Volkswagen Reaffirms Plans to Invest in Chattanooga Plant

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Volkswagen Reaffirms Plans to Invest in Chattanooga Plant

Volkswagen is still planning on investing $900 million into its plant in Chattanooga, Tennessee.

In light of the recent news that the German automaker lost nearly $2 billion due to its diesel scandal last quarter, the Volkswagen Group has reaffirmed its commitment to expanding its Chattanooga facility while moving forward with producing a new midsize SUV for the U.S. market. The total investment will be around $900 million to setup production of the seven-seater SUV and Volkswagen expects to invest $600 million in the state of Tennessee alone as part of the expansion. In addition, the new production will add 2,000 new jobs to the plant when production begins at the end of next year.

SEE ALSO: Volkswagen Group Lost Tons of Money Last Quarter

Along with the investment to add a new manufacturing line, Volkswagen will also create a new Engineering and Planning Center in Chattanooga. That center will be home to all future projects for the North American market, giving the automaker a central location to quickly and efficiently implement market-specific changes to its vehicles.

The Chattanooga expansion will increase the current space of the plant by 50,000 square meters.

“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,” said Michael Horn, president and CEO, Volkswagen Group of America. “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.”

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  • johnls39 .

    Inspite of the diesel mess, I am glad that VW is making a 3 row crossover.