If Volkswagen AG decides to build its U.S. assembly plant in the South, the German company will join other foreign automakers that are increasingly turning the region into a hotbed of car manufacturing.
The South offers automakers ample highway and rail systems and proximity to the large market of U.S. consumers. But its main attraction: Existing auto plant workers, even those who are victims of other industries exporting jobs, have rejected overtures by the United Auto Workers."Foreign-owned automakers have been a tough nut for the UAW to crack, and the South is particularly difficult," said Harley Shaiken, a University of California, Berkeley, professor who specializes in labor issues."That is without question an important part of their location decision," he said.
Volkswagen's plant will be part of the company's strategy to increase its presence in the U.S., where the maker of the Jetta, Golf and Beetle holds just 2 percent of the market.VW executives have narrowed their site options to Alabama, Tennessee and Michigan. All three states are offering financial incentive packages. The automaker's representatives and economic development officials won't discuss the site search.A Tuesday meeting of the company's management board in Frankfurt, Germany yielded no decision on where to build. Volkswagen's supervisory board, the equivalent of a U.S. board of directors, is to meet July 15, with an announcement expected soon afterward.
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