Volkswagen mulls South for next auto plant - WMC Action News 5 - Memphis, Tennessee

Volkswagen mulls South for next auto plant

CHATTANOOGA, Tenn. (AP) - If Volkswagen AG decides to build its U.S. assembly plant in the South, the German company will join other foreign automakers that are increasingly turning the region into a hotbed of car manufacturing.

The South offers automakers ample highway and rail systems and proximity to the large market of U.S. consumers. But its main attraction is that existing auto plant workers have rejected overtures by the United Auto Workers.

Volkswagen's plant will be part of the company's strategy to increase its presence in the U.S., where the maker of the Jetta, Golf and Beetle holds just 2 percent of the market.

VW executives have narrowed their site options to Alabama, Tennessee and Michigan. All three states are offering financial incentive packages. The automaker's representatives and economic development officials won't discuss the site search. 

A Tuesday meeting of the company's management board in Frankfurt, Germany yielded no decision on where to build.


(Copyright 2008 by The Associated Press.  All Rights Reserved.)

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