Volkswagen’s plan to build a $1 billion assembly plant has sent expectations for Chattanooga’s economy soaring, with some saying that VW will recession-proof the city and create or spin off 18,000 jobs.

Several business and local government groups are combining their planning for the arrival of Volkswagen at Enterprise South in Hamilton County.

When Volkswagen builds its first car in Chattanooga in 2011, some of the road work at Interstate 75’s nearby Exit 11 may be ongoing — years after federal budget constraints snarled progress there, according to state transportation officials.

Local money to prepare Enterprise South industrial park for Volkswagen could reach up to $80 million before the plant even is built, but officials say the investment is worth it.

When Volkswagen of America CEO Stefan Jacoby announced that his company would be building its assembly plant in Chattanooga, the roar from the crowd was so loud he simply said, “Wow.”

Looking across the dusty expanse that will soon be home to Volkswagen’s new U.S. assembly plant, U.S. Sen. Lamar Alexander, R-Tenn., sees much more than an auto factory.

Local officials hope a future billboard welcoming Volkswagen will have the same success as an earlier Chattanooga sign aimed at plastics companies.

The Chattanooga City Council approved a request Tuesday night to fund up to $40 million in improvements to Enterprise South industrial park, soon to be home of the new Volkswagen plant, even as some council members questioned the move.

Volkswagen has named the manager of one of the biggest axle manufacturing facilities in the world under one roof as the plant manager of its planned Chattanooga site.

When Volkswagen’s Chattanooga campus opens in two years, it will take up about 1,350 acres of space at Enterprise South industrial park and dwarf other industrial sites in the city.

Volkswagen’s choice of Enterprise South for its U.S. assembly plant has launched accelerated planning here from local government to the Chamber of Commerce and real estate developers.

North Georgia officials, seeking to attract Volkswagen suppliers, are eyeing a foray to Germany to meet with prospects that could open new plants here.

Volkswagen’s decision to build its U.S. design and production facility in Chattanooga is expected to have broad-reaching effects on the tri-state economy.

With a circular saw and a Volkswagen, Larry Lovelady can do interesting things.

As construction machinery roared behind him at Enterprise South, Hamilton County Mayor Claude Ramsey said Monday that officials must find a way to get the county’s students excited about education or risk leaving them behind.