Volkswagen Chattanooga Expansion Talks Stalled

Apr 8, 2014

NASHVILLE, Tenn. (AP) — Expansion talks at Volkswagen's Chattanooga plant have ground to a halt amid disagreements about the role of organized labor at the Tennessee factory.

An acrimonious vote in February at the company's only U.S. plant was a narrow defeat for the United Auto Workers union.

Since then, the union has challenged the outcome of the vote with the National Labor Relations Board; a top labor representative on Volkswagen's supervisory board has denounced the actions of U.S. Sen. Bob Corker and Gov. Bill Haslam; and the governor has suggested the state has been unable to negotiate incentives with a VW official with final decision-making power.

State incentives for expanding the plant would have to be approved by the state Legislature, which is preparing to adjourn for the year in the next few weeks.