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Volkswagen America invests $900 million in Tennessee

Staff writer |
Volkswagen Group of America will expand its sole U.S. manufacturing facility in Chattanooga, Tennessee. Volkswagen will add an additional manufacturing line and create the National Research & Development and Planning Center.

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Volkswagen's total global investment for the expansion will be $900 million, with $600 million invested in Tennessee and 2,000 new jobs being created in Hamilton County.

The expanded plant in the Enterprise South Industrial Park will manufacture a new automotive line, a midsize SUV for the American market. Production of the new SUV will begin in the fourth quarter of 2016 with the first vehicle expected to roll off the new assembly line by the end of 2016. The expansion will also create the National Research & Development and Planning Center of the Volkswagen Group of America.

The state of Tennessee is providing a $165.8 million grant for costs associated with site development and preparation, infrastructure, production equipment acquisition and installation, and facility construction. In addition, the state will provide a $12 million grant for training new employees.

As part of the incentive package, Volkswagen Group of America has agreed to waive its right to claim certain statutorily available tax credits directly related to the expansion.

Volkswagen Chattanooga currently employs 2,500 people. Hiring for new production positions will occur closer to the launch of the new product. The details of that application and assessment process will be announced at that time.


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