According to a report published today in The Chattanoogan , Chinese interior manufacturer Yanfeng Automotive Interior has announced that they will open a new facility in Chattanooga, Tennessee which will create 325 jobs by the time it opens in 2016.  The new facility represents an investment of $55M, which aims to support Volkswagen by manufacturing interior components near their Chattanooga plant specifically for the Passat and upcoming mid-size SUV.

The move is not only one which adds a bit of convenience to the manufacturing process, though.  This proximity will help to keep Volkswagen's costs competitive, and allow the companies to greatly expand their quality control measures.  Referring to Yanfeng's new location, Volkswagen Chattanooga's president and CEO Christian Koch said that it "puts in place a crucial pillar of Volkswagen's growth strategy for our next phase of development."  With statements like that, we wouldn't be surprised to see more of Volkswagen's suppliers lured to southern Tennessee.

Read the full article, here .