VW reaffirms commitment to expand Chattanooga plant despite spending crackdown
29 October 2015
The Volkswagen Group has reaffirmed its commitment to expanding its Chattanooga facility, where it plans on producing a newly developed midsize SUV for the US market, despite a Group crackdown on spending as the company prepares to deal with the impacts of resolving the diesel emissions scandal.
As previously announced, the Group plans on a total investment of approximately $900 million in the production of a newly developed, seven-passenger SUV. In the state of Tennessee alone, Volkswagen Group anticipates a $600-million investment and creation of 2,000 additional jobs. Production of the new midsize SUV is scheduled to begin in Chattanooga toward the end of 2016.
The United States continues to be one of the most important markets for Volkswagen, and our commitment to Chattanooga and the state of Tennessee is clear proof of that. The Chattanooga plant is a core part of our strategy in North America. Here and throughout the region, we will work toward meeting the demands of our U.S. customers and regaining their trust in the Volkswagen brand.
—Michael Horn, president and CEO, Volkswagen Group of America
In addition to investing in a new manufacturing line for the mid-size SUV, Volkswagen has created a new Engineering and Planning Center in Chattanooga. This center will house all future projects for the North American market through a central location, enabling the company quickly and efficiently to implement market-specific changes to vehicles.
To allow for the production of the new midsize-SUV for North America, the current space at the plant in Chattanooga will be expanded by 50,000 square meters. Production of the new vehicle will be integrated into the current plant structure.
Volkswagen has already invested more than $1 billion in its factory in Tennessee. Currently, more than 2,400 employees work at the plant; this summer, the 500,000th US-built Passat was built.
Does VW make the eGolf or any clean vehicles here?
Posted by: TeslaRedux.co | 29 October 2015 at 01:51 PM