VW expansion, production on track in Chattanooga despite diesel scandal, state officials say

Diesel Volkswagens are seen behind a security fence on a storage lot near a VW dealership in Salt Lake City.

As Volkswagen manages what's termed as the biggest crisis in its history, Tennessee's economic development commissioner says the carmaker's Chattanooga plant expansion is on track.

State Economic and Community Development Commissioner Randy Boyd, in a memo to the General Assembly, said that 50 percent of VW's $930 million investment in the project is already spent or committed.

photo Randy Boyd

The north body shop expansion of the plant is complete, and equipment installation is underway, he said in the memo dated Monday.

Boyd, who personally visited the plant last Wednesday, said other parts of the expansion including the south body shop, assembly warehouse and paint shop are on schedule.

VW has said it wants to start producing a new sport utility vehicle for the U.S.