Volkswagen has chosen Chattanooga, Tennessee as the site of its new $1 billion North American production plant.
The decision, which comes after a lengthy review of over 25 potential sites over the year, has been announced by Volkswagen chairman Martin Winterkorn.
The Tennessee site, settled upon during a management board meeting at Volkswagen’s Wolfsburg based headquarters in Germany yesterday, will go into operation in 2011, creating up to 2000 jobs.
“The US market is an important part of our volume strategy,” said Winterkorn in revealing the identity of the Tennessee site, adding, “Volkswagen will be extremely active there. Volkswagen has set out to quadruple its US sales with a brand building strategy aimed at netting it over 800,000 sales there by 2018 – up from 329,000 in 2007.
The first model to roll out of Volkswagen’s new US manufacturing plant will be a new low cost mid-sized sedan that is being developed specifically for the North American market. It is also likely that Volkswagen could re-establish US production of the Golf in a bid to bolster overall profitability and negate the negative effects of the strong European currency against the American dollar.