Volkswagen will reportedly invest $900 million in a new plant in Chattanooga, Hamilton County, where it will produce a new midsize SUV for the American market.
The investment means that VW will create approximately 2 000 new jobs, alleviating economic pressures, whilst at the same time paving the way for more investors to the area.
“Volkswagen’s commitment to Hamilton County also means the possibility of more suppliers locating here, creating additional family wage jobs,” said Hamilton County Mayor Jim Coppinger.
Coppinger and Chattanooga Mayor, Andy Berk, are both in Germany along with VW’s chief executive, Martin Winterkom.
Since North America is a key market for the Volkswagen Group, the investments will allow VW to bring more products and advanced production systems to the market.
Part of the reason why Volkswagen will be investing extensively into this new venture, is to counter the lack of sales in the U.S. market. Sales are down 13% from a year ago.
The planned SUV, dubbed the Volkswagen CrossBlue in concept form, could help aid VW’s market presence in the States.
– Charlen Raymond
