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VW expanding in Chattanooga, hiring workers ahead of SUV production

Hey, look! We're writing about Volkswagen's Chattanooga, TN factory and the focus isn't on yet another unionization effort. That's because the big news at the still-new factory is VW's plan to expand and increase its workforce in preparation for the arrival of the German brand's long-awaited midsize crossover. The expansion, which will add over half a million square feet of factory space, overhaul the assembly, body and paint shop and add 2,000 employees to the factory's ranks, officially kicked off last month. "This is a very exciting time in the history of Volkswagen Chattanooga," president and CEO of operations at the plant, Christian Koch, said in a statement. "A lot of hard work is going into adding this second vehicle line to the plant, but it is crucial to our efforts to move forward in America." "Not only will Volkswagen's expansion create thousands of new jobs, it will strengthen their roots in our city," Chattanooga's Mayor, Andy Berke, said in a statement. "From the construction at the plant to the development of a visitors center, there is no doubt that Volkswagen is invested in Chattanooga." VW Chattanooga has been a constant in the headlines over the past few years as pro-union and pro-business interests have battled over the souls representation rights of its roughly 1,500 workers. Just over a year ago, the UAW was defeated in its initial unionization bid, although pro-labor interests have not gone quietly into the night. Construction is expected to continue for two years, with production of Chattanooga's second vehicle expected to commence in 2016. Scroll down for the official press release from Volkswagen. VOLKSWAGEN CHATTANOOGA'S PLANT EXPANSION UNDERWAY Feb 24, 2015 Construction Will Add 2nd Vehicle Line: New Midsize SUV CHATTANOOGA, Tenn. (Feb. 24, 2015) - Construction is underway at the Volkswagen Chattanooga manufacturing facility in preparation for production of an all new Midsize SUV. The first phase of construction started in early January 2015 and will continue for the next two years. Volkswagen Chattanooga CEO and President Christian Koch gave a site tour to Chattanooga Mayor Andy Berke and Hamilton County Mayor Jim Coppinger on Tuesday, highlighting the necessary expansion of the production areas in the body shop, paint shop and assembly areas.

VW has received several tentative bids for Ducati

Italy's Benetton family is vying with motorbike firms and buyout funds for control of Italian motorcycle brand Ducati, which is being sold by Germany's Volkswagen, sources involved in the process told Reuters. Volkswagen, whose Audi division controls Ducati, has received several tentative bids with the Benetton family's investment vehicle Edizione Holding valuing the Monster motorbike maker at $1.2 billion, one of the sources said. As well as Edizione Holding, U.S. buyout fund Bain Capital, which owns a stake in Ski-Doo snowmobiles maker BRB, and two Indian motorbike firms, Eicher Motors and Bajaj Auto, have also bid for Ducati, the sources said. Indian carmaker Eicher controls Royal Enfield, a motorcycle brand established in 1893 which ranks as one of the oldest. Strategic bidders also include U.S. automotive firm Polaris Industries, which earlier this year said it would wind down its struggling Victory Motorcycle brand. A shortlist of bidders for a second stage of the auction could be selected as soon as Saturday, two of the sources said. Volkswagen adviser Evercore has a long list of bidders including private equity funds such as Ducati's previous owner Investindustrial, CVC Capital Partners, Advent and PAI, all hoping to outbid industry players, the sources said. If it gets to the second round, Edizione Holding could seek to form a consortium with a financial investor, two of the sources said, in a bid to secure control of Ducati, whose racers have won the Superbike world championship 14 times, with Carl Fogarty and Troy Bayliss its most successful riders. Audi, Edizione Holding, Investindustrial, Advent and PAI declined to comment, while the other interested groups were not immediately available for comment. PRICING CHALLENGES For some buyout funds, Ducati's valuation of up to $1.4 billion – which sources said is based on a multiple of more than 10 times its core earnings of roughly 100 million euros – is a tall order as they lack the synergies that some motorbike makers could achieve. But Investindustrial founder Andrea Bonomi, who sold Ducati to Audi for about 860 million euros in 2012, is serious about a comeback, one of the sources said. China's Loncin Motor was among a group of industry players that initially showed interest in Ducati, alongside Harley-Davidson. The latter has, however, decided against making a bid due to Ducati's price tag, while it could not be established if Loncin Motor had carried on bidding.

VW using other manufacturing locations as leverage in battle with TN [w/video]

We've reached a new step in the ongoing drama at Volkswagen's factory in Chattanooga, TN. The United Auto Workers recently dropped its opposition to the union vote and agreed that it wouldn't hold another ballot for at least a year. Now, the new question becomes where VW is going to build its forthcoming midsize SUV.
Earlier, it had been considered all but certain that the SUV, likely a production version of the CrossBlue concept (pictured above), would be built in Tennessee. However, it seems the Chattanooga factory might have competition to produce it. In emails obtained by The Detroit News, VW's lawyer wrote to the Tennessee economic development department in January saying, "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."
As previously reported, the state of Tennessee allegedly offered VW about $300 million in incentives to build the vehicle there and create an estimated 1,350 jobs, but it later rescinded the deal. Newly leaked documents from NewsChannel 5 (WTVF-TV) in Nashville allegedly show just how close that offer was to being completed. It appears that VW actually sent the government the first draft of a memorandum of understanding agreeing to the incentives, but the state removed the offer in late January.