VW lawyer: Automaker has deals in place outside TN

VW lawyer: Automaker has deals in place outside TN

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By ERIK SCHELZIG
Associated Press

NASHVILLE, Tenn. (AP) - Volkswagen warned Tennessee officials during difficult negotiations over incentives to expand the automaker's Chattanooga plant that the company has already secured offers to build a new SUV elsewhere.

Volkswagen attorney Alex Leath in a Jan. 27 email to the state Department of Economic and Community Development said "non-deal" issues were causing delays in completing the deal in Tennessee, an allusion to a dispute over whether the United Auto Workers would represent workers at the plant.

Republican leaders in the state oppose the UAW gaining a foothold with Volkswagen, and some warned that the state Legislature could reject incentives if the UAW were to organize the plant.

The UAW ultimately lost a union vote at the plant in February, and on Monday abandoned an appeal of the outcome.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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