The City Council on Tuesday approved new tax breaks for a major Volkswagen supplier in Chattanooga.
Gestamp already has a PILOT (payment in lieu of taxes) at the VW supplier park at the Enterprise South Industrial Park.
It recently acquired 29 acres at the former Brachs candy plant on Jersey Pike.
Gestamp had asked that the PILOT be extended to the new property.
Council members were told that the bulk of the output of the new facility will go on BMWs, not VWs. It will be 81 percent BMW and 19 percent VW.
Current taxes on the candy company property will continue to be paid. The tax break will apply to improvements.
Volkswagen is currently under siege after a major emissions control scandal.