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
buzz
January 21st, 2011
5:46 am
Chattanooga has a much larger population than West Point, so I can see why workers at the Kia plant would come from outside that city.
Chattanooga has 170,000 people, it is the 4th largest city in Tennessee. A city that large should have enough people and business to support an auto plant, unlike West Point, population 3,000.
Karl Marx
January 21st, 2011
6:35 am
After reading the initial story I can tell you I will bypass a VW dealership when looking for my next car.
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January 21st, 2011
6:37 am
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Edward
January 21st, 2011
6:49 am
So another “Sonny Purdue” lie… what else is new… Maybe they should have put the plant in Oaky Woods…..
Tim Slim
January 21st, 2011
6:50 am
Rocky Top vs. UGA another win for Tennessee. Get over it. Cut your State tax and maybe Tennessee will give you some crumbs.
Charles
January 21st, 2011
7:11 am
Kia should have gave all of their jobs to GEORGIANS!
Cletus
January 21st, 2011
7:13 am
The paper runs this story and then another one about GA graduates not being able to pass basic math classes. Why would you hire employees that can’t even do simple math or (from this story) speak in coherent and complete sentences?
“They should think about us that’s struggling”…perhaps you should attend some English classes and see how that works out for you.
Betty
January 21st, 2011
7:26 am
Wondering, would VW have a problem cashing my check for a new Passat, especially since the check would be from a bank in GEORGIA. Not a real problem for me….as long as I only have to pay Georgia Sales Tax!
karl marx's dad
January 21st, 2011
7:30 am
“After reading the initial story I can tell you I will bypass a VW dealership when looking for my next car.”
- Karl – if you had a brain – you would be mad at Kia – Not VW – that could be the dumbest statement i have heard this year
Browncoat
January 21st, 2011
7:35 am
If you dont like what VW is doing, vote with your pocketbook. DON’T buy a VW.
Drifter
January 21st, 2011
7:36 am
VW should do what’s best for VW and it’s customers – hire the best workers and use the best suppliers. I can believe that some of them would not be from Georgia.
NotImpressed
January 21st, 2011
7:38 am
Why in the world would anyone think a company in another state is obligated to hire Georgia workers? If Georgia wanted the job opportunities bad enough the state should have done more to attract the business here.
Lee Iacocca
January 21st, 2011
7:44 am
If the VW is made in Tennessee it’s still a foreign car! Amazing.
Drifter
January 21st, 2011
7:50 am
They’re certainly not obligated, but it sounds like they’ve excluded Georgians as a policy. Maybe it was a condition of Tennessee’s bribery (or “tax breaks”).
freemarket
January 21st, 2011
7:52 am
It’s just not fair. Nothing wrong with hiring in the state that gave them the tax breaks to build there. GA should have won the site if they expected any benefits from it.
Danny G
January 21st, 2011
7:53 am
Probably part of the deal cut with VW and the State of Tenn, along with millions of dollars in tax cuts for VW. Typical business deals done by State Government. Don’t you wish you could go to the State and say, hey, I make x amount of dollars and I will live in your state if you charge me lower taxes.
Shadow7071
January 21st, 2011
7:54 am
Some of the incentives given to VW were Federal training dollars earmarked for the Region. From what I read VW was envisioned as a regional economic engine that would benefit Tn, Ga and Al but Chattanooga has grabbed (or trying to grab) all of the gold.
Buzz @5:46 To prospective businesses Chattanooga chamber promotes the availability of a regional workforce to draw upon.
Ron
January 21st, 2011
7:58 am
We’re a small engineering firm and were told by Chamber officials that we were not welcome because we were outsiders. Didn’t live in Chattanooga.
mike
January 21st, 2011
7:59 am
I don’t see what the problem is. It’s obvious those Georgia officials who courted that company failed. Maybe they should have spent more time trying to bring jobs here and less time playing partisan politics.
