Spanish auto parts maker Gestamp is expanding operations in Chattanooga with a $180 million investment the company says will triple its capacity in the city and create 550 new jobs.
The investment includes an expansion of Gestamp's existing Chattanooga plant and construction of a new plant on the Volkswagen campus that will produce the sheet metal pieces for the outside of a new seven-passenger SUV currently in development.
Volkswagen Chattanooga President and CEO Christian Koch said at a Tuesday news conference that locating the new stamping plant next to the automaker will save on transportation costs and help the two companies work together to quickly solve problems.
Gestamp President and CEO Francisco Riberas said the investment shows Gestamp is convinced Volkswagen's new SUV will be a success.
