Volkswagen unveils new car, stoking job hopes in N. Georgia

“Volkswagen is writing a new chapter in our American story,” said Jonathan Browning, CEO and president of Volkswagen of North America. “We aim to become a leading player in the U.S. market, and achieving that goal is central to Volkswagen’s global plans.”

Georgia competed against Tennessee and other states for the $1 billion car plant. In early 2008, once Georgia learned it was out of the VW race, state officials backed the Chattanooga site, expecting jobs and auto part factories to trickle as far southward as Atlanta.

Volkswagen expects to build 150,000 Passats annually, with enough production capacity for an additional100,000 vehicles. Roughly 1,200 workers have been hired to manufacture the cars at the plant. In all, according to a study done by the University of Tennessee, more than 11,000 VW, supplier and spinoff jobs should be created.

Catherine Edgemon, the economic development director for the North Georgia city of LaFayette, recalled recently the “euphoria and elation” when VW selected Chattanooga in mid-2008.

“We had attracted a world-class automotive plant to this region, and the expectation was that all of our communities, either directly or indirectly, would benefit from that industry’s location here,” she said.

Walker County, with LaFayette as its biggest town, could use the jobs. Unemployment remained a stubborn 10.4 percent in November, a touch higher than in metro Atlanta.

VW will build three different Passats, including a diesel-engine version capable of up to 43 miles per gallon. Longer than the original Passat, VW hopes to compete with the Honda Accord and the Toyota Camry.