Chattanooga, Tenn., is the announced site of a new auto assembly plant to be built by Volkswagen Group of America Inc., Herndon, Va.
According to Volkswagen, “it will produce a car designed specifically for the North American consumer” and invest $1 billion in the facility. The assembly plant is Volkswagen’s first in the United States since the company shuttered a plant in Pennsylvania in 1988.
The construction and operation of the facility and anticipated supplier plants will likely provide a boost to the scrap recycling sector in Chattanooga and surrounding areas in southeastern Tennessee and north Georgia.
The facility will be built in the Enterprise South Industrial Park, located 12 miles northeast of downtown Chattanooga. The 1,350-acre site near I-75 is owned by the city of Chattanooga and Hamilton County, Tenn.
Initial production capacity for the facility is anticipated to be 150,000 vehicles, including a new mid-size sedan designed specifically for the North American market. Production is scheduled to begin in early 2011.
“This project will have a significant impact on the economy of Tennessee and the region for decades to come,” says Tennessee Gov. Phil Bredesen.
“Volkswagen and Chattanooga have a lot in common,” says Chattanooga mayor Ron Littlefield. “Both are serious about environmental sustainability and 21st century manufacturing.”
It is anticipated that Volkswagen will bring about 2,000 direct jobs to the area, and the company and its suppliers are likely to “add a significant number of jobs in related sectors,” according to a company news release.