Governor Jennifer Granholm is busily touting several new ventures that she says will create 7,500 jobs — but she’s also admitting defeat in the state’s attempt to bring Volkswagen to Michigan. One lobbying group blames state leaders for the bad roads and deteriorating infrastructure which it says scared VW off.

Granholm’s administration played up a Dow-Kuwait joint venture and tax credits for 13 other companies as proof that Michigan remains attractive for business. But the good news was soured by VW’s decision to go elsewhere.

Volkswagen said it has picked Chattanooga, Tenn., over Michigan and Alabama for its new auto plant. A VW official said the company picked Chattanooga after the board debated the merits of the location and its benefits. Following the VW announcement, Governor Granholm said:

“We aggressively made a case for why Volkswagen should choose Michigan.  Our highly skilled workforce and an unprecedented incentive package capped a full-court press to bring the company’s investment to Michigan. We will continue going anywhere and doing anything to bring jobs to Michigan.”

Continued – While VW did not give any reason for choosing Tennessee over the other states, the Michigan Infrastructure and Transportation Association says one of the reasons is because of Michigan’s failure to fix its roads and bridges. Mike Nystrom, the Vice President of government and public relations for the lobby group said in a statement:

“We are disappointed to hear about Volkswagen’s decision today not to locate in Michigan. It is disheartening to see our state once again lose out on jobs and economic development because of our inadequate infrastructure.

“State policymakers have stood by and done nothing while the state’s road funding system has collapsed and our infrastructure crumbles. Time and time again, economic studies have concluded that infrastructure investment is critical to economic development. The Volkswagen announcement today is just one more example of how Michigan is losing jobs because of inaction from our elected leaders.

“Today’s (Tuesday’s) announcement should serve as a wake-up call to state policymakers. It’s time to act.”