Volkswagen’s Chattanooga Expansion Under Way

Volkswagen launches expansion of its Chattanooga, TN, assembly plant to accommodate production of the all-new CrossBlue midsize SUV starting in late 2016.

The $600 million project will bring 2,000 new jobs to the 2,400-worker plant, which already builds the Passat sedan, WardsAuto reported earlier. The 7-passenger CrossBlue will share the automaker’s MQB modular architecture with the Passat, which is receiving a facelift at midyear.

A total of 512,886-sq.-ft. (47,650-sq.-m) will be added to the existing plant. The assembly, body and paint shops each will undergo a major expansion to accommodate the new SUV line, VW says in a news release.

The body shop will add space on the north and south sides of the plant, the assembly shop will expand to the west and the paint shop will add a complete second automated production line. A new warehouse also will be built at the east side of the plant.

The automaker’s National Engineering and Planning Center will temporarily occupy a building adjacent to the factory, as VW has begun hiring what will be an engineering staff of more than 200. The center will serve as an R&D hub and will house product-related functions such as technical scouting, innovation management, and product management.

Also in the planning stages is the Volkswagen Visitor Center, which will be located in downtown Chattanooga, 18 miles (29 km) from the plant, and is set to open in summer 2016.

The 2,000 new hires could affect the balance of power between two rival groups of workers at the plant. The UAW claims it has support from at least 45% of the workforce but has not won collective-bargaining rights. The anti-UAW American Council of Employees is endorsed by 15% of the plant’s hourly and salaried workers but it also lacks collective-bargaining authority.