Construction is underway to add a mass expansion to the Volkswagen Chattanooga manufacturing facility which has been designed to accommodate the production of a new mid-SUV. In addition to the mass expansion, a new North American Engineering and Planning Center is being opened in the area. A new study from the University of Tennessee Center of Business and Economic Research (CBER) has estimated that the projects will add an additional $375 million in income to the area through the creation of around 9,800 jobs.
The construction to these expansions began back toward the beginning of the year and Volkswagen expects the project to be completed by the end of next summer, production of the new mid-size SUV will begin by the end of 2016.
“The findings in the CBER study demonstrate that the incentive package recently passed by the Tennessee legislature will result in an economic growth multiplier of several times the state’s investment,” said David Geanacopoulos, Executive Vice President for Public Affairs and General Counsel, Volkswagen Group of America, Inc. “We would like to thank Gov. Bill Haslam and Economic and Community Development Commissioner Randy Boyd for their leadership in fostering a business environment within Tennessee that is mutually-beneficial for the state and local economy as well as for companies like Volkswagen that have operations in the state.”
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