DETROIT -- Magna International Inc. is teaming up with Hollingsworth Logistics Group LLC to create a joint venture to supply seats to Volkswagen AG's new auto assembly plant in Chattanooga, Tennessee. Chattanooga Seating Systems will be a minority auto supplier, with 51 percent controlled by Hollingsworth, which is owned by a Native American family and based in suburban Detroit.
Magna, based in suburban Toronto, has worked with Hollingsworth on previous projects.
The joint venture will be based in Chattanooga and eventually employ 120 people with full manufacturing of the seating for a mid-sized sedan Volkswagen will make in Chattanooga at its assembly plant, which is now under construction. The joint venture is the second major supplier announced for the project, local officials said in a press release.
The company is now operating out of leased space in Chattanooga, but will be seeking a permanent location before full production starts in early 2011.