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VW expanding in Chattanooga, hiring workers ahead of SUV production

Hey, look! We're writing about Volkswagen's Chattanooga, TN factory and the focus isn't on yet another unionization effort. That's because the big news at the still-new factory is VW's plan to expand and increase its workforce in preparation for the arrival of the German brand's long-awaited midsize crossover. The expansion, which will add over half a million square feet of factory space, overhaul the assembly, body and paint shop and add 2,000 employees to the factory's ranks, officially kicked off last month. "This is a very exciting time in the history of Volkswagen Chattanooga," president and CEO of operations at the plant, Christian Koch, said in a statement. "A lot of hard work is going into adding this second vehicle line to the plant, but it is crucial to our efforts to move forward in America." "Not only will Volkswagen's expansion create thousands of new jobs, it will strengthen their roots in our city," Chattanooga's Mayor, Andy Berke, said in a statement. "From the construction at the plant to the development of a visitors center, there is no doubt that Volkswagen is invested in Chattanooga." VW Chattanooga has been a constant in the headlines over the past few years as pro-union and pro-business interests have battled over the souls representation rights of its roughly 1,500 workers. Just over a year ago, the UAW was defeated in its initial unionization bid, although pro-labor interests have not gone quietly into the night. Construction is expected to continue for two years, with production of Chattanooga's second vehicle expected to commence in 2016. Scroll down for the official press release from Volkswagen. VOLKSWAGEN CHATTANOOGA'S PLANT EXPANSION UNDERWAY Feb 24, 2015 Construction Will Add 2nd Vehicle Line: New Midsize SUV CHATTANOOGA, Tenn. (Feb. 24, 2015) - Construction is underway at the Volkswagen Chattanooga manufacturing facility in preparation for production of an all new Midsize SUV. The first phase of construction started in early January 2015 and will continue for the next two years. Volkswagen Chattanooga CEO and President Christian Koch gave a site tour to Chattanooga Mayor Andy Berke and Hamilton County Mayor Jim Coppinger on Tuesday, highlighting the necessary expansion of the production areas in the body shop, paint shop and assembly areas.

Workers at Mississippi auto supplier protesting low wages

Workers at an automotive seat factory in Mississippi are protesting what they say are low wages and poor working conditions as they attempt to unionize in what could become a new front for the United Auto Workers in the state. A group of workers and supporters at the Faurecia SA seating plant in Cleveland plans a Tuesday march. "We work an auto job and we're getting paid like Wal-Mart wages," said Jamarqus Reed, a 32-year-old Pace resident who has worked at the plant for almost 10 years. "We're trying to better ourselves." Nationally, the UAW has staked its future on unionizing Southern auto factories, with limited success so far. The union has been trying to organize Nissan Motor Co.'s Canton, MS, plant for years, and lost a 2008 worker vote at a Johnson Controls plant in nearby Madison that French-based Faurecia bought in 2011. The UAW narrowly lost a unionization vote at the Volkswagen AG plant in Chattanooga, TN, last year, but the union has since qualified for a new labor policy at the plant that grants access to meeting space and to regular discussions with management. The policy stops short of collective bargaining rights. The union is also trying to organize Nissan's assembly plant in Smyrna, TN, and Daimler AG's Mercedes-Benz plant in Tuscaloosa, AL. Protesters say Faurecia employees make a top wage of $11.64 per hour, while contract workers make $7.73 an hour. Company spokesman Tony Sapienza said that with overtime, the typical Faurecia employee makes more than the $27,000 a year that is the median wage around Cleveland. Wages are often low in the heavily impoverished Delta. "We are very confident that we are offering a very competitive wage," Sapienza said. Organizers criticize use of lower-paid contract workers Shannon Greenidge, a 44-year-old Cleveland resident, said she worked for a labor agency for more than two years before being hired directly by Faurecia. Greenidge said she makes $9.29 an hour, and can't save for retirement or to send her 11-year-old daughter to college. "That's not going to help me down the line in life," she said. Union supporters say as many as half the workers at the plant work for a contract-labor agency. Sapienza said that while the number varies, the company expects 15 percent of its workforce will be temporary employees this year. The UAW has organized some Southern auto parts plants in recent years, including Faurecia plants in Cottondale, Alabama, in 2012 and Louisville, Kentucky in 2013.

VW orders external probe into diesel emission scandal

There are well over 480,000 Volkswagen-made, diesel-powered vehicles currently traveling roads in the United States that do not meet the Environmental Protection Agency's emissions requirements. This, as you can probably imagine, is a very big deal, and has led VW CEO Professor Doctor Martin Winterkorn to release an official statement on the matter. "I personally am deeply sorry that we have broken the trust of our customers and the public," he said. It's important to note that these vehicles run software with a so-called "defeat device" that kicks in when the on-board computer senses that it is being tested for emissions. When the car is operating normally – in other words, when its exhaust isn't being sniffed – the cars do not meet US emissions standards. According to the EPA and the California Air Resources Board, affected cars emit as much as 40 times the allowable level of certain pollutants. "We will cooperate fully with the responsible agencies, with transparency and urgency, to clearly, openly, and completely establish all of the facts of this case," according to Winterkorn, who added, "Volkswagen has ordered an external investigation of this matter." It's not yet known who will carry out this investigation. At present, there are still a number of 2015 Volkswagen models on dealer lots that do not meet emissions requirements. VW has issued a stop sale on vehicles equipped with the 2.0-liter TDI diesel engine. What's more, the German automaker has been barred from selling 2016 model-year vehicles that use this engine, according to The Detroit News. Last year, diesel vehicles made up about 22 percent of all VW sales, which means these restrictions will have a big impact on the brand's sales performance until a remedy is found and the vehicles are approved for sale. Interestingly, the EPA has started a campaign of sorts to test vehicles from other automakers that sell diesel-powered vehicles in the United States to make sure they comply with emissions requirements under all operating circumstances. The EPA says it "will be reviewing [its] compliance protocols and introducing ways in which [it] can effectively test not only for emissions performance but also for the potential presence of defeat devices," according to a statement provided to The Detroit News. Check out the full statement from VW CEO Martin Winterkorn below. Related Video: STATEMENT OF PROF. DR.