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Continental Corp
Autofield Blog

Do the Math: VW in Tennessee


By:

12. June 2013

There are some people who still question the economic relevance of the automobile manufacturing industry to the U.S.

A recent study by the University of Tennessee at Knoxville (UTK) ought to put that to rest.

The researchers looked at the Volkswagen Chattanooga plant, where the Passat is produced. The plant officially opened in May 2011.

VW Chattanooga

The plant directly employs 2,415 people. UTK researchers find that the plant indirectly employs 9,985 others, such as at supplier companies. They also point out that the plant has attracted 17 suppliers to the Chattanooga area.  (Which probably wouldn’t have otherwise been attracted to Chattanooga.)

From a financial perspective, VW pays $159.2-million to its employees. In addition to that, there is indirect employee income of $483.9-million.

It also helps increase state and local tax revenues, on the order of $31.2-million and $22.3-million, respectively.

We hear a lot about the importance of “small business.” Yes, it is important.

So are 5,600,000-square meter assembly plants.

Big businesses.

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