Cayce
January 21st, 2011
8:06 am
I grew up in Ringgold, a stone’s throw from the TN border and 15 minutes from downtown Chattanooga. It’s closer than most people in the Atlanta area are to this downtown. The reason people from GA expected to be hired is because the entire region encompasses the economic engine that is Chattanooga, not just the TN portion. Northwest GA & Northeast AL comprise some of the largest suburbs in the area, contributing greatly to the tax base that lured VW to the area. TN has no state income tax, and they have a very high sales tax that the whole region pays, because most of the shopping and services are in TN.
Perhaps Dalton, an area hard hit by the recession, should lay off all of the workers they have with TN addresses. That should free up several thousand jobs for North Georgians.
VW sucks
January 21st, 2011
8:07 am
Lousy car anyway, no matter who builds it, but yet another reason to bypass that horribly made auto…..
Blackland
January 21st, 2011
8:13 am
If you live in Georgia, are unemployed and live near Chattanooga simply move to TN and get the job with VW. Problem solved, you get a job and we get the unemployed out of Georgia.
VW Rules
January 21st, 2011
8:14 am
Great car. Great carmaker. They owe GA and its workers nothing. Zero. And, BTW, I bought a VW last year. Best car I’ve ever owned!
Drifter
January 21st, 2011
8:15 am
The problem is simple. It’s obvious they’ve cut some kind of deal with the Tennessee government, which means the government is now part of the decision making process of the company.If VW finds a better supplier in Georgia, they can’t use them…sounds a little too much like the mob-controlled construction business in New York City. Is it OK just because the Tennessee government is the mob in this case?
Tow Truck Driver
January 21st, 2011
8:20 am
I love VW’s, lol
editor
January 21st, 2011
8:23 am
Tennessee is spelled incorrectly!
Browncoat
January 21st, 2011
8:24 am
Look, VW was founded by Hitler and the Nazi’s, what should we expect?
TN sounds good to me.
January 21st, 2011
8:27 am
First GA wanted the Tennessee River, now it’s claiming rights to jobs located within TN..what’s next? Dollywood?
Vdawg
January 21st, 2011
8:28 am
Tennessee has no State income tax but rather an elevated sales tax that is boosted by north Georgians that OFTEN shop and dine in Chattanooga. TN residents have ALWAYS benefited from jobs in Northwest Georgia carpet mills and they get here on the highways that OUR income taxes pay for…..NOT theirs. This action will ensure I will drive an extra 15 minutes to Kennesaw now and you bet your last dollar I won’t get there in a Volkswagen.
hdhd
January 21st, 2011
8:34 am
“No worker or supplier from Georgia has benefited from the new VW Chattanooga plant…”
Why should they? Has GA done anything to entice VW to hire Georgians?
Tax breaks to corporations never creates jobs…..right? Tennessee gets it. Wake up.
(But really, VWs suck, don’t waste your money.)
oldtime
January 21st, 2011
8:34 am
But, North GA got the Costco!!!
Actually ... KIA sucks
January 21st, 2011
8:39 am
Lousy car period, no matter if it is made by mostly GA workers. They could give me a lifetime warranty and MANY would never purchase that auto.
Road Scholar
January 21st, 2011
8:45 am
With all the whininng above, posters forget this is alledgedly a red state based on free trade and no regulations! VW is a public company who can do whatever they please. You forgot your mantra? Oh, it doesn’t apply when it affects you?
OoltewahBoy
January 21st, 2011
8:47 am
Henry,
You neglected to mention in your summary that TN stated there is no requirement in the deal that VW only hire TN people. Then you went on to ask if VW AND TN are justified. You intentionally left out facts of the story so you could make it sound like TN was making VW hire only TN people. Since that’s the case, VW has every right to choose who they hire. They could choose to only hire people from Hamilton County if they wished. Even if VW did hire some Georgians it would not solve unemployment in North Georgia. This isn’t about whether TN or VW is being fair. It’s about the state of Georgia failing it’s people.
Obama Zombie
January 21st, 2011
8:49 am
Yep, Carl Marxx (above) is a true commie-Tenn put up the money and Carl wants to get part of it for GA just like his president,LOL. Yes, i do live in Ga!
joe
January 21st, 2011
8:52 am
TN beats GA again…59-57 in hoops and 1-0 in landing VW’s plants.
