Volkswagen Group of America selected Jacksonville over four competitors as its Southeast import and export hub, bringing 100 new jobs to JaxPort, Gov. Rick Scott announced Wednesday.
Workers will begin processing about 100,000 Volkswagens, Audis and Bentley vehicles annually beginning in May. As part of the five-year agreement with JaxPort and vehicle processor Amports Inc., Volkswagen Group is investing about $3.4 million in improvements at the port.
Jacksonville replaces Brunswick, Ga., as Volkswagen Group’s primary vehicle processing port.
“Every job impacts a family,” Scott said amid a backdrop of local and state officials, along with about 150 Amports employees. “A hundred jobs right here in Northeast Florida will help 100 families.”
The decision bolsters the region’s economy and solidifies Jacksonville’s stake as one of the country’s largest automobile processors. JaxPort ranks second to Baltimore in vehicle processing, according to the U.S. Maritime Administration.
“Florida’s ports are one of the many reasons why companies are choosing our state as the best place to grow their business,” Scott said.
JaxPort exported a record 450,000 vehicles in 2014, officials said.
“This is a vote of confidence in Jacksonville,” Mayor Alvin Brown said.
Jacksonville was selected by Volkwagen Group over the Canaveral, Tampa, Brunswick and Baltimore ports. Incentives awarded by the Jacksonville Port Authority and Amports include providing surfacing and lighting at the port.
“This announcement reflects what all of us at JaxPort already know: Our tenants, partners and employees are dedicated to offering creative shipping solutions and unmatched customer service, reinforcing our reputation for vehicle-handling excellence each and every day,” said John Falconetti, JaxPort’s board chair.
Jacksonville automobile dealer Jack Hanania said his Volkswagen and Audi dealerships will benefit from having vehicles imported locally.
“This is a great opportunity for us because we can get our customers’ cars quicker,” said Hanania, who is CEO of Hanania Automotive Group, which has 10 dealerships in Jacksonville. “And 100 more jobs — the more jobs we have in Jacksonville, the more wealth we have, and the more wealth we have, the more cars they will buy.”
The Volkswagen Group vehicles will arrive from Mexico and Europe. Also, Volkswagen Passats and, soon, a new sports-utility brand, will be exported after being manufactured in Chattanooga, Tenn., said Carsten Krebs, Volkswagen Group’s corporate communications director.
The move establishes Florida as Volkswagen’s second-largest vehicle-processing state, behind California.
The company’s vehicles will be distributed from Jacksonville to dealerships in Florida, Georgia, South Carolina, North Carolina, Alabama and Mississippi.
“Florida is becoming a global hub for trade and creating the foundation to support jobs and economic prosperity for Floridians,” said Department of Transportation Secretary Jim Boxold.
In December, American Honda Motor Co. announced it will export Acura vehicles from Jacksonville to the Middle East. Companies at JaxPort also process Toyota, Honda, Nissan, Acura, Ford, General Motors, Mitsubishi and Isuzu vehicles.
Volkswagen and Audi already have a presence in Jacksonville. The company’s 6-year-old distribution facility serves dealers throughout the Southeast. The German company’s U.S. headquarters is in Herndon, Va.
“The investments made by the port were beneficial in helping us realize the importance of Florida,” said David Geanacopoulos, Volkswagen Group’s executive vice president for public affairs and general counsel. “It’s like Jacksonville is a new hometown for us.”