Canadian Manufacturing

Volkswagen expanding Tennessee investment

The company has decided to increase the size of the body shop



CHATTANOOGA, Tenn.—Volkswagen is seeking to add to a planned expansion announced last year to produce a new sport utility vehicle in Tennessee.

The Chattanooga Times Free Press reports documents show the automaker wants to add an additional 130,153 square feet to the original expansion, 25 per cent more than first planned. The additional expansion will add about $18 million to the $900 million project.

VW plant spokesman Scott Wilson said the company has decided to increase the size of the body shop to accommodate future production needs. He said that doing that now will save money and give VW flexibility as it makes changes to the way it assembles vehicles.

VW is scheduled on April 7 to go before a local industrial development board to seek permission for the new expansion proposal.

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