To boost output of the VW Passat at its new plant in Chattanooga planned by Volkswagen AG, Tenn., by 13 percent and add 200 jobs.
The automaker will hike production of the redesigned Passat from 31 to 35 cars per hour. According to VW the new jobs will be integrated into the plant's current two-shift operation and be filled by full-time Volkswagen employees.
The plant is currently staffed with 2,000 Volkswagen employees and an additional 500 workers employed by Aerotek, the automaker's staffing partner.
Volkswagen said it planned to hire production positions, supervisors and engineers.
The $1 billion plant opened in 2011 and is the centerpiece of a plan to boost annual U.S. sales of the VW brand to 800,000 by 2018.
U.S. sales of the VW brand hit 324,402 last year, up 26 percent from 256,830 in 2010 in an overall market that rose 10 percent.