A worker checks the quality of a wheel housing die at the Gestamp plant in Chattanooga.The chief executive of Volkswagen parts supplier Gestamp said today the company plans to expand its existing plant in Chattanooga and construct a separate factory.
Francisco Riberas, Gestamp's chief, said the facilities will support the production of a new VW SUV in Chattanooga.
He said the company will introduce a new process in the United States for the first time.
According to a VW press release, Gestamp will produce external metals skin for the new mid-size SUV. The company will invest $180 million in the project that triples its capacity in Chattanooga.
Tennessee Governor Bill Haslam and U.S. Senator Bob Corker were on hand for the announcement.