Is VW Chattanooga right or wrong to bypass Georgians?
No production worker from Georgia has benefited from the new VW Chattanooga plant, AJC staffer Dan Chapman is reporting.
What do you think of this?
Volkswagen officials bluntly explain their parochial pattern: Tennessee gave them $577 million in tax breaks and other financial inducements so, naturally, those from that state get the jobs, Chapman writes.
But Georgia and the local officials around West Point did not take the same approach with the Kia plant — even though $469 million in incentives were spent there, Chapman writes. One-fourth of the workers there are from Alabama.
“With all those tax breaks, maybe they should’ve worked harder to keep the jobs in Georgia,” Tim Stennett, an unemployed engine builder from Ranger, told Chapman.
Which side are you one?
Are VW and Tennessee justified in keeping the work for themselves?
Or is it short-sighted to bypass Georgians, given how interconnected local economies are these days — not to mention all the joblessness in north Georgia?
- Henry Unger, The Biz Beat
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130 comments Add your comment
Realist
January 21st, 2011
2:43 pm
Shadow7071 – YES I DO. This story is as old as America. Jefferson, Madison and the Anti-Federalists were all on the right side, while Hamiton, Washington and the Federalists were on the wrong side – basically in favor of taking the horrible Merchantilist system of England and making it the foundation of America. The Federalists became the Whigs who became the Republicans, and Lincoln with his “American System” (really from Henry Clay) exploited the south with oppressive tarriffs to pay for improvments to northern manufacturing and for the railroads. Today’s republicans pay a nice bit of lip service to free markets and liberty so they can get elected, but then turn back to their merchantilist roots once in office.
Illegal
January 21st, 2011
2:43 pm
Isn’t that Illegal? Bold Discrimination, no?
Realist
January 21st, 2011
2:46 pm
Is GA really the loser? What is seen is the intial hirings and claims of huge tax inflows. What is not seen are the true costs. Nobody ever sits down and adds it all up, and truly nobody can. We are just supposed to take government’s word for the fact that the money spent is “worth it.” There is certainly no historical evidence to support any belief in government statistics or claims.
Illegal
January 21st, 2011
2:50 pm
Anti-discrimination law refers to the law on people’s right to be treated equally. Some countries mandate that in employment, in consumer transactions and in political participation people may be dealt with on an equal basis regardless of sex, race, ethnicity, nationality, sexuality and sometimes religion and political views.
Not Surprised
January 21st, 2011
3:04 pm
As a corporation, VW has an arrogant culture towards the US market. VW assembled Rabbits in Pennsylvania in the 1980s that were “dumbed down” for Americans. Looks like they are trying the same formula in Chattanooga. Once the tax breaks are gone, so will the American jobs.
Tom Joad
January 21st, 2011
3:06 pm
This isn’t about choosing sides…it’s about the selling-out of the American middle class.
I don’t need to move to somewhere else, because if this political mindset continues, we’ll eventually turn into a third world country, anyway.
Mr Logic
January 21st, 2011
3:23 pm
Everyone here needs to calm down:
Nice journalism – how about presenting facts in a different light:
1. IF Tennessee spent that kind of money to lure a company in for manufacturing jobs to benefit their State – then that is where the jobs should go. I have no problem with this.
2. We are talking about 2000 jobs total at the ASSEMBLY plant. VW is only concerned about the ASSEMBLY plant.
3. There will be an additional 8000 plus jobs generated at the SUPPLIER Park that is being built in the same complex. Folks from Georgia can get those jobs.
Again – let’s present the big picture – not just a slice to create a story.
Pete
January 21st, 2011
3:44 pm
Hiring bias for one state or other political jurisdiction seems shortsighted and ultimately counterproductive. First, it’s not as though there are hordes of unqualified Georgians waiting at the border to overpower the Tennesseans for these jobs. VW should go for the best employees, wherever they may come from.
Captain Boycott
January 21st, 2011
3:47 pm
Globalization? Protectionism? An international firm goes to the extreme! Simple question for those who see no problem in a Tennessean-only workforce: “Would you object to a policy that excludes any Tennessee individual or firm from working or trading in Georgia?” Screw VW and boycott their dealerships in this state until an enlightened policy and practice is implemented.
Novw4me
January 21st, 2011
4:18 pm
Let’s be clear about one thing. Tennessee is not the brilliant manafacturing magnet that everyone thinks they are. Tennessee did not do this without Georgia money..In Fact, money from every citizen in the US. The land VW is built on was given to Chattanooga by the federal Government making this my money. The road money to add entrance off I-75 is Federal money.regardless this will keep me from every considering a VW vehilce. But, I think a Congressional hearing is in order.
Suzanne
January 21st, 2011
4:55 pm
Get over it, folks. Spelling errors, name calling, protests…..how about being thankful for JOBS….regardless where…..there’s something to be thankful for in everything. Why don’t some of you try that approach for a change?
Tim
January 21st, 2011
9:08 pm
The Georgia economy dwarfs Tennessee’s- and Greater Atlanta’s economy is nearly TEN TIMES the size of Chattanooga’s. Chattanooga, until very recently, had the lowest long term growth rate of any Metro in the Southeast, and is just now growing again- and Georgians are complaining!? Get used to it! If you want a job, move to Chattanooga. Its not a stretch.
VWnever
January 22nd, 2011
6:39 am
I think this is illegal. The US Constitution gives the federal government the powers to regulate commerce between states. How can a state and local government conspire with private company to restrict the free flow of labor across state lines? I smell a nasty class action law suit brewing and VW and Chattanooga will get as much bad publicity as they have gotten good publicity because of this. And, besides who in the world wants to may good hard earned Georgia money for a Passat? or whatever it is. No Passat or VW for me! EVER!
