Volkswagen announces first five tenents at onsite supplier park, two tenents to follow
CHATTANOOGA, Tenn. — At least 500 new jobs will be created at Volkswagen’s onsite supplier park scheduled to open this summer. Volkswagen announced this month that its first five tenants will include: Chattanooga Seating; Magna Exteriors & Interiors; Mtek; and Thyssen Krupp. The suppliers will furnish Volkswagen with components for the mid-size sedan that will be produced at the Chattanooga assembly plant.
Already under construction, Volkswagen officials expect the supplier park to be completed and ready for occupation on schedule. Two more suppliers will soon announce their agreement with Volkswagen to locate in the supplier park. All seven suppliers have said they intend to hire from the local community for the 500 positions that will need to be filled.
The onsite supplier park will allow Volkswagen to build automobiles that meet the company’s quality standards, while saving money on shipping costs and maintaining a high level of safety.
Volkswagen’s plant will employ over 2,000 and should be ready for production to begin next spring.
Developed by Volkswagen with a $21 million loan from Bank of America, the supplier park will consist of two 223,000-square-foot buildings.
It has not yet been announced by any ot the suppliers what they will offer for starting pay to workers. All have stated that wages will be “competitive” with current local wages. While Volkswagen’s starting pay is $14.50 for production workers rising to $19.50 per hour over 36 months, it is not expected suppliers will start their workers at such a high wage. It is thought that wage rate will be in the $9.00 to $10.00 per hour range, which is in line with what other suppliers to the automotive industry currently pay.
Volkswagen now employs 650 in the Chattanooga plant, where work on a prototype is underway.
Delta adds two flights
The impact of Volkswagen’s entrance into the Chattanooga area is also being felt by the addition of two daily non-stop flights from Detroit to Chattanooga. Delta Airlines will offer service from its Detroit World Gateway to Chattanooga beginning Sept. 7, 2010. Flights will leave Detroit at 8:35 a.m. and arrive in Chattanooga at 10:05 a.m. Another flight will leave Chattanooga at 9:55 a.m. and arrive in Detroit at 11:25 a.m.
The new service will be operated by Delta Connection using a 50-seat regional jet aircraft.
Customers and travel agencies can begin booking flights between the two cities on May 8, 2010 by calling Delta Air Lines.