Browncoat
January 21st, 2011
8:52 am
Road Scholar, you are correct, VW is free to hire whomever they wish, and we are free to respond however we wish. Which includes “whining”, complaining, boycotting, etc. I don’t see any inconsistency.
OoltewahBoy
January 21st, 2011
8:55 am
To Obama Zombie: LOL
Drifter
January 21st, 2011
8:55 am
A free market doesn’t exist when governments start cutting deals with private companies, as they have done in this case. The market is only free when the government stays completely out of it.
TN, the land of spoiled crybabys
January 21st, 2011
8:58 am
OoltewahBoy – No, VW is probably violating MANDATED EEO hiring practices. Cry all you want (like most people from TN), the facts are the facts and right now, something in TN smells like Knoxville.
bo
January 21st, 2011
9:05 am
the question is why didn’t Perdue hold Kia to similar hiring practices?
Spectre
January 21st, 2011
9:07 am
“TN, the land of spoiled crybabys” you are correct. Just like Knoxville… only larger.
rb
January 21st, 2011
9:09 am
Relax folks!!! Georgia mechanics will have plenty of work after these cars have been on the road for a few months.
Drago
January 21st, 2011
9:11 am
Seems pretty simple to me.
Boycot Volkswagen.
Actually ... KIA sucks
January 21st, 2011
9:15 am
“Relax folks!!! Georgia mechanics will have plenty of work after these cars have been on the road for a few months.”
So true for the Kia products, we make ‘em here, and well repair ‘em too.
Hmmm
January 21st, 2011
9:17 am
“Boycot Volkswagen.”
Don’t you mean boycott? I wonder if their was a spelling test to gain employment w/ VW?
PS – Boycotts don’t work. But, go for it Drago!
db
January 21st, 2011
9:18 am
WRONG – Do you know how many Alabama residents are working at the Kia plant?
Hmmm
January 21st, 2011
9:19 am
there NOT their … I should get my secretary to blog for me as well!
jcatl
January 21st, 2011
9:22 am
Tennessee’s governor was able to land the plant. Georgia was not because of our mentally challenged and morally bankrupt governor. To the victor go the spoils.
At least if you buy a Passat you will know that Americans assembled it.
worth repeating
January 21st, 2011
9:26 am
“…VW has every right to choose who they hire. They could choose to only hire people from Hamilton County if they wished. Even if VW did hire some Georgians it would not solve unemployment in North Georgia. This isn’t about whether TN or VW is being fair. It’s about the state of Georgia failing it’s people.”
Stupid moron georgians are mad at VW & TN. IT’S SONNY’S FAULT FOLKS, all he could manage was a KIA plant.
worth repeating
January 21st, 2011
9:28 am
and please VW is a good auto maker, they will soon be the largest auto maker in the world. What wold you rather have a vw or a kia? haha
Nospin
January 21st, 2011
9:29 am
It costs Tennessee something like $200,000 in lost taxes for each employee at VW. They wanted it that bad, let them have it.
Mishap
January 21st, 2011
9:37 am
Nospin,
We paid nearly as much for the Kia plant and we were too stupid to put in any stipulations. I’m sure we paid similar amounts for NCR to move their HQ here. Ain’t corporate welfare grand?
Don't Do It
January 21st, 2011
9:39 am
I’ve had three Maximas… the first two made in Japan, the current one made in Tennessee. The difference in quality is clear. VW – you might wanna rethink this.
Oboma Is My KIng!
January 21st, 2011
9:49 am
What Volkswagon need to do is give them good job to people like me that need it!
The Presdent need to step in and make these haters hire people that need the money!
JR
January 21st, 2011
9:54 am
Georgians who live just across the state line from Chattanooga are just as much a part of the economy of Chattanooga as the people actually living in Chattanooga. Where do you think those people go to shop, eat, conduct personal business, etc? They go to Chattanooga. It’s incredibly shortsighted to deny someone employment just because of where they live.
Keeping It Real
January 21st, 2011
9:59 am
As long as this VW plant doesn’t give any handout jobs to unqualified, jive-talking, lazy and unmotivated Affirmative Action hires, the quality the plant produces should still be consistently good.
