Volkswagen reaffirms investment plans in Chattanooga

Oct 29, 2015

-U.S. remains one of the most important markets for Volkswagen-

Chattanooga, Tenn./Wolfsburg, Germany, October 29, 2015 – The Volkswagen Group has reaffirmed its commitment to expanding its Chattanooga facility, where it plans on producing a newly developed midsize SUV for the U.S. market. As previously announced, the Group plans on a total investment of approximately $900 million in the production of a newly developed, seven-passenger SUV. In the state of Tennessee alone, Volkswagen Group anticipates a $600 million investment and creation of 2,000 additional jobs.  Production of the new midsize SUV is scheduled to begin in Chattanooga toward the end of 2016.

“The United States continues to be one of the most important markets for Volkswagen, and our commitment to Chattanooga and the state of Tennessee is clear proof of that,” said Michael Horn, president and CEO, Volkswagen Group of America. “The Chattanooga plant is a core part of our strategy in North America. Here and throughout the region, we will work toward meeting the demands of our U.S. customers and regaining their trust in the Volkswagen brand.”

In addition to investing in a new manufacturing line for the mid-size SUV, Volkswagen has created a new Engineering and Planning Center in Chattanooga. This center will house all future projects for the North American market through a central location, enabling the company to quickly and efficiently implement market-specific changes to vehicles.

“Today, we reaffirm our support of the Chattanooga plant, our employees and the broader community,” said Christian Koch, president and CEO, Volkswagen Chattanooga. “We know we have a lot of hard work ahead of us, but this is a crucial moment in our efforts to deepen our commitment to America.”

To allow for the production of the new midsize-SUV for North America, the current space at the plant in Chattanooga will be expanded by 50,000 square meters. Production of the new vehicle will be integrated into the current plant structure.

Volkswagen has already invested more than U.S. $1 billion in its factory in Tennessee. Currently, more than 2,400 employees work at the plant; this summer, the 500,000th U.S.-built Passat was built.

About Volkswagen of America, Inc.
Founded in 1955, Volkswagen of America, Inc., an operating unit of Volkswagen Group of America, Inc. (VWoA) is headquartered in Herndon, Virginia. It is a subsidiary of Volkswagen AG, headquartered in Wolfsburg, Germany. VWoA’s operations in the United States include research and development, parts and vehicle processing, parts distribution centers, sales, marketing and service offices, financial service centers, and its state -of-the- art manufacturing facility in Chattanooga, Tennessee. The Volkswagen Group is one of the world's largest producers of passenger cars and Europe's largest automaker. VWoA sells the Beetle, Beetle Convertible, CC, Eos, e-Golf, Golf, Golf GTI, Golf R, Golf SportWagen, Jetta, Passat, Tiguan and Touareg vehicles through approximately 652 independent U.S. dealers. Visit Volkswagen of America online at or to learn more.

About Volkswagen Chattanooga
The Volkswagen Group of America Chattanooga Operations, LLC (Volkswagen Chattanooga) manufacturing facility began production in April 2011 and currently builds the Passat sedan, specifically designed for the North American market and winner of the 2012 Motor Trend Magazine Car of the Year award.  Volkswagen Chattanooga was the first car factory worldwide with a LEED Platinum certification. It is also certified to international standards for energy management (ISO 50001), environmental management (ISO 14001) and quality management (ISO 9001).

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