Magna building two Chattanooga plants to supply Volkswagen

Auto parts supplier Magna International Inc., of Aurora, Ont., plans to build two manufacturing plants in Chattanooga, Tenn., to supply seats, bumper fascia and other trim to Volkswagen AG’s new facility in that city.

The components and systems will be used in Volkswagen’s new mid-size sedan, which is estimated to enter production for the U.S. market in 2011.

Both the seat assembly facility and the fascia assembly plant will be located within a supplier park Volkswagen is constructing adjacent to its new Chattanooga assembly facility.

According to a Magna press release, with its two operations in the supplier park, the company will have created approximately 140 jobs once the two plants reach full production next year.

Magna said earlier this month that it had formed a joint venture with industrial-supply chain management firm Hollingsworth Logistics to supply Volkswagen with complete seat systems in Chattanooga.