Despite the dismal news from General Motors about their recent decision to cut salaried employees in an effort to save the company from its rumored bankruptcy, another automaker is creating new jobs in the United States.

This week, Europe’s largest automaker, Volkswagen, announced plans to build a new a new U.S. assembly plant in Chattanooga, Tennessee.  Officials say the facility will create about 2,000 jobs.

Volkswagen Group of America Inc. states it plans to use their Chattanooga operations to produce a new midsize sedan designed specifically for the North American consumer.  The company says the new plant and jobs will add $1 billion to the economy.

Sites in Alabama and Michigan were also considered as part of Volkswagen’s long-term goal to increase its presence in America.  Volkswagen had not had an active production facility in the United States since it closed its last plant in this country in 1988.