A Chattanooga panel today agreed to a $3 million contract to start prepping a tract of land for potential expansion of the Volkswagen auto assembly plant.
Meanwhile, industry publication Automotive News has reiterated that the Chattanooga factory could be in line to produce a sport utility vehicle in the future. Currently, the plant makes the midsize Passat sedan.
The vacant parcel at Enterprise South industrial park sits next to the plant and has been identified as a site where VW could mirror its existing factory footprint, officials said.
The $3 million contract was awarded by the city's Industrial Development Board to Wright Brothers Construction Co. to start flipping dirt which had been piled up next to the plant.
City Engineer Bill Payne said about 1 million cubic yards is expected to be moved to prepare the tract.
VW has said that no plant expansion is imminent, but officials have talked about adding to the factory in the future.
See full story in Wednesday's Times Free Press.