CHATTANOOGA (AP) — Chattanooga Seating Systems says an expansion at its facility Volkswagen's Tennessee plant will create 190 jobs.

The Volkswagen supplier is a joint venture between Magna Seating and Hollingsworth Logistics. CEO Stephen Barr cited the company's close work with state and local officials.

The $5.4 million investment will include updates to the current facility and expansion into an unoccupied building nearby.

Gov. Bill Haslam said the expansion speaks in favor of Tennessee's business climate and the state's efforts to become a leader in the automotive sector.

Volkswagen is in the process of preparing the Chattanooga plant to make a new SUV later this year. The plant has only made the midsized Passat sedan since it opened in 2011.