 1978 to 1988...
near New Stanton, Pennsylvania
New Stanton, Pennsylvania
New Stanton is a borough in Westmoreland County, Pennsylvania, United States. The population was 1,906 at the 2000 census. New Stanton is often used as a control city in western parts of Pennsylvania, as I-70 joins the Pennsylvania Turnpike eastbound towards Breezewood, Pennsylvania in New...
in 1988. The plant, which operated from 1978–88, had been characterized by labor unrest and suffered from poor networking between Westmoreland and Volkswagen headquarters in Germany.
Site
The entire facility includes approximately 1900000 square feet (176,515.8 m²), and is constructed on a 1400 acres (6 km²) parcel of the 6000 acres (24.3 km²) Enterprise South Industrial ParkEnterprise South Industrial Park
The Enterprise South Industrial Park, located in Chattanooga, Tennessee consists of . A large portion of this property is now home to Volkswagen's new United States automobile plant.- History :...
.
The industrial park comprises land that was once an ammunition plant known as the Volunteer Army Ammunitions Plant (VAAP), which manufactured up to 30000000 pounds (13,607.8 t) of TNT (trinitrotoluene) per month for World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, the Korean War
Korean War
The Korean War was a conventional war between South Korea, supported by the United Nations, and North Korea, supported by the People's Republic of China , with military material aid from the Soviet Union...
and the Vietnam War
Vietnam War
The Vietnam War was a Cold War-era military conflict that occurred in Vietnam, Laos, and Cambodia from 1 November 1955 to the fall of Saigon on 30 April 1975. This war followed the First Indochina War and was fought between North Vietnam, supported by its communist allies, and the government of...
. The Volkswagen facility is near a remaining storage bunker, once used to store TNT. The site will eventually feature nearby hiking, biking and walking trails, picnic areas, and overlooks.
Design
Chattanooga Assembly includes a body shop, paint shop, assembly facility, a Market Delivery Options (MDO) building, technical testing center, employee training facility with classrooms, an apprentice-training school and a full-size practice paint booth, a supplier park for eight companies and a 32000 square feet (2,972.9 m²) healthcare with gym, childcare facilities and medical servicesThe plant has the flexibility to build any of the company's front-engine/front-wheel-drive vehicles in A, B or C-segments. The paint shop is sized to handle a wide range of vehicle sizes. The plant is not designed to manufacture a large vehicle. The factory includes 383 robots in the body shop, which is approximately 77 percent automated. There are 4,730 weld spots and 292 welding guns. Output will be about 31 cars per hour. The plant is organized with its major process areas – body shop, main assembly and paint shop – in a stacked configuration with major checkpoints arranged in a concentric-circle layout – to eliminate long walks between factory areas, to investigate a problem, for example.
VW announced it would seek Leadership in Energy and Environmental Design (LEED)
Leadership in Energy and Environmental Design
Leadership in Energy and Environmental Design consists of a suite of rating systems for the design, construction and operation of high performance green buildings, homes and neighborhoods....
certification for the complex The project is not registered for LEED certification, the first step in the certification process, and has been no announcement about the project's current certification status. Instead, VW describes the project as "LEED-aggressive" or "heavily aligned with LEED standards." LEED certification is "a complex and lengthy certification process" and "the plant likely will achieve the goal in stages." According to the company, the factory uses methods including LED lighting and recycled rainwater for an overall energy usage 35 percent less than a standard automotive plant.
Chattanooga Assembly was designed by the Nashville engineering and architecture firm SSOE
SSOE
SSOE Group is a privately held international architecture, engineering, and construction management firm – ranked 14th nationally —that provides comprehensive services to diverse clients. SSOE has also been named one of the "Best AEC Firms to Work For" and as one of the fastest-growing firms by Inc...
, the firm Environmental Resources Management (ERM) for the environmental permitting process and Alberici Constructors, Inc. for the construction management of the facility. The Port of Savannah, Georgia's
Port of Savannah
The Port of Savannah is a major U.S. seaport located at Savannah, Georgia. Its extensive facilities for oceangoing vessels line both sides of the Savannah River approximately from the Atlantic Ocean...
Garden City Terminal will handle imported auto parts in containers for its new plant.
Cost and incentives
Volkswagen invested approximately one billion U.S. dollars to construct the facility, with local, state and federal governments subsidizing the project with an estimated $577 million in incentives. Alabama had offered Volkswagen incentives of $385 million, the most the state had ever offered for an auto project. Mississippi offered incentives totaling $294 million to Toyota in 2007 for an assembly plant at Blue Springs. Kia received about $324 million in incentives from Georgia. Volkswagen had researched 398 possible sites before narrowing the choice to the states of Michigan, Alabama and Tennessee.Overview timeline
- 1988: Volkswagen closes its Westmoreland Assembly PlantVolkswagen Westmoreland Assembly PlantThe Volkswagen Westmoreland Assembly Plant is a manufacturing plant formerly operated by Volkswagen of America , south of Pittsburgh in Westmoreland County, Pennsylvania near New Stanton. The complex manufactured 1.15 million vehicles from 1978 to 1988...
