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Volkswagen may get another six months to mull land acquisition

Staff photo by Matt Hamilton / Property at the intersection of Old Hickory Valley Road and Engineering Drive Is pictured. The city of Chattanooga may grant Volkswagen an extra six months to decide whether it wants to purchase the property adjacent to its plant.
Staff photo by Matt Hamilton / Property at the intersection of Old Hickory Valley Road and Engineering Drive Is pictured. The city of Chattanooga may grant Volkswagen an extra six months to decide whether it wants to purchase the property adjacent to its plant. Staff photo by Matt Hamilton / Property at the intersection of Old Hickory Valley Road and Engineering Drive Is pictured. The city of Chattanooga may grant Volkswagen an extra six months to decide whether it wants to purchase the property adjacent to its plant.

By David Floyd 5 min read

Volkswagen may be given more time to decide if it will acquire hundreds of acres of land adjacent to its plant in Chattanooga.

The Chattanooga City Council will take up a resolution Tuesday extending the company’s option on property west of its facility by six months, bringing the deadline to January 2027. The parcel sits near Old Hickory Valley Road.

“The option area was originally designated for the future expansion of Volkswagen and its associated suppliers,” Charita Allen, the city’s senior adviser for economic and workforce development, said by email. “As is common with large-scale manufacturing facilities, this land was set aside to ensure adequate space for industrial growth and logistical support.”

(READ MORE: ID.4 sales slump as VW halts production in Chattanooga)

According to VW, there’s a variety of factors at play that have required all parties — the city, county, state and VW itself — to seek more time to consider a potential transfer.