BERLIN (Reuters) - Spanish automotive supplier Gestamp is planning to open a new pressing facility to supply Volkswagen’s (VOWG_p.DE) production in Chattanooga, Tennessee, a source familiar with the matter told Reuters.
The move will create 500 jobs, the source added, asking to remain anonymous.
Volkswagen declined to comment, only referring to an invitation to a press conference in Chattanooga on June 23 to announce what it described as a “major economic development”.
Gestamp was not immediately available for comment.
The Wall Street Journal had earlier reported the plans by Gestamp.
Volkswagen last year said it would spend $900 million to build a mid-sized SUV at its U.S. plant in Chattanooga, Tennessee, nearly doubling the factory’s workforce, in an effort to revitalize sales in the world’s second-largest auto market.
Reporting by Andreas Cremer; Additional reporting by Julien Toyer in Madrid, editing by Louise Heavens; Writing by Christoph Steitz; Editing by Georgina Prodhan