A year ago this month, VW  declared that Chattanooga had won both their hearts and their deep pockets for a $1 Billion Assembly plant.  Along with that declaration, VW pledged to invest in the community, creating an estimated 2,000 factory jobs and thousands more at suppliers and other related businesses in the Chattanooga area.

That was before the economy went bonkers.  So, one wonders, how is that pledge working out for Chattanooga and its surrounding Tennessee cities given the economic situation we're in today?

Well, in May they erected the first wall of what will become VW's first production facility in the US since 1988....that looks like it's still a "go."

"The partnership between the state, the community and Volkswagen is creating an impact that is literally concrete," said Governor Bredesen. "The dramatic change we've seen on this site over the past year is clear evidence of Volkswagen's commitment to the people of Tennessee and to the future of the company."

According to VW press, more than 500 workers are now building the Volkswagen assembly plant, on which nearly $436 million in contracts have been awarded to state and Chattanooga area firms so far.

“Our decision one year ago to invest in a U.S. production facility was a strategic step forward in our commitment to the North American market,” said Frank Fischer, chief executive of VW’s Chattanooga operations.

Also, another $230 million will be spent over the next 20 years for EPB to provide power to the Enterprise South industrial park plant site, according to VW.

When complete, the plant will produce a projected 150,000 cars a year. The Chattanooga factory will build a new mid-size sedan specially designed for the North American market.

Approximately 30% of the cars will be powered by Volkswagen's TDI Clean Diesel Technology.   Production is slated to begin in 2011.

The package to woo VW to Tennessee was an estimated $577 million in local, state and federal incentives.

Hiring for VW’s professional posts continues and will accelerate through 2009, company officials said.   Volkswagen plans to accept applications for production slots in late 2009 with hiring to begin in early 2010.

“Our project in Chattanooga is made up of four pillars — the plant, the product, our suppliers and our people. We are committed to hiring locally, and we are convinced that we will have a best-in-class work force,” said Hans-Herbert Jagla, executive vice president for human resources locally for VW.

U.S. Sen. Bob Corker, R-Tenn., said construction of the plant and development of its supplier network are on track.

“All of us are anxious for the day when the first vehicles roll off the assembly line,” he said.

U.S. Sen. Lamar Alexander, R-Tenn., called Volkswagen and Chattanooga the “ideal marriage.”

Things seem to be moving well for these newly weds.

U.S. Rep. Zach Wamp, R-Chattanooga, said the excitement Tennesseans felt a year ago at the announcement of the creation of thousands of high-paying, quality jobs has not worn off.

And yet, there is some reality being infused.  For all of the challenge involved in getting an offer from the company, some, including two Cookeville professionals, have been made offers and declined, due to salary concerns. 

One such professional (who prefers not to be named) said "It really was, in most ways, my dream job.  I would have loved working for the company, but the salary offer was disappointing.  I had another offer that was significantly higher and had to go in that direction." 

Hamilton County Mayor Claude Ramsey said that after years of site preparation and recruitment, it’s remarkable to see the progress VW has made in a year.

Mayor Ron Littlefield said the city “couldn’t have asked for a better economic development partner than Volkswagen.”

Matt Kisber, state Department of Economic and Community Development commissioner, said ECD is talking to firms interested in following VW’s investment and “I’m confident the ripple effect in our state’s economy is just beginning.”

Tom Edd Wilson, the Chattanooga Area Chamber of Commerce’s CEO, called VW “a world-class company on the rise, and it is also a perfect fit for our community culture and aspirations.”

Adam Green of the local group Hire Here said it’s encouraging VW and other local companies to continue to first consider local firms when Chattanooga has a business fitting the project.

So, all in all, the votes seem to be that VW is in fact living up to its promises, and that there continues to be reason for enthusiasm in this area for the move.