Corresponding in late January with the state’s Department of Economic and Community Development, VW attorney Alex Leath claimed the company had already established incentive deals in locations outside of Tennessee, according to excerpts published by The Tennessean and the AP.
“While we understand there are some ‘non-deal’ issues that are causing a delay in the TN solution, VW has been successful in reaching agreement on terms at the alternative locations,” the letter reads.
The vote was not held until two weeks after the letter was reportedly sent, however outside lobbyist groups had already launched anti-union campaigns and Republican state officials were speaking out against the UAW. Later reports suggested the state made a $300 million incentive offer contingent on the vote outcome.
The company has not publicly announced which facility will get the work, keeping the information officially confidential ahead of the United Auto Workers’ failed unionization vote. Tennessee Senator Bob Corker in February claimed to have inside information that the Chattanooga plant would be chosen if workers rejected the organization attempt, however the comments appear to have been unsubstantiated.
Volkswagen has argued that the unionization vote would have no impact on its decision surrounding the SUV site, though the company voiced preference for establishing a German-style works council — with or without the UAW. The position has continued to draw fire from Republican state officials, suggesting the incentives may be withheld despite the UAW’s loss.
Incentive packages typically play a significant role in the site selection process. The Chattanooga facility has only been open for three years, established with the promise of more than $500 million in government incentives.
The new SUV is expected to be built in Mexico if the company decides against expanding its Chattanooga plant.
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