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NINETY EIGHT REGENCY

Volkswagen hopes to add engine plant to new facility in Tenn.

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Volkswagen hopes to add engine plant to new facility in Tenn.

Alisa Priddle / The Detroit News

Traverse City -- Volkswagen AG will have an announcement by the end of the year on adding an engine plant in Chattanooga, Tennessee where it is building a new assembly plant.

Thomas Loafman, director of purchasing for Volkswagen Group of America, gave the update Tuesday at the Management Briefing Seminars here.

Volkswagen's $1 billion plant in Chattanooga will be in operation next year and will assemble a new midsize sedan. It now has about 900 employees and plans to add about 1,100 more. The automaker has said it would like to have an engine plant as well.

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Loafman said the automaker also continues to study whether the new U.S. plant will build Audi brand vehicles.

From The Detroit News: http://detnews.com/article/20100803/AUTO01/8030429/1148/auto01/Volkswagen-hopes-to-add-engine-plant-to-new-facility-in-Tenn.#ixzz0vaIBxWmY

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