Volkswagen To Open New $1 Billion U.S. Production Facility

In July 2008, Volkswagen Group of America announced plans to build a new automotive production facility in Chattanooga, Tennessee. The plant was the first American plant for the company since the 1980s. Volkswagen Group of America planned to invest about $1 billion and create 2,000 jobs in the Chattanooga region. The plant was expected to have an annual production capacity of 150,000 vehicles and include production of a new mid-sized sedan designed specifically for the U.S. market.   

"The U.S. market is an important part of our volume strategy, and we are now very resolutely accessing that market... Volkswagen will be extremely active there. This plant represents a milestone in Volkswagen's growth strategy.”

-- Martin Winterkorn, CEO of Volkswagen AG

The Chattanooga facility aligns with the company’s overall U.S. strategy of connecting with its customers, increasing its competitiveness and tripling its U.S. customer base in the next decade.