While the Chattanooga area has landed more Volkswagen suppliers in recent weeks, many parts for the new car to be produced here will come from the Midwest and Mexico.
The Midwest, especially Michigan, is still a traditional home to auto suppliers, while VW has had a network in Mexico for decades.
Michigan remains the heart of the American auto industry, said Guenther Scherelis, VW's general manager for communications in Chattanooga.
Meanwhile, VW has been in Mexico since 1964 and its Puebla plant makes about 500,000 vehicles a year, he said.
"Around Puebla is the heart of the Mexican auto industry," Mr. Scherelis said.
VW declined to say for competitive reasons how many suppliers for the new midsize sedan will end up located in these areas. But, VW data released in October showed about 42 suppliers in Mexico, 30 here and 25 companies in the Midwest.
Mr. Scherelis said the German automaker has markedly increased its number of suppliers within 300 miles of Chattanooga over the past year or so.
"New companies are coming to town," he added. Last month, VW identified the first five tenants of its new supplier park that will be adjacent to its plant at Enterprise South industrial park where production is to start early next year.
Along with two other companies VW plans to bring into the park soon, the seven businesses are expected to create about 500 jobs.
J.Ed. Marston, the Chattanooga Area Chamber of Commerce's vice president for marketing, said more than 2,800 jobs related to VW and its suppliers in Hamilton County have been created or are in the works.
VW-RELATED JOB CREATIONThe number of workers expected to be hired as part of the VW industrial complex:* Volkswagen -- 2,000* Gestamp -- 230* Chattanooga Seating -- 140* Honigsberg & Duvel -- 100* ThyssenKrupp -- 90* Wallenius Wilhelmsen Logistics -- 80* Security by Design -- 40* M-Tek -- 40* Faurecia -- 35* Montara & Mueller -- 30* Magna -- 25
"I do expect more announcements," he said, citing an improving economic climate and banks making more loans.
Ann Wilson, the Motor & Equipment Manufacturers Association's senior vice president of government affairs, said the industry has stabilized after the automotive meltdown two years ago.
"Production picking up has been important," she said.
Ms. Wilson said the South's growing prominence in the auto industry means more suppliers will move to the region.
"With just-in-time delivery and a need to be closer, they'll move wherever vehicles are made," she said. Ms. Wilson said Tennessee already is a major supplier manufacturing state.
Mr. Scherelis said VW's aim is for 80 percent of vehicle parts to come from North America.
"Our goal is to have as much parts locally sourced as possible," he said.