Magna-Hollingsworth JV to Supply Chattanooga
"This partnership is a great sign of things to come for everyone involved," Frank Fischer, Volkswagen Chattanooga CEO said.
"We are pleased that a minority-owned joint venture will be a part of our supplier team for the all-new mid-size sedan and that the addition of 120 jobs will continue to strengthen the economy here in the Tennessee Valley."
The JV is 51 percent owned by Hollingsworth and 49 percent by Magna. Called Chattanooga Seating Systems, the new company will be a minority supplier to Volkswagen.
"This joint venture strategically positions both companies for continued growth in North America," said Joe Pittel, president of Magna Seating. "We look forward to working together with Hollingsworth, leveraging each other's strengths and delivering innovative seating solutions to Volkswagen."
Volkswagen's new plant in Chattanooga will officially open its doors in 2011 and will employ around 2,000 workers. The factory will be responsible for manufacturing a brand new model, especially designed for the North American market, with a production goal of 150,000 vehicles per year, with 30 percent of them to be powered by VW's TDI Clean Diesel Technology.