Jerry Landfill
January 21st, 2011
9:59 am
Ex-Gov Lump, the gift that keeps on giving…..
FinanceBuzz
January 21st, 2011
10:02 am
The question is not really whether it is right or wrong but is it the best thing to do. The whole question comes up because government is spending taxpayer dollar to skew the free market’s ability to win the plant at a given location. Once those payments enter into the equation, decisions get influenced by non-market factors. If I were a VW shareholder or customer, my concern would be is VW hiring the best, most qualified employee at the wages they offer. By automatically excluding a large number of people in the “Chattanooga metro area” the optimal quality of their workforce is in question. It is hard to buy that the most qualified potential employees within a given radius of the plant all happen to live in Tennessee. When it comes to positions requiring a college degree, I am confident in saying that Georgia Tech and UGA graduates are generally more qualified and better educated than UT grads (I say this and I am a GT alum so I am not being a UGA homer!). So I cannot say this decision is “wrong” – VW is a private company and they did receive Tennessee tax dollars. However, I can say I am not sure it is the best decision if their goal is to hire the most qualified workforce they can.
Gary
January 21st, 2011
10:02 am
“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.”
Not that I agree with this kind of thinking, but in light of it, why didn’t Kia show this same loyalty to Georgia workers
JLM
January 21st, 2011
10:03 am
The Kia jobs should belong to Georgians in the start-uo and growth phase of the plant. During the mature phase, you may want to extend jobs across the borders.
At the end of the day, it came down to the hiring philosophy of Kia and VW. It appear VW elected to be loyal to TN. Lesson learned, our state leadership should insist companies hire Georgians to be egilible for the tax incentives.
Grumpy
January 21st, 2011
10:07 am
What goes around comes around. Kia, which is much fewer than 10 miles from the Georgia-Alabama border, has focused its hiring on Georgia residents, including a number from many miles away, despite the fact that the unemployment rate in nearby Chambers County, Alabama, has hovered around 15 percent and higher for 3 or 4 years.
NotImpressed
January 21st, 2011
10:11 am
To Finance Buzz- I am sure that “backwoods Bubba” north Georgia is just full of GaTech grads that want employment in Tennessee.
I fully agree with GaTech being typically superior to UT but I disagree with your assessment that UGA grads are better than UT grads for degree-requiring jobs. That is, unless the job is “beer-taster”.
Gary
January 21st, 2011
10:13 am
“No production worker from Georgia has benefited from the new VW Chattanooga plant, AJC staffer Dan Chapman is reporting.”
“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.”
@Grumpy…I guess I’m missing your point about going around and coming around.
The NEW Detroit
January 21st, 2011
10:17 am
What economic incentives did the state of GA give VW?
Bobby
January 21st, 2011
10:19 am
Maybe I shouldn’t have bought my 2010 VW Jetta TDI. Should have looked at Ford’s or Kia’s if VW doesn’t like Georgians.
JR
January 21st, 2011
10:28 am
“With all the whininng above, posters forget this is alledgedly a red state based on free trade and no regulations! VW is a public company who can do whatever they please. You forgot your mantra? Oh, it doesn’t apply when it affects you?”
Typical socialist, equating dissent with denying someone their rights. Of course, the irony is people like this don’t want you to have any rights in the first place. Their comments are simply the proverbial ‘red herring’.
jnorwood
January 21st, 2011
10:33 am
So if I am reading this correctly we are supposed to be mad at VW for hiring only people from Tennessee and mad at Kia for hiring people from Alabama which is what we are mad at VW for not doing. Isn’t that very hypocritical of Georgians?
deegee
January 21st, 2011
10:35 am
Sonny and the hicks that are still running the show down at the Capitol couldn’t even keep a NASCAR race in GA. What are you going to do, boycott NASCAR? You would be better off demanding more from our elected officials.
“In August, 2010 Speedway Motorsports Inc. owner Bruton Smith announced that an annual NASCAR Sprint Cup race would shift from Atlanta Motor Speedway to the Kentucky Speedway near Cincinnati.
