Jump to content
Create New...
  • William Maley
    William Maley

    Volkswagen Announces Production Of Midsize SUV In Tennessee

      Volkswagen Picks Tennessee As The Place For Their Seven-Seat Crossover


    