Volkswagen And Gestamp Partnership Expansion

Jun 30, 2015

Just recently Volkswagen Group of America, Chattanooga Operations LLC, and Gestamp, announced that they plan to expand their partnership. Gestamp, the metal components and parts manufacturer, and Volkswagen plan to bring over 500 jobs to the Chattanooga area with their partnership expansion.

Included in the new expansion will be the building of a new stamping plant in Enterprise South to aid the stamping process of Class A parts, and the expansion of their current Chattanooga facility as well. Gestamp is putting $180 million into the partnership expansion that’ll make its Chattanooga capacity three times larger than it is now.

“The importance of this expanded partnership for Volkswagen and Chattanooga cannot be overstated,” said Christian Koch, President and CEO of Volkswagen Chattanooga. “I am grateful for the hard work of Gov. Haslam and Commissioner Boyd, and Senator Corker as well. They all worked tirelessly to make the impossible happen. We have put another crucial pillar into place for our future success and the benefits of this expansion will impact the community for years to come,” Koch said.

At this point, Volkswagen uses press shops in various states for their stamped metal parts used in Chattanooga. Consolidating the process in Chattanooga and Enterprise South will allow Volkswagen to cut back significantly on transportation costs.