VW Chattanooga plant construction moving ahead

The Volkswagen assembly plant in Chattanooga has been chosen to build a new SUV.
The Volkswagen assembly plant in Chattanooga has been chosen to build a new SUV.

Volkswagen is continuing to move ahead with construction of its Chattanooga plant expansion with a contract for geotechnical inspection slated for approval by a city panel next week.

S&ME is expected to be awarded a $697,000 contract for the work related to the expansion of the plant by the city's Industrial Development Board when it meets Wednesday.

"We are familiar with this project as we previously completed the geotechnical site assessment for the original plant construction...," the company said in documents.

VW last year gave the green light to spend $900 million on expanding the plant to build a midsize SUV based off of the CrossBlue concept that was unveiled in January 2013. The SUV is targeted for assembly at Chattanooga's plant in late 2016.

Also, the Chattanooga plant could receive production of the Cross Coupe GTE revealed this week at the North American International Auto Show if the smaller version of the CrossBlue receives a green light for assembly, officials said.

"The new SUV concept might be perfect for America," said VW Chief Executive Martin Winterkorn.

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