Volkswagen to invest $340mn in Tennessee facility
The Volkswagen Group (VW) has announced that it will be adding a third vehicle to its Chattanooga, Tennessee production plant, with a $340mn investment being pledged to the facility in support of this.
The new vehicle will be a five-seater sports utility vehicle (SUV), with the company looking to capitalize on the growth in the US SUV market in recent times.
The SUV will become part of the company’s Atlas brand, with a concept version of the vehicle set to be unveiled at the New York International Auto Show taking place at the Jacob Javits Convention Center next week.
“The Atlas has built strong momentum for Volkswagen in the SUV segment, and we are excited to grow our SUV portfolio with this new, Chattanooga-assembled five-passenger SUV,” said Volkswagen US CEO Hinrich Woebcken. “We are not only committed to this market, we are committed to our U.S. manufacturing home in Chattanooga.”
The further $340mn investment will expand on the company’s existing $900mn worth of investments in the Chattanooga assembly plant, bringing a large number of new jobs to the region.
“We value Volkswagen as a committed partner, whose investments in the state have not only created new jobs, but have helped us build a skilled Tennessee workforce,” Tennessee Governor Bill Haslam. “I look forward to watching as VW continues to grow in Tennessee.”