Chamber CEO tries to drive VW business to Bedford

Gov. Phil Bredesen, right, and Commissioner Matt Kisber chat with a Volkswagen executive during a tour of the automaker's plant in Wolfsburg, Germany. (State of Tennessee photo) [Click to enlarge]

Walt Wood, CEO of Shelbyville & Bedford County Chamber of Commerce, was one of 41 Tennesseans who traveled to five German cities Oct. 21-28 on a trip prompted by Volkswagen's decision to locate an automobile assembly plant in Chattanooga.

Tennessee Department of Economic and Community Development organized the trip, with Gov. Phil Bredesen and ECD Commissioner Matt Kisber leading a delegation of elected officials and industrial recruiters. Wood worked with industrial recruiters from Coffee, Franklin and Lincoln counties on a regional marketing approach.

The state only invited communities within a 90-mile radius of Chattanooga to participate, and Bedford County is located just inside that circle.

The Tennessee delegation traveled to Berlin, Wolfsburg, Frankfurt, Munich and Dusseldorf. In each city except Wolfsburg (where they toured VW headquarters), state officials presented a program called "Invest In Tennessee" which pitched the Volunteer State's benefits as an industrial site.

"Commissioner Kisber kept us busy," said Wood. "We made a lot of contacts .... Now, it's our job to follow up." Wood is scheduled to attend a meeting this week in Nashville to discuss marketing strategies.

Although Volkswagen's original equipment manufacturer (OEM) suppliers will be located on its campus in Chattanooga, the second-tier suppliers -- the ones supplying compoents to the OEM firms -- may be farther away.

"They're not all going to locate in Chattanooga," said Wood. Estimates are that Volkswagen will employ 2,000 but that 10,000 jobs will be created in the region.

Some suppliers, he indicated, may be attracted to Middle Tennessee by the prospect of doing business not only with Volkswagen in Chattanooga but also with Nissan in Smyrna, Nissan in Decherd and General Motors in Spring Hill.

"We have the potential of some Volkswagen business already here," said Wood, referring to Bedford County's existing automotive industry suppliers. He said the local Economic Development and Tourism board supported the decision to participate in the trip.

"The ED&T board felt like this was a good investment," said Wood.

Wood said the delegation saw little more than a "very generic sketch" of the car that will be produced at the Chattanooga plant.

Delegations from Alabama and Georgia visited Germany after the Tennessee delegation, but Wood said neither group included the state's governor. He said Volkswagen officials have indicated that they have a comfort level with locating in Tennessee and encouraging their suppliers to do likewise.