TN politicians fretting about VW troubles

Excerpts from a Times-Free Press story:

House Majority Leader Gerald McCormick, R-Chattanooga, said VW needs to get to the bottom of the scandal.

“You know they’re talking about fines. I think they need to be talking about people going to jail if they did this,” McCormick said. “It’s a huge fraud by a huge company that has plenty of attorneys to vet this kind of thing. There’s no excuse for it.”

McCormick said plant workers have asked him, “‘Do you think this is going to affect us? Or are they going to close the plant, that kind of thing. I can’t imagine they would close the plant after making that big investment. It wouldn’t shock me if they didn’t slow down their expansion plans though.'”

Meanwhile, Haslam said he has two concerns.

“No. 1, we have an investment in the original plant and then the expansion. Second, we obviously have a vested interest in their success; I mean, in them selling cars. And so we’re urging them to get everything out in front of everybody as quickly as possible so existing customers can understand what the solution is going to be and [so] that Volkswagen can have a clear path forward.”

Tennessee government provided an estimated $358.2 million of the original $577.4 million in incentives that drew Volkswagen to build its Passat in Chattanooga. Local governments provided the remaining $219.2 million.

And this year Tennessee, Chattanooga and Hamilton County governments committed to more than $260 million in incentives for a new line of SUV production.

“Obviously there’s a lot of questions out there in the consumers’ mind. I think that’s why it’s really important for Volkswagen to come out quickly and say, ‘Here’s what we’re going to [do to] address our existing customers and here’s why we can assure potential customers that they’re going to get the vehicle they think they’re buying,'” Haslam said.

Watson said there are worries of a domino effect on jobs related to the plant and its suppliers.

“That’s all of our concerns,” the Senate speaker pro tempore said.