- 2006: Construction complete, Interstate 75Interstate 75Interstate 75 is a major north–south Interstate Highway in the Great Lakes and Southeastern regions of the United States. It travels from State Road 826 and State Road 924 in Hialeah, Florida to Sault Ste. Marie, Michigan, at the Ontario, Canada, border...
interchange near Ooltewah, TennesseeOoltewah, TennesseeOoltewah is a census-designated place in Hamilton County, Tennessee, United States. The population was 687 at the 2010 census. It is part of the Chattanooga, TN–GA Metropolitan Statistical Area.- History :...
. - July 2008: Volkswagen announces intention to build Chattanooga Assembly.
- Fall 2008: Preliminary construction begins.
- January 2009 January Groundbreaking re-scheduled indefinitely.
- May 2009 Ceremonial "Wall-Raising" (vs. groundbreaking).
- October 2010: CSX and Norfolk Southern Railway announced they would again serve the site following the completion of a $6.6 million project to provide dual rail service to the Volkswagen Assembly Plant.http://www.chattanoogan.com/articles/article_186301.asp The newly-completed yard was dedicated on April 6, 2011. Work included "the biggest rail overhaul in and around the Volunteer Army Ammunition Plant since the tracks were laid during World War II."http://www.timesfreepress.com/news/2011/apr/07/vw-dedicates-rail-yard/
- April 2011: First Passat rolls off the assembly line.
- April, 2011: completion of the site's $7.5 million 850-foot span steel-and-glass pedestrian bridge and guardhouse.
- May 24, 2011: The plant was inaugurated on May 24, 2011 by Martin WinterkornMartin WinterkornMartin Winterkorn is the Chairman of the Board of Management of Volkswagen AG, the parent company of the Volkswagen Group, and Chairman of the Supervisory Board of Audi and Porsche Automobil Holding SE....
, Chairman of the Board of Management of Volkswagen Aktiengesellschaft and the U.S. Secretary of Transportation Ray LaHoodRay LaHoodRaymond H. "Ray" LaHood is a Republican politician from Illinois who is currently the United States Secretary of Transportation, having served since 2009. Previously, he represented the Illinois's 18th congressional district in the U.S. House of Representatives for seven terms .-Early life and...
with Klaus SchariothKlaus SchariothDr. Klaus Scharioth is a German diplomat. From 2006 to 2011 he served as Germany's ambassador to the United States.Scharioth was born in Essen, located in the Ruhr Area in western Germany. He studied law in Bonn, Freiburg and Geneva and political science, sociology and psychology at The College of...
, German Ambassador to the United States, Bill HaslamBill HaslamWilliam Edward "Bill" Haslam is the 49th and current Governor of Tennessee. A member of the Republican Party, Haslam was elected to office in 2010...
, Governor of the U.S. State of Tennessee, Jonathan BrowningJonathan BrowningJonathan Browning was an American inventor and gunmaker. Born in Sumner County, Tennessee, he started earning a living as a blacksmith and later switched to become a lock and gunsmith. He invented a 'sliding breech' repeating rifle also called a Harmonica gun between 1834 and 1842 while living...
, President and CEO of Volkswagen Group of America, as well as U.S. Senators Robert Corker and Lamar AlexanderLamar AlexanderAndrew Lamar Alexander is the senior United States Senator from Tennessee and Conference Chair of the Republican Party. He was previously the 45th Governor of Tennessee from 1979 to 1987, United States Secretary of Education from 1991 to 1993 under President George H. W...
in attendance. The actor Max PageMax Page (actor)Max Page plays Reed Hellstrom on the American TV soap opera The Young and the Restless. At age six, he appeared in his first national commercial, a spot for Volkswagen which aired during The 2011 Super Bowl, in which he appeared as a boy in a Darth Vader costume.-Acting career:Max has appeared in...
, who played a small version of Darth VaderDarth VaderDarth Vader is a central character in the Star Wars saga, appearing as one of the main antagonists in the original trilogy and as the main protagonist in the prequel trilogy....
in a 2011 Volkswagen television commercial, also attended in costume. - September 8, 2011: The plant manufactured its 10,000th car, a white Passat TDI. The number included pre-series cars, technical training cars, dealer experience cars as well as customer cars.