Volkswagen Supplier Park Opens

Volkswagen Group of America, Chattanooga Operations unveiled its on-site supplier park on Thursday, September 30, 2010. This automotive facility will provide key components and logistical operations for the New Midsized Sedan (NMS) set to begin production in the first quarter of 2011.

The supplier park consists of two buildings, each 223,200 sq. ft. in size, which is the equivalent of 9 football fields of space combined. The supplier park offers the tenants a facility managed by a single entity to provide economies of scale and convenience.

“The supplier park is a crucial link in our production process,” said Frank Fischer, CEO and Chairman for Volkswagen in Chattanooga. “In this challenging economy, it is a strong statement that our suppliers chose to partner with us here on-site. This facility shows that the future is bright for Volkswagen in Chattanooga and for all of our partners as well,” Fischer said.

Volkswagen also announced that CEVA Logistics will handle the sequencing and logistics arrangements within the Volkswagen Supplier Park. CEVA is one of the world’s leading logistics companies, providing end-to-end design, implementation and operational capabilities in freight forwarding, contract logistics, transportation management and distribution management.

The suppliers, the products they will supply and employment estimates contracted to occupy the supplier park are listed below (alphabetically):

Chattanooga Seating – front and rear seat – 140 jobs

Faurecia  – front and rear exhaust system – 35 jobs

Magna Exteriors & Interiors – front and rear fascia – 25 jobs

MTEK – headliners and door panels – 40 jobs

Thyssen Krupp – front and rear axle; corner module – 90 jobs

Wingard Quality Supply – wheel and tire assembly – 25-30 jobs

CEVA – logistics – 130-140 jobs

Volkswagen in Chattanooga currently employs nearly 1,100 people. The plant will eventually employ more than 2,000 workers and is expected to result in as many as 9,500 indirect jobs to be created over time.

Volkswagen Group of America Inc. will invest $1 billion in the local economy for the Chattanooga plant and create more than 2,000 direct jobs in the region. According to independent studies, the new Volkswagen plant is expected to generate $12 billion in income growth and an additional 9,500 jobs related to the project. The Chattanooga plant will build a new midsize sedan specially designed for the North American market.

Volkswagen selected Gray Construction to build their 1.2 million s.f. automotive supplier park. Gray, ranked 4^th among the U.S. Top Automotive Plant Contractors, provided architecture, civil engineering, structural engineering and construction management services for this project. The supplier park is the only design-build project on the Volkswagen campus. If you have automotive plant construction needs, please contact Chris Allen, Executive Vice President, Automotive Market at callen@gray.com.