Volkswagen has been in the news a lot lately, but for all the wrong reasons. While the saga regarding the efficiency of their diesel engines has not been settled yet, the German auto giant is looking to keep on track with its growth plans, and as such is going ahead with a massive investment at its production facilities in America. Only time will tell if all this effort will eventually pay off.
The automaker released the following statement this past week:
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.
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.”