Volkswagen Group of America will build a production facility in Chattanooga, Tennessee, where it will produce a new model specifically designed for North American consumers. The company will invest approximately $1 billion in the project, which is expected to bring more than 2,000 jobs to the area. The company will build the new facility on a 1,350-acre site in an industrial park 12 miles northeast of downtown Chattanooga. Initial production capacity is expected to be 150,000 vehicles, beginning in early 2011. "Chattanooga is an excellent fit for the Volkswagen culture, having an exceptional quality of life and a long manufacturing tradition," says Stefan Jacoby, president and CEO of Volkswagen Group of America. The company describes the incentives offered by state and local economic development agencies as "an attractive, comprehensive package" that is tied to job creation and capital investment, with support for public infrastructure and job training. No financial details about the package have been released. Alabama and Michigan were finalists with Tennessee in Volkswagen's decision on where to build the new facility.
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