VW investing $900 million in Tennessee

Ryan Beene
AUTOMOTIVE NEWS

Published: July 14, 2014 2:15 pm ET
Updated: July 14, 2014 2:21 pm ET

Image By: Volkswagen AG Volkswagen AG will base its new American-focused crossover vehicle on this concept, and make it in Tennessee.

Related to this story

Topics Automotive, United States
Companies & Associations Volkswagen AG

Volkswagen AG will assemble a new family-hauling crossover at its plant in Chattanooga, Tenn., and invest $900 million to expand the factory in a push to double U.S. sales of VW-brand vehicles by 2018.

Production is slated to begin in late 2016 at the Chattanooga plant, Volkswagen’s sole U.S. assembly site, where it builds the Passat mid-sized sedan. Volkswagen will invest $900 million in the project and add about 2,000 jobs at the plant, CEO Martin Winterkorn said July 14 in a press conference near the company’s headquarters here.

VW will also open a North American vehicle design and development center in Chattanooga to be staffed by about 200 engineers to better cater its vehicles to the North American market, Winterkorn said.

Winterkorn said the initiatives reflect VW’s long-term commitment to the North American market.

“We are now launching the second phase of the Volkswagen campaign in the U.S.,” he said in a statement. “With the midsize SUV, the expansion of the Chattanooga plant and the new development center, the focus is on the wishes of the U.S. customer.”

In prepared remarks, Winterkorn said, “Our big objective is clear: By 2018, the Volkswagen brand wants to sell about 800,000 vehicles per year in the U.S.”

Last year, VW tallied 407,704 U.S. sales, a 7 percent decline from 2012. This year’s sales are down 13 percent in a U.S. market that continues to expand.

The decision to expand in Chattanooga also shows that the U.S. South remains competitive in the eyes of overseas auto executives despite the ascendancy of Mexico, where luxury marques BMW, Mercedes-Benz and Audi have all announced plans to start production by 2020.

More coverage at Automotive News. Automotive News is a sister publication of Plastics News.


Comments

VW investing $900 million in Tennessee

Ryan Beene
AUTOMOTIVE NEWS

Published: July 14, 2014 2:15 pm ET
Updated: July 14, 2014 2:21 pm ET

Post Your Comments


Back to story


More stories

Image

Bergen International adds manufacturing space, extrusion line

October 22, 2014 3:42 pm ET

Chemical foaming agent manufacturer Bergen International LLC recently doubled its manufacturing capacity, added an extrusion line and laboratory...    More

Image

Ford's final ACH plant, injection molder of HVAC systems, to close

October 22, 2014 1:58 pm ET

Ford Motor Co. will shed the last line of business in 9-year-old Automotive Component Holdings LLC by December when ACH closes its Plymouth, Mich.,...    More

Image

Kraft Foods looks to inspire with HQ

October 22, 2014 12:15 pm ET

Bright and open, Kraft Foods' new headquarters in Northfield, Ill., looks more like a high-tech startup than a company that makes Kraft Macaroni &...    More

Image

Wisconsin cast film maker buys Ohio blown film specialist

October 21, 2014 2:57 pm ET

A Midwest U.S. acquisition has created a company armed with two distinct film technologies: cast films and coextruded blown film constructions.    More

Image

BASF targets coffee and automotive connoisseurs with new resin grades

October 21, 2014 2:07 pm ET

BASF SE is using polybutylene terephthalate (PBT), which is normally used to manufacture high-end electronics, in a food consumer packaging product.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events