Volkswagen, Gestamp expand partnership in Tennessee

Tennessee-based Volkswagen Chattanooga and Gestamp, a company that designs, develops, and manufactures metal components and assemblies for the automotive sector, have announced plans to expand Gestamp’s existing Chattanooga facility and build a new facility to accommodate stamping of Class A parts, including external metals skin for a new midsize SUV.

Gestamp will invest $180 million in the project, which triples its capacity in Chattanooga. The expansion is expected to create 500 new jobs. Gestamp Chattanooga will offer hot-stamping technology for the first time.

Currently Volkswagen uses press shops in several states to provide all the stamped metal parts for the Passat®, built in its Chattanooga facility. This new, expanded partnership will allow all of the external sheet metal stamping and a majority of the structural parts to occur in Chattanooga, reducing the cost of transportation.