[July 20, 2008]

Chattanooga Times/Free Press, Tenn., Tom Griscom column: Chemistry: that magic ingredient

(Chattanooga Times (Free Press, TN) (KRT) Via Acquire Media NewsEdge) Jul. 20--Intangibles.

That word was used repeatedly last week as Volkswagen announced its decision to locate a manufacturing facility at Enterprise South.

Yes, the incentive package that encourages a company such as Volkswagen to choose one site over another is not overlooked; it is part of the negotiations. But although chemistry measured in terms of personal relationships is difficult to express in numbers, it is an essential part of the mix nonetheless.

At the news conference here on Tuesday, Stefan Jacoby, the CEO and president of Volkswagen Group of America, said his company's decision to locate its plant here was about more than the site.

"We needed a fit that represents the heritage of Volkswagen and the customers we serve," he said. "This is America at its best, and we in Germany like to think Volkswagen is the best."

He referred to his company's focus on the environment and sustainability.

"You overcame environmental challenges over the last 30 years and showed what Chattanooga could be," Mr. Jacoby said. "Chattanooga's focus in on protecting this area, and environmental sustainability is important to Volkswagen."

No one will know if the image of environmental stewardship was hammered home on an early summer evening as Sen. Bob Corker stood on the terrace at the Hunter Museum with several Volkswagen officials.

After completing a briefing that was prepared in German, the VW delegation moved to the Hunter. Sen. Corker, the former mayor of Chattanooga, accompanied the group and took them outside of the facility that looks toward the aquarium and overlooks the Tennessee River.

One of the VW officials stated at that time that he had "no idea of Chattanooga," particularly the view of mountains, water and planned growth.

There is no way to know whether other personal touches made a difference.

At the second dinner session at the home of Sen. Corker, a group of 16 sat around the table, and off to the side in an adjacent room, Mr. Jacoby and Gov. Phil Bredesen held a private discussion on details of the possible location of a VW plant here.

During the evening, Sen. Lamar Alexander, who is a skilled pianist, offered his rendition of "The Tennessee Waltz." Later at the announcement news conference, Mr. Jacoby laughingly gave him a 95 percent rating as to its importance in the decision process for the VW team.

There was a signed photograph of butterflies -- part of a Tennessee Aquarium exhibit -- taken by former Sen. Howard Baker and with a personal note addressed to Mr. Jacoby.

Mayor Ron Littlefield presented the German team with the lyrics from "The Tennessee Waltz" -- one side in English and the other in German.

Perhaps it was the movement of dirt and trees at the Enterprise South site that impressed the VW delegation.

After questions were raised about the terrain at Enterprise South and

whether the site could be prepared in time for an aggressive construction schedule, local officials went to work.

Chattanooga was competing against a site in Limestone County near Huntsville, Ala., that was a flat soybean field.

Within days after receiving the VW inquiry, land-clearing equipment was on site at Enterprise South, leveling hills and removing other landscape. A Web camera was positioned at the site that allowed the VW officials to observe firsthand the land excavation. There also was a commitment to replace trees removed from Enterprise South -- two for one -- as a sign of environmental stewardship.

Whether watching the land work tipped the balance will probably never be known, but once more there was a signal to the VW team.

As the head of Volkswagen Group of America said: "The intangibles are tangible."

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