Volkswagen AG to add 130,000 sq. ft. to expansion in Tennessee

Volkswagen AG, Wolfsburg, Germany, has announced plans to add a 130,000-sq.-ft. body shop expansion to its $900 million factory expansion in Chattanooga, Tenn. The additional expansion will add $18 million to the cost of the project.

The company expects the overall expansion to add 2,000 jobs and allow the firm to double its U.S. sales to 800,000 vehicles by 2018. Production at the plant, which builds the Passat and a new crossover vehicle, is expected to start in late 2016.