A metal parts supplier will add more than 500 jobs in an expansion of its Chattanooga, Tenn. operation fueled by the nearby VolkswagenParts assembly plant.
Gestamp, which already supplies Volkswagen's Chattanooga factory, will expand its current operation and construct a new facility in Chattanooga.
Volkswagen said Gestamp is investing $180 million to triple its production capacity. The automaker swapped 59 acres of land with the city of Chattanooga and the county -- property that will be used for the Gestamp expansion -- in exchange for land of similar value.
The supplier is getting new business from two sources: a new sport-utility vehicle planned for the Volkswagen plan and the automaker's consolidation of stamping suppliers currently scattered throughout several states.
By moving stamping operations closer to Chattanooga, Volkswagen will save on transportation costs, a classic example of supply chain cost savings that appeals to auto companies.
The new supplier jobs come as politicians, labor leaders and union opponents remain focused on the economic ripple effects of the Volkswagen plant, where the United Auto Workers union has been seeking a foothold for years.
In 2014, the UAW lost an election seeking to organize the workers at the factory. Earlier this year, the union announced that it has the support of 55% of the hourly workforce to form a local chapter, but that has not yet happened.
Any sign of economic vitality emanating from the Volkswagen assembly plant is bound to affect the debate over whether the factory is better off with or without a union.
Volkswagen noted in a press release that U.S. Sen. Bob Corker and Tennessee Gov. Bill Haslam, Republicans who fiercely opposed the UAW's campaign, "worked tirelessly" to aid Gestamp's expansion.
Gestamp said its newly expanded operation would have so-called hot-stamping technology, making metal lighter but harder and reducing climate-change-causing carbon emissions.
"Chattanooga is now a key component in Gestamp's strategic growth roadmap in North America," Gestamp CEO Francisco J. Riberas said in a statement.
Source: USATODAY
Gestamp, which already supplies Volkswagen's Chattanooga factory, will expand its current operation and construct a new facility in Chattanooga.
Volkswagen said Gestamp is investing $180 million to triple its production capacity. The automaker swapped 59 acres of land with the city of Chattanooga and the county -- property that will be used for the Gestamp expansion -- in exchange for land of similar value.
The supplier is getting new business from two sources: a new sport-utility vehicle planned for the Volkswagen plan and the automaker's consolidation of stamping suppliers currently scattered throughout several states.
By moving stamping operations closer to Chattanooga, Volkswagen will save on transportation costs, a classic example of supply chain cost savings that appeals to auto companies.
The new supplier jobs come as politicians, labor leaders and union opponents remain focused on the economic ripple effects of the Volkswagen plant, where the United Auto Workers union has been seeking a foothold for years.
In 2014, the UAW lost an election seeking to organize the workers at the factory. Earlier this year, the union announced that it has the support of 55% of the hourly workforce to form a local chapter, but that has not yet happened.
Any sign of economic vitality emanating from the Volkswagen assembly plant is bound to affect the debate over whether the factory is better off with or without a union.
Volkswagen noted in a press release that U.S. Sen. Bob Corker and Tennessee Gov. Bill Haslam, Republicans who fiercely opposed the UAW's campaign, "worked tirelessly" to aid Gestamp's expansion.
Gestamp said its newly expanded operation would have so-called hot-stamping technology, making metal lighter but harder and reducing climate-change-causing carbon emissions.
"Chattanooga is now a key component in Gestamp's strategic growth roadmap in North America," Gestamp CEO Francisco J. Riberas said in a statement.
Source: USATODAY
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