Alabama emerges as thee front-runner for VWs American plant

Posted on Wednesday, 21 May 2008 , 04:05:41 byEmil

Filed under volkswagenvwplantu.s.gmVolkswagen

Alabama emerges as thee front-runner for VWs American plant

Volkswagen made the announcement late last month that it narrowed down the possible America plant locations in Michigan, Alabama and Tennessee, but it looks as one state might have an upper hand. If Volkswagen's decision now comes down to some incentives, Alabama likely will win the assembly plant in the U.S.

On the north of Alabama, Nissan and GM call Tennessee home. Nissan has opened its Smyrna factory in 1980 followed by General Motors's Saturn factory in 1985 in Spring Hill. To lure two projects, Tennessee just offered a mix $95.6 million.

"Volkswagen has not yet told us what they need" in the way of the incentives, Development Office Director Neal Wade affirmed. "But when they do, we're ready to give them what they ask for."

So while Alabama holds a clear advantage in the incentives, Tennessee might fight back with some other factors. "Incentives are usually not the driving factor," Bill Fox - University of Tennessee economist told the Tennessean. "Companies usually focus more on such issues as the available labor force, transportation access and other factors related to the specific site."