A University of Tennessee at Knoxville research study released last week shows that Volkswagen Chattanooga activities created 12,400 full-time jobs at Volkswagen, at suppliers, and in the economy, are responsible for $643.1 million in annual income, and increase state and local tax revenue by $53.5 million annually.
The UTK study states that of the 12,400 full-time jobs, the Chattanooga plant directly employs 2,415 employees and indirectly employs 9,985 employees through the suppliers and other companies where Volkswagen spends its earnings and multiplier effects. The company has attracted 17 supplier companies to the area.
Of the $643.1 million that Volkswagen pays, $159.2 million is paid to direct Volkswagen employees. The indirectly employed account for $483.9 million in income due to multiplier effects.
The study also reported that all jobs paid directly by Volkswagen Chattanooga earned on average at least $50,000 in 2012, which includes bonus, benefits, and overtime.
“The people of Tennessee, Hamilton County, and Chattanooga made a commitment to Volkswagen in 2008,” said Frank Fischer, CEO and Chairman of Volkswagen Chattanooga. “I’m pleased that this report shows that our project has been very successful, and the investment has proved to be a wise one,” Fischer said.
The study estimates that the Volkswagen plant increases state and local tax revenues by $53.5 million annually. State revenue tax is estimated to increase $31.2 million, and local revenue tax is expected to increase by $22.3 million.
Source: Volkswagen