Chattanooga, just across the border from North Georgia, further flexed its manufacturing muscle Tuesday with the announcement that a Volkswagen supplier will add 500 jobs.
Gestamp will build a $180 million metal stamping factory alongside Volkswagen’s ever-growing automobile empire in the Enterprise South industrial park east of town. The Spanish parts maker will also expand an existing Chattanooga factory that too will mold metal “skins” for Volkswagen’s new midsize SUV.
The German automaker currently depends upon stamping factories in several states to supply metal parts for the Passat under construction in Chattanooga the past few years. Gestamp’s expansion means most metal stamping will be done locally.
Georgia, and Georgia workers, have largely missed out on the Volkswagen manufacturing surge. The state’s economic development agency recently created a VW supplier initiative to lure suppliers south of the border.
Volkswagen announced a year ago that the Chattanooga plant would also take on production of the SUV. An additional 2,000 jobs, on top of the 2,400 already in place, were promised.
In reference to Gestamp’s expansion, Christian Koch, the president of Volkswagen Chattanooga, said Tuesday, “We have put another crucial pillar into place for our future success, and the benefits of this expansion will impact the community for years to come.”
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