HTH
January 22nd, 2011
7:09 am
See whats wrong here is I think we need a little positive thinking. Now building that rail line from here to Tennessee. Light high speed rail. Would provide a lot of jobs and revenue. It would be our first high speed train. Don’t you know everyone would ride that. Think about it 1/2 hour maybe 20 minutes to Tennessee. They could shop here. We could go and visit. We could start it right at Lenox square and go through North Atlanta. I think we have a Federal grant or something like that.
Music610
January 22nd, 2011
7:37 am
You idiots. With American factories closing or moving offshore, VW builds a $1 Billion plant on U.S. soil, and you argue over WHERE in America it’s built and which AMERICAN gets hired! (Another reason to abolish the Dept. of Education!)
TnGelding
January 22nd, 2011
7:44 am
Was it spelled out in the contract? I doubt it. It sounds to me like VW made the decision. I think it’s short-sighted, but the states have been playing cut-throat for years. You hire the most qualified candidates that you think will make the best employees and represent the company well.
Charles
January 22nd, 2011
10:25 am
The State of Georgia was too interested in touting housing construction all those years instead of manufacturing as a means of creating jobs. What the State was guilty of was the fact they put all their eggs in that basket, and now, with NO housing construction going on, they hung themselves by it!
Interesting Observation
January 22nd, 2011
11:54 am
For decades heavy industry and big business were located in the the rust belt and the northeast while the south was avoided because the south refused to drive a stake throw Jim Crow’s heart. Jim Crow is dead, and now the only way the south can compete is through bribes aka sweetheart tax deals. You gotta love it. Whenever corporations find a better bribe they will uproot and move on leaving in their paths landcsapes of shutterd shops and warehouses. The next time you take MARTA to the airport take in the magnificent view of the swath(south of I-20) of boarded up, shuttered, crumbling remnants of what was once thriving factories and businesses replaced by a fast-food joint here or there and Asian/Arab/Ethiopian/Pakastani owned hair shops, nail salons, convenience stores and liquor stores.Those once thriving shops and factories provided economic opportunities to people whose grand children who are now smashing and grabbing.
traveler
January 22nd, 2011
1:16 pm
Born & raised in Chattanooga, now live in GA. I say TN taxpayers are due to reclaim their investment. GA & other state politicians could learn from this and do more for their OWN taxpayers instead of obsessive school taxes, adv.taxes on vehicles, etc. Wake up GA regulators!!
GA Dawgs #1
January 22nd, 2011
2:50 pm
We Georgians have been wronged by the German Fascists and the hillbillies!!!
We should fight this wronging!!!!
stockguy
January 22nd, 2011
8:29 pm
great stock tips at http://www.hotstockbuys.blogspot.com
timbo
January 23rd, 2011
11:49 am
VW would not buy our politicians like the insurance lobby did. No under the table money for the tax breaks. The last eight ears the people of Georgia were sold out to anybody with some under the table cash.
Shadow7071
January 23rd, 2011
11:59 am
This is all very sad. Here you have Chattanooga paying millions of dollars for jobs. Think about it… each of the forecasted 2,500 jobs will cost Tennessee tax payers around $250,000! OMG! $250,000 for a production assembly/fabrication job. Rural communities sometimes pay (in bonus) that much to get a doctor to come and practice in their community. Chattanooga is a small city. It has a crime problem, and unemployment problem and a wage problem. Wages in Chattanooga are about 20-25% lower than the rest of the U.S. So they stick their neck out to woo VW, win the bid and now they’re probably at major financial risk because VW has made them cough up the money and financing for this project. And, to make matters worse the vendor/supplier infrastructure has not developed as rapidly as anticipated. VW continues to bring in parts and sub-assemblies from outside of U.S. Now Chattanooga will have the Feds looking into this project and they’ve probably hurt their relations with NW Georgia communities. What started out as a juicy economic development project is rapidly turning into an economic boondoggle.
FICKEN
January 23rd, 2011
1:42 pm
As a Atlantan, who lived on Lookout Mountain (Tennessee), I think they’re not wrong, but they’re certainly not right either…
Jeremy
January 23rd, 2011
5:03 pm
You guys do realize that VW will be helping N Georgia regardless if they hire Georgians. Think about how many positions at other companies will be vacant once production starts and workers shift to VW
Paul Lazar
January 23rd, 2011
8:56 pm
VW should hire the most qualified applicants. Their stance of “naturally” limiting the pool to TN applicants (due to tax concessions) is offensive and will certainly keep me from entering a VW dealership in the future (and I was considering a TDI). Bad PR move VW.
booger
January 23rd, 2011
9:21 pm
as the vw people say, we didn’t show them the love we showed kia. and i would never buy a vw anyway, no matter how cute the ads are.
BoyWonder
January 24th, 2011
12:00 am
Funny how Henry the Bobblehead nor any of these idiots said a darned thing when Georgia BOUGHT with our tax dollars) the headquarters and manufacturing of NCR Corp, by STEALING it from Ohio.
You people are morons.
The inter-state tax break competition and corporate welfare gimmicks should be outlawed – period.
But I’m (not) surpised I don’t see any of you Republicons and Tea Baggers clamoring to picket the gold dome, railing against government interference or takeovers of the private economy.
But that is exactly wehat you are wtinessing here.
Hypocrites.
This kind of
Michael
January 25th, 2011
8:19 am
Keep complaining as you send your money to Berlin, Tokyo and Seoul.
NotImpressed
January 26th, 2011
2:25 pm
Why don’t you idiots just show VW how mad you are and refuse to buy VW cars. Great idea to lower profits for VW dealerships here in Georgia so that they have to lay off employees. You guys are near the bottom in education, right?