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Tennessee official to VW: `Circumstances have changed'

 
Posted April 25th, 2014 @ 1:00pm by News Center

NASHVILLE, Tenn. (AP) _ Emails obtained by WTVF-TV indicate that as recently as two weeks before a union election, Volkswagen was still moving forward with a draft memorandum of understanding on Tennessee state incentives to expand the automaker's Chattanooga plant.

 

But the incentives offer was withdrawn. Economic and Community Development Commissioner Bill Hagerty told Volkswagen executives in a Jan. 31 email that ``circumstances have changed'' since the state made the $300 million incentive offer in August, and the package was ``no longer relevant.''

 

That same day, a Hagerty aide emailed Volkswagen officials to tell them that the dollar figures were being removed from the draft agreement.

 

The United Auto Workers this week withdrew its appeal of a worker vote against unionizing, and Gov. Bill Haslam says he hopes to renew negotiations on the incentives.

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