A joint venture by Magna Seating and Hollingsworth Logistics will supply Volkswagen America's new Chattanooga plant with seats, creating 120 new jobs.

Magna Seating - part of Magna International - and industrial supply chain management provider Hollingsworth will set up Chattanooga Seating Systems (CSS) to make seats for the new VW sedan to be built in Tennessee.

CSS is 51% owned by Hollingsworth Logistics and 49% by Magna Seating. CSS will be a minority supplier to Volkswagen by virtue of Hollingsworth's status as a Native American-owned company.

"This partnership is a sign of things to come for everyone involved," said VW president and CEO in Chattanooga, Frank Fischer.

"We are pleased that a minority-owned joint venture will be a part of our supplier team for the new mid-size sedan and that the addition of 120 jobs will continue to strengthen the economy here in the Tennessee Valley."

"This joint venture strategically positions both companies for continued growth in North America," said Magna Seating president Joe Pittel.

"We look forward to working together with Hollingsworth, delivering seating solutions to Volkswagen."

As a newly formed company in Tennessee, CSS said it worked closely with city, county and state government officials to take advantage of incentives offered to many of the suppliers establishing operations in support of VWGoA's new facility.

"We're pleased to join Volkswagen in welcoming Chattanooga Seating Systems as the second major auto supplier to set up shop in Hamilton County to support the new assembly plant," said mayor Claude Ramsey.