Volkswagen to build supplier park next to Tenn. plant

VW plans to source more than $300M from Tennessee suppliers

Dave Hannon -- Purchasing, 2/5/2010 2:59:55 PM

Volkswagen announced it is starting work on a supplier park in Chattanooga, Tenn. where six suppliers will produce parts to be sent to VW's adjacent assembly plant due to go into production early next year.

The new Tennessee site is part of a drive to triple the number of Volkswagen brand vehicles sold in the United States to 800,000 by 2018.Frank Fischer, president of the plant, said work will start on the supplier park soon and it should be ready by June. He said it will feature two buildings that are each over 220,000 square feet. The new $1 billion plant will open in 2011, employing 2,000 workers producing a VW model developed specifically for the North American market.

The plant is designed for an annual capacity of 150,000 vehicles and will source $307 million in components from local Tennessee firms. One of those suppliers is SL America which recently won a contract to make automatic shifter assemblies for the VW plant at Chattanooga and to supply VW production in Mexico. SL's Clinton, Tenn. plant will add 300 jobs in a $35 million expansion.