Chattanooga will be home to Volkswagen's first electric vehicle manufacturing facility in North America

Volkswagen to add 1,000 jobs, second facility with $800 million investment

An announcement of an $800 million expansion at Chattanooga's Volkswagen plant brought out top officials on Monday in Detroit. From left are Chattanooga Mayor Andy Berke, Tennessee Gov. Bill Haslam, VW Group CEO Herbert Diess, Volkswagen Group of America CEO Scott Keogh, Tennessee Gov.-elect Bill Lee, and Hamilton County Mayor Jim Coppinger. (Staff photo by Mike Pare)

DETROIT - As Volkswagen speeds ahead with an electric vehicle plant in Chattanooga - investing $800 million and hiring 1,000 workers - growing its supplier base is seen as a key plus.

Herbert Diess, Volkswagen's chief executive, said Monday there will be "many more suppliers" coming to service the new facility - Volkswagen's first electric vehicle manufacturing facility in North America - slated to go next to Chattanooga's existing production plant.

Diess said at the North American International Auto Show that the United States is the second-largest market after China for electric vehicles, and the new production and technology is expected to lead to more growth in the Chattanooga automotive supplier base.

"Volkswagen is 100 percent committed to the United States," he said about the company that employs about 3,500 people in Chattanooga.

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