VW reaffirms Chattanooga expansion

October 29, 2015 at 2:03 p.m. | Updated October 29, 2015 at 2:03 p.m.

by Mike Pare

In this Oct. 5, 2015 file photo the VW sign of Germany's car company Volkswagen is displayed at the building of a company's retailer in, Berlin, Germany. Germany's motor transport agency is ordering a mandatory recall of Volkswagen cars sold with software that enabled them to evade diesel emissions testing, as it was announced Thursday, Oct. 15, 2015. (AP Photo/Markus Schreiber, file)
In this Oct. 5, 2015 file photo the VW sign of Germany's car company Volkswagen is displayed at the building of a company's retailer in, Berlin, Germany. Germany's motor transport agency is ordering a mandatory recall of Volkswagen cars sold with software that enabled them to evade diesel emissions testing, as it was announced Thursday, Oct. 15, 2015. (AP Photo/Markus Schreiber, file)
photo VW Crossblue SUV

The Volkswagen Group today reaffirmed its commitment to expanding its Chattanooga plant, where it plans on producing a newly developed midsize SUV for the U.S. market.

"Today, we reaffirm our support of the Chattanooga plant, our employees and the broader community," said Christian Koch, president and CEO of Volkswagen Chattanooga, in a statement. "We know we have a lot of hard work ahead of us, but this is a crucial moment in our efforts to deepen our commitment to America."

photo Christian Koch heads Volkswagen's operations in Chattanooga. He is shown outside of the factory where a $900 million expansion is underway.

Koch made the announcement prior to a 1:30 p.m. state Senate legislative hearing at the Hamilton County Department of Education offices off Hickory Valley Road. State legislators, including Sen. Bo Watson, R-Hixson, are expected to seek assurances related to state incentives which the General Assembly approved for the plant expansion.

As previously announced, the VW Group plans on a total investment of approximately $900 million in the production of a newly developed, seven-passenger SUV. In Tennessee, Volkswagen Group anticipates a $600 million investment and creation of 2,000 additional jobs.

Production of the new midsize SUV is scheduled to begin in Chattanooga toward the end of 2016.

"The United States continues to be one of the most important markets for Volkswagen, and our commitment to Chattanooga and the state of Tennessee is clear proof of that," said Michael Horn, CEO of Volkswagen Group of America. "The Chattanooga plant is a core part of our strategy in North America. Here and throughout the region, we will work toward meeting the demands of our U.S. customers and regaining their trust in the Volkswagen brand."

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