Zach Wamp

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WASHINGTON — When Congress raised auto mileage standards last year for the first time in decades, the Big Three domestic automakers, along with Toyota, vigorously lobbied against the changes they said would raise their costs and force job cuts.

Volkswagen, however, had no complaints about the bill, according to Tennessee lawmakers. Executives with Europe’s largest carmaker say they wholeheartedly embrace the new fuel economy standards.

“These tough, but fair, standards are an important step forward and reflect the Volkswagen Group’s vision for sustainable mobility,” said Jill Bratina, a spokeswoman for the automaker, which has announced a $1 billion automobile plant at Chattanooga’s Enterprise South industrial park.

The energy bill passed by Congress in December 2007 increases fuel economy standards for vehicles to 35 miles per gallon by 2020, up 40 percent from current levels, which were established in 1975. The legislation also mandates the use of up to 36 billion gallons of ethanol by 2022, a sixfold increase.

Ms. Bratina said the midsized sedan that will be produced at the Enterprise South plant still is in design. Speculation about the new auto’s fuel economy is premature, she said.

VW’s diesel-powered sedan and station wagon, which will be available in all 50 states this year, offer a fuel savings of 35 percent over gas engines, she said.

“The company’s fuel-efficient technologies, such as direct fuel injection and (direct-shift) gearbox that are offered throughout our product range, along with our market segment focus on smaller footprint vehicles, position us well to meet the new regulatory standards,” Ms. Bratina said.

However, VW also is part of the Alliance of Auto Manufacturers, which earlier this month urged federal regulators to slow down the National Highway Traffic Safety Administration’s proposal to hike fuel efficiency standards by 4.5 percent annually through 2015.

The Safety Administration has the authority to implement and enforce the new mileage standards imposed by Congress.

The proposal could cause cuts of up to 82,000 auto jobs and reduce sales by as many as 856,000 vehicles by 2015, the automakers said.

U.S. Sen. Bob Corker, R-Tenn., a member of the Senate Energy Committee who voted in favor of the energy bill, said VW officials never brought up the subject of mileage standards in any of his discussions with them leading up to the plant announcement. He said he welcomes Volkswagen’s focus on fuel efficiency.

“Instead of a billion-dollar investment for a product that’s not so suitable for $4 (a gallon) gasoline, it’s going to be great for Chattanooga that this plant is being designed to build a product that meets our needs today,” he said.

With the University of Tennessee and Oak Ridge National Laboratory actively researching biofuels, U.S. Rep. Zach Wamp, R-Tenn., said Volkswagen’s commitment to diesel vehicles dovetails perfectly with the state’s interest in cleaner-burning alternative fuels.

“The potential for biodiesels under this research could be 70 to 80 mpg,” said Rep. Wamp, who also voted for the increased mileage standards. “This new vehicle they’re going to make complies with our new law, so they’re ahead of the game.”

Ms. Bratina said the company is willing to explore partnerships with Tennessee’s research and academic institutions but has not yet developed any concrete plans. VW also has a concept car powered by a hydrogen fuel cell, a technology being researched by the University of Tennessee at Chattanooga’s SIM Center.

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