CHATTANOOGA, Tenn. (AP) -- Five hundred new jobs will be created at Volkswagen's supplier park that will be built alongside the German automaker's new assembly plant in Chattanooga.
The chief executive of VW's Chattanooga operations, Frank Fischer, announced the 500 jobs at a Friday news conference where he said the $1 billion assembly plant and plans to start production of a new mid-sized sedan next year are "completely on track."
He said VW so far has hired about 350 of the projected 2,000 employees at the assembly plant. He said most applicants already hired are from Tennessee and that should continue.
VW has accepted applications for about 1,200 production jobs. Starting pay for those workers will be $14.50 per hour, increasing to $19.50 per hour over three years, in addition to health insurance and other benefits.
"This is another good day when you can announce another 500 jobs coming here," Hamilton County Mayor Claude Ramsey said at the news conference.
Fischer said in announcing the 500 supplier park jobs that there are six suppliers so far. He declined to identify them or to give a timetable for the hirings.
Fischer also declined to say when the new mid-sized sedan will be shown.
Automotive supplier Gestamp Corp., last year announced plans to create at least 230 jobs at a new, $90 million automotive parts stamping operation at the industrial park. Gestamp received a contract to supply structural components for the planned car.
Fischer said the VW plant is expected to create more than 9,000 spin-off jobs in the region.