A top Volkswagen official confirmed today the company is searching for a location in North America for an engine plant to service its new Chattanooga factory and operations in Mexico.
Jochem Heizmann, a VW board member in charge of group production, said that building a new engine plant in the region is part of its growth strategy for North America.
“The new plant is to supply our factories in Puebla (Mexico) and Chattanooga with the latest generation of engines from 2013,” he said.
Mr. Heizmann said a location isn’t finalized yet.
In April, Hamilton County Mayor Claude Ramsey said it will make a run for a Volkswagen engine plant.
He said Enterprise South industrial park has the space, the county has the work force and state and local governments would compete with other sites concerning financial incentives.
VW is to start making cars at its $1 billion Chattanooga plant early next year.