Volkswagen taps Tennessee for new US production site

FRANKFURT, Germany (AP) -- German automaker Volkswagen AG confirmed it has chosen Chattanooga as the site for its new U.S. plant.

The decision was first announced on Tuesday by a member of VW's supervisory board and followed by a company statement, saying VW approved more than $990 million dollars to build the plant, which will begin production in 2011.

The company said it plans to hire 2,000 workers to build a projected 150,000 cars per year.

The company holds only a 2 percent share of the U.S. market. VW officials have said the company intends to more than triple its U.S. sales to 1 million by 2018.

Board member Christian Wulff said the Chattanooga plant, in addition to VW factories in India and Russia, is part of the company's strategy to become the world's No. 2 automaker.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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