Reinventing the Automobile

(Excerpts from Stefan Jacoby’s remarks at the Chamber’s Spirit of Innovation Luncheon.)

"It is fitting that the Kruesi Award honors the work of a machinist, John Kruesi, a Swiss immigrant whose son, Paul, settled in Chattanooga. John Kruesi knew how to make good ideas become a reality. Innovation occurs when the dreamer and the do-er join forces. As Kruesi’s colleague, Thomas Edison, put it: "Opportunity is missed by most people because it is dressed in overalls and looks like work."

"Volkswagen’s Chattanooga plant is an integral part of our plan to sell a million cars in the U.S. market by 2018. It is a $1 billion bet on the future of this company, this community and this country. Some question the wisdom of that bet, especially now, when car sales are down. The truth is, if we don’t invest now, we destroy our future.

Of course, we are cutting costs wherever we can. But we are not backing away one inch from our plans for Chattanooga.

It’s not a risk, it’s an opportunity. We know it will pay off -- for Volkswagen and for this region. Our mutually supportive relationship will create jobs, encourage economic growth and help solidify Chattanooga’s growing reputation as a center of

innovation."

"Globally, our company stood out from the pack in 2008 by selling a record number of cars. I would not count on that this year. But we are ready for takeoff when the economy revives -- and we all know it will.

The tough economic environment is accelerating trends that are transforming our industry."

"We know that fuel economy needs to improve to address problems related to fuel prices, energy security and climate change. We are reinventing the automobile."

"At Volkswagen, our goal is a zero-emission vehicle. The day is coming when we will be liberated from fossil fuels, but that day is still years away. We can make cars that run on alternative fuels today. We do not have the infrastructure or the market demand to support them. We still have challenges in making these vehicles affordable, practical, reliable and safe.

That is why we are taking a two-track approach at Volkswagen. We are looking for the fuel of tomorrow while doing everything we can to get the most out of today’s fuels."

"Our clean diesel Jetta TDI is setting world mileage records. During a 48-state trek last year, it averaged more than 58 miles per gallon. And 30 percent of the vehicles produced in Chattanooga will have this clean diesel technology.

Other innovations also increase fuel efficiency. Consumers are reaping the benefits of variable valve timing, cylinder deactivation, continuously variable transmissions, improved aerodynamics, lighter materials and a host of other affordable improvements."

"With innovations such as these, we will have cars on the road that get 50, 60 or 70 miles per gallon. That will happen in the next 10 years." "Volkswagen has always embraced new ideas and new thinking. The pace of innovation is accelerating. And, thanks to our partners in Tennessee, Volkswagen will be at the forefront of change. "