New Volkswagon Plant in Chattanooga Anounced

Volkswagen AG will build its first United States assembly plant in Chattanooga, reports said today.

Europe’s biggest automaker said it will put a nearly $1 billion investment in Chattanooga’s Enterprise South Industrial Park.

The new plant is expected to eventually create 2,000 jobs.

Volkswagen officials said the surging euro has pushed plans for a production facility forward. The 15-nation currency has been hitting record highs in recent weeks against the U.S. dollar, making goods exported from Germany more expensive in the United States.

Volkswagen recently moved its North American headquarters from suburban Detroit to Herndon, Va., outside Washington, to bring it closer to its East Coast customer base.

Volkswagen produces VW cars and trucks and also makes vehicles under the Audi, Skoda, Seat, Lamborghini, Bentley and Bugatti names.