Matthias Erb
Volkswagen plans to start a new engineering and planning center in Chattanooga this year and hiring is started, according to VW officials. The facility will be the first of its kind in the southern U.S.
Dr. Matthias Erb of Volkswagen said
Monday that most auto research facilities are located in the northern U.S. Volkswagen's research and development for the U.S. market had previously been in Wolfsburg, Germany.
The new Chattanooga VW facility will be a central location for VW research and development in the North American region.
It is expected to create approximately 130 jobs in the first phase, which runs through 2017. The center will initially be located in an existing building on Discovery Drive.
During the first phase the facility will provide engineering support for the Passat and mid-size SUV. In the second phase, beginning in 2017, engineering support will expand to include the company's modular production strategy. The second phase will add about 30 jobs.
Mr. Erb said the new midsize SUV does not have a name.