• Jul 7, 2008

Volkswagen's management will meet tomorrow to refine plans to expand automobile production into the United States. While a final recommendation isn't expected until July 15, Alabama appears to be the front runner (over second-choice Tennessee) to receive the $788 million plant that will initially build the Volkswagen Jetta sedan and an all-new Passat-sized sedan. VW is also rumored to be considering production of a long-wheelbase version of the Volkswagen Tiguan and the Audi's Q5 on our shores. Volkswagen isn't the only German automaker to announce manufacturing expansion in the United States this year. The falling value of the dollar has also encouraged BMW to increase U.S. production in Spartanburg, South Carolina.

[Source: Automotive News, subs. req'd]



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  • 30 Comments
      • 6 Years Ago
      The South will rise again............ take note northeastern states, you will continue to lose population with your ever increasing appetite for taxation. As a upstate Nyer, I can assure you not one manufacturing business is looking to build anywhere near this area. As a matter of fact just last week another paper mill closed its doors.
      • 6 Years Ago
      I hope that finally the Polo will be build and sale in the US. This will be a nice choice against the number of Mini and Echo sold here.

      I noticed That Mercedes has a big plan in Vance, AL near Tuscaloosa. I wonder what type of vehicules (car, truck, bus) they are building out there.
        • 6 Years Ago
        they build the M, R, and GL at the plant in Vance. I've known several folks out there, mostly on the engineering staff.
        • 6 Years Ago
        That reply was to Parkerman above responding to my comment... Silly broken commenting system on Autoblog...
      • 6 Years Ago
      Autoblog Not to be rude... but cool it with the VW posts... as i said before all modern VW's are girl car's no one care's about them... unless ur a girl. lol...
        • 6 Years Ago
        What a stupid comment.... and if you want to play that way, Corvettes are nothing but Redneck cars.
      • 6 Years Ago
      Good move. Alabama will be cheap for land and the UAW is unlikely to gain a foothold in the plant, keeping labor costs down.
      • 6 Years Ago
      This will be great news for Alabama as well as Tennessee, as it will no doubt get some of the spinoff plants, should VW does indeed to set up shop here. Sorry, Michigan, better luck next time.
      • 6 Years Ago
      Alabama Automotive industry continues to grow. Direct jobs have increased to 48,457 (+8%) up from 44,834 in 2005. The number of plants increased to 285 up from 263 in 2005. Since the first AAMA study was conducted in 2001, Alabama's auto industry has added 21,545 jobs, an 80 percent increase!

      Wow, what other state can claim anything similar in any manufacturing field?
      • 6 Years Ago
      Good for 'bama!

      Screw the UAW - thanks for helping destroy every American company you extort, errr, touch.
      • 6 Years Ago
      ATOMICBRI..where and how did u get the great icon??
      • 6 Years Ago
      Thanks for the encouragement, Pacman. Alabama's Economic Development Agency really puts its energy into attracting new industry in the state. Plus we have governors who make good on their promises to bring automotive and aeronautical jobs to the state if they are elected. If we're lucky, maybe this can beat out college football as the state's number one cash crop.
        • 6 Years Ago
        Hah, Highly doubtful on the football part.. =P lol.

      • 6 Years Ago
      "What is Alabama doing so right?"

      It is offering incentives, which have not been disclosed but could be more than $200 million, to lure the German automaker, and its 2,000 jobs.

      State Finance Director Jim Main favors paying for them with a one-time withdrawal from the Alabama Trust Fund

      Pulling out that money would require statewide approval of an amendment to the constitution.

      So in the end, who really pays? The Taxpayer, and before you start, I've done economic development in our town for 15 years, so I'm not against it, but you need to look at it very hard. PA never was fully paid back and neither was Flint by GM.

        • 6 Years Ago
        What Rich Warren said. Alabama is practically paying the companies for locating here and forbidding the automakers to be taxed much (if at all). It would be great if our state could attract that business without foregoing the infusion of real state tax income that it desperately needs.

        I just heard a news report that spun Alabama's lowest in the nation income taxes as a good thing, considering the rise in gas and groceries. Of course, the same news station was reporting a few weeks prior on budget cuts for the local county school system and at Alabama, Auburn, and UAB universities. We Alabamians are a backward bunch sometimes.

      • 6 Years Ago
      Another enticement for VW for Alabama would be probably be German conglomerate Thyssen Krupps which supplies automotive steel...and also happens to be opening a factory there.
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