This happened despite some last-minute, hands-on lobbying from the most powerful men in the state Capitol – Gov. Sonny Perdue, Lt. Gov. Casey Cagle, and House Speaker David Ralston, who made a last-ditch personal visit to Smith.”
baby
January 21st, 2011
10:42 am
Why are people upset with VW about this? Makes no sense. I guess it would be too much to ask people to actually know what they are talking about. Business friendly states get the business. Point your finger at your leadership who you keep electing if you are not happy
Tom Joad
January 21st, 2011
10:47 am
The race to the bottom continues.
$577 in tax breaks and incentives for roughly 2000 jobs. How much are they starting at – 16 bucks an hour? These are non-Union jobs with minimal benefits where both heads of household will still need to work full time in order to pay the bills. How do people even send their children to college anymore?
Meanwhile, Chattanooga will continue to face budget cuts. But at least the state of Lower Saxony, Germany (who owns 20% of Volkswagen) and the Emirate of Qatar (17%) will get good returns on their shares.
Live from TN
January 21st, 2011
10:53 am
Attention Tom Joad:
VW located to TN precisely because of non-union interference. And if you bothered to do any research, you would know that the average production worker at the new VW plant will average around $39,000 – $42,000 in yearly salary. VW was also partly responsible for helping Chattanooga and Bradley County land not one, but TWO, new Amazon.com distribtion facilities, one of which will be built directly across from the VW plant.
Ree-bah Ree-bah Ondulay!
January 21st, 2011
10:54 am
Hey, Tow Truck Driver, from page 1. If you are in the ATL area you have probably met my daughter/son-in-law. Passat=Money Pit
tt
January 21st, 2011
11:06 am
I guess the whiners are too stupid to change address if they really want a VW job. Last time I ck Chattanooga was in TN not GA. TN owes GA nothing. Dang GA gov’t and gov. Purdue fault they cant even get new corporations to come over here. Even Red Hat passed on GA when looking for a new HQ so GA must not be to enticing in terms of offering incentives to companies. Look for unemployment in the state to be 11-12 % .. That is your future .. LOL
Tom Joad
January 21st, 2011
11:07 am
Just so Georgia doesn’t feel left out…
Abolish Progressive Era child labor laws and make public school children assemble small electronics for a Chinese company (they have such small hands) two hours out of each day. Our kids don’t need science or history classes, anyway. This might make the public school system self-supporting and, would free up more state money for things like purchasing a hunting club.
Tom Joad
January 21st, 2011
11:12 am
Well, I guess after being underpaid at the manufacturing plant, the new American worker could pick up a night shift at not one, but TWO of the Amazon distribution centers located next door.
HTH
January 21st, 2011
11:33 am
I think I am going to get me one of them little cars. Mama always said they are neighbors. So take care of them. Seriously now. Y’all we get everything Tennesee gets an aquarium and a car company and you just go to pieces. I see this as nothing but opportunity.
I think what we need to do also is built that high speed rail to Chattanooga. So we can hurry up there to get one of those cars. Seriously we need to expand Atlanta to further reachs. I think a rail line just might do that.
Bryan
January 21st, 2011
11:42 am
The jobs belong to VW…no one is entitled to them. VW is free to dispense the job to whomever they want.
Stateline
January 21st, 2011
11:56 am
Well, you have created a lot of conversation with a lot of misinformation. I live in Georgia and have several friends and clients that live in Georgia and are working for VW. I would guess that it does number in the hundreds.
Ever wonder why the AJC has lost creditbility? I am just stunned that reporters can be so incompetent and create such controversy. Thank God Atlanta is a hundred miles away so VW won’t confuse us with you.
Getting Real
January 21st, 2011
11:59 am
I find the premise of this entire questionable, not to speak of its tone.
Has anyone considered that there might be practical reasons for VW to hire only those from TN?
While this is being interpreted in the realms of only a Socio/Political/Economic debate could there be another reason for it. Like a business reason?
From what I have read above:
- TN did not require VW to hire only TN residents.
- TN does not have an state income tax, but GA residents would still be paying taxes on TN income, presumably.
- Could it have something to do with a cross border liability concern … possibly with GA?
In our highly mobile society, is moving to TN for a job not realistic … especially if you live so close that you could. Establishing residence by renting is an option to qualify you, I’d think.
VW is a public company that is scrutinized by many, many people, not the least of which are the share holders and the public. Certainly there will be PR response to this in time. No one wants to be accused of unreasonable discrimination, after all.
Of course that has not stopped many here (fortunately the minority), of spouting off deep rooted biases. Overall, the tenor of this debate is disturbing in that much of it is flat out bigoted including Racism, references to Nazism, and and even Hitler.
Reading many of these comments would be unnerving to anyone person potentially researching to do business with GA … and believe it, they are reading these unfortunate lines. I know I’d think twice if I was some international manufacturer.
So how about we dig a little deeper and find out the reasoning for such purported hiring standards before we continue with 5th grade reactionary playground bully talk folks, eh?
Live from TN
January 21st, 2011
12:29 pm
Wow, could Tom Joad be any more of a sore loser? VW also has a generous benefits package, and an on-site medical and fitness facility for its employees. Not to mention the additional 7000-8000 jobs that would directly impact Hamilton County due to the spinoff supplies that will ship parts to the plant.
Tom Joad needs to buy a serious clue on how a free market economy works.
Keep Digging That Hole
January 21st, 2011
12:30 pm
Integrity is not one of mottos GA can use in it business public relations.
When the Georgia State Senate Chair of the Banking and Financial Institutions Committee, Senator Jack Murphy, is named in a federal FDIC lawsuit … for dealing in his own bank for ‘gross negligence and and various breaches of fiduciary duty’ … and yet refuses to step down (Ever heard of avoiding conflict of interest or recusing yourself, Jack? But you are no judge.)
… and then is even supported his Senate buddies of the majority Republican ruling party
… what can one say about integrity at the highest levels?
( See: http://blogs.ajc.com/political-insider-jim-galloway/2011/01/20/your-morning-jolt-senate-banking-chairman-says-he-wont-step-down/ )
The Republican led ‘Good ole boy’s business club’ and still effectively shutting GA out of a lot of potential international business with the rest of that ‘big world out beyond our state borders.’
Will Nathan Deal as governor make the same poor mistake of letting a rabid ’shoot to kill’ (quote Jack Murphy, again) good ole boys posse run amok with bigoted, anti-immigrant banter (Jack Murphy, again) to make our state suffer more national and international abhorrence.
It can’t be and isn’t good for business.
Oh … and same Senator Jack Murphy is coincidentally also Vice-Chair of the poorly performing GA State Senate Economic Development Committee.
With old clowns like this, no wonder GA can’t but loose and not do better business with the rest of the world.
Pay back might be tough
January 21st, 2011
1:01 pm
Georgians are you reading? When it comes to buying new or used vehicles, remember this. They won’t hire Georgians, Georgians should NOT purchase VW products! Enough said.
WJH
January 21st, 2011
1:07 pm
The bottom line is VW gets credits for the instate workers and the Government of Georgia missed the boat again – way to go Sonny
Tom Joad
January 21st, 2011
1:32 pm
What is “free” about a “free market” that is giving away 577 million dollars in tax breaks and “other” financial incentives? Why do we want a system that pits states in competition with one another just to see who can give away the most to get back the littlest?
Looks to me like the “free market” is pretty expensive for those who actually provide the labor.
techfanplus
January 21st, 2011
1:37 pm
This should not be legal in the U.S. Hope Georgians will remember this when buying that new car
KenneMa
January 21st, 2011
1:41 pm
I love my VW Passat. It is longer lasting, better made, more safe and more feature-rich than any comparable American made car. VW has the right, being an American business, to hire who they please. I think it is a little egotistical to think that North GA has more talented people than East TN. TN made them a great deal, GA did not. I agree with the person above who said you all need to be angry with the nitwit politicians you elect year after year and yet are surprised that nothing changes. Also, whose to say if this policy will last forever? Maybe folks from TN will get first interviews but if VW can’t find qualified folks, then they will broaden their horizons, as does any successful business.
Mark
January 21st, 2011
1:49 pm
Good lord, are 1,300 jobs really worth $577 million in state giveaways?
Ron
January 21st, 2011
2:02 pm
The site of the VW plant in Chattanooga is really the site of the Volunteer Army Ammunition Plant (VAAP). During World War II this plant produced the TNT that Allied forces used against the Germans. Now, some 60 years later Tennessee has given this land to the Germans and they are charging Tennessee around $250,000 per worker for the right to work in their plant. And, they want to sell their cars to the rest of us for about $20,000 per car. This is Globalization at work.
John Boehner
January 21st, 2011
2:03 pm
It’s Obamas fault.
Live from TN
January 21st, 2011
2:11 pm
Hey Tom, why don’t you take a drive up I-85 to Spartanburg, SC? See for yourself what a German auto manufacturer (BMW) did for the economy of Spartanburg-Greeneville.
VW got tax breaks from the state of TN, not GA. And once again, you have overlooked the fact that for every one job VW creates, a force multiplier of 7-8 additional jobs will be created.
Wacker Chemical is also building a $500 million dollar biochemical production facility just 20 miles north of Chattanooga. That’s another 1,000 jobs. Just because TN is on the ball when it comes to economic development is no reason to whine and moan. Don’t like it? Move to another state or another country.
Bryan
January 21st, 2011
2:11 pm
@techfanplus…Not legal??? Are you kiddning?? There should be a law that requires VW to hire Georgians? These jobs BELONG to VW and not the government. VW gets to decide who gets the jobs…and people wonder why we are in this sad state of affairs.
Realist
January 21st, 2011
2:12 pm
The state of Tennesee stole money from their taxpayers to “buy” VW into their state. In order to keep the sheep of Tenn. happy, they no doubt are requiring some tit for tat on the part of VW. We all allow this kind of corruption. No doubt KIA was a similar recipient. The problem is not with VW but with our government in general and the state government of Tenn. in particular. As always, government is the problem.
Bryan
January 21st, 2011
2:12 pm
*kidding
Realist
January 21st, 2011
2:18 pm
The use of government power to promote one business over another is generally referred to as Merchantilism. Today it is the foundation of our country. People like to think that what we have is capitalism. What we actually have is Merchantilism or Corporate Capitalism.
Shadow7071
January 21st, 2011
2:24 pm
Realist – you don’t know how close to you are to the truth regarding Tenn Tax payers.
Realist
January 21st, 2011
2:28 pm
Ron – This is not globalization, it is crony capitalism. Strip government of the power to tax and the power to regulate and companies will have to survive on their own without being able to rob the citizens for their own benefit. There is nothing wrong with a global marketplace. The problem as always is with government.
td
January 21st, 2011
2:35 pm
Well, I guess it is time for Ga. to take back our land and start draining the Tennesee river and diverting it to Atlanta?
Live from TN
January 21st, 2011
2:35 pm
Funny, we folks in SE TN did not hear a single complaint from GA residents when Home Depot built their new corporate HQ in Vinings, or when UPS relocated to Alpharetta, or when the government of GA tried steal water rights from the citizens of TN for the TN River watershed.
I wonder what the tax breaks were for those companies, and where is the outrage from GA residents? First GA wants our water, now our jobs.
Hilarious. Maybe if state government was managed better, you would not have continous furloughs for state employees.
Ron
January 21st, 2011
2:41 pm
Realist – I didn’t that there was anything wrong the “Global Market Place”. Worked for a truly global corporation for more than 20 years. Got stacks of PowerPoint slides talking about Globalization. But, this is how Globalization is being played out in America. Like it or not. And, yes, politicians are going to any lengths to solve this problem of unemployment. No matter how crazy the decision. Chattanooga, Hamilton county and Tennessee paid a “Kings Ransom” to attract VW and a forecast 2,500 jobs. And, they’ve gone to great (maybe damaging) lengths to protect their investment/prize. This is the new face of Globalization and it is everywhere i.e., Ga, Tn. Al, SC, NC, MS. Corporations are waging a high stakes game of bidding for jobs. It’s expensive and in the end there are more losers than winners. In this case Ga is a loser.
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?