A union could be headed to a major Tennessee manufacturing plant.

Volkswagen managers have confirmed, the German automaker is in talks with the United Auto Workers about establishing a works council at its Chattanooga assembly plant.

In a letter to employees, the managers acknowledged that they are engaged in a "lively discussion" about labor representation at the plant.

Volkswagen says it's talking with UAW because a works council can only be established in the U.S. through an established trade union.