With $1 billion investment into the economy and 2000 direct jobs to the tri-state area, VW plans to build 150,00 vehicles per year, which includes a new midsize sedan designed specifically for the North American market.

VW of America announced today it has selected Chattanooga, Tenn. as the location for its new U.S. production facility, edging out Alabama and Michigan as the other two top competitors. With $1 billion investment into the economy and 2000 direct jobs to the tri-state area, VW plans to build 150,00 vehicles per year, which includes a new midsize sedan designed specifically for the North American market. Such capacity bolsters VW's growth strategy of tripling U.S. sales to a projected 800,000 vehicles by 2018 and brings VW that much closer to its goal of surpassing Toyota's global sales within the next 10 years.

With the value of the U.S. dollar at an all time low, the cost to build cars in America has become attractive for Euro zone manufacturers. Recent reports put other manufacturers such as BMW and Fiat Group in partnership talks for production while other European marques such as PSA Peugeot Citroën consider their options.

Production is scheduled to begin in early 2011.

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VW Announces Chattanooga Plant Facility Location