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VW Adds to Plant Expansion in Chattanooga

Volkswagen AG is preparing its assembly plant in Chattanooga, Tenn., for future products beyond the midsize SUV it will add there next year.

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Volkswagen AG is preparing its assembly plant in Chattanooga, Tenn., for future products beyond the midsize SUV it will add there next year.

The Tennessee plant is adding another 130,200 sq ft of floorspace to the 512,900 sq-ft expansion it announced late last year, the Chattanooga Times Free Press reports.

VW began the first expansion in January to prepare the factory for a new midsize SUV that launches in 2016. City documents show the additional $18 million expansion will add 21 more 80x80-foot body shop bays to the 14 being installed for the SUV.

The new expansion is to be substantially complete by Oct. 15, the Times Free Press says.

VW hasn't confirmed specific new vehicle programs for the Chattanooga facility. But the company says it intends to expand its U.S. lineup to jumpstart sales that fell 10% in 2014 and sagged 9% through the past three months.

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