Yanfeng Automotive Interiors, a Chinese supplier, will build a $55 million factory in Chattanooga to supply components to Volkswagen AG’s nearby assembly plant.
Yanfeng will supply interior components including floor consoles, instrument panels and trunk trim for future VW models. The new plant will employ 325. Production is slated to begin in late 2016.
VW plans to make a midsize SUV at its Tennessee plant starting late next year. Yanfeng was formed in 2014 as a joint venture between Johnson Controls and Yanfeng Automotive Trim Systems Co., a subsidiary of Huayu Automotive Systems Co., which is the component group of SAIC Motor Corp.
Johnson Controls has a 30 percent stake.
The joint venture, with projected sales of about $7.5 billion annually, is one of the largest automotive interiors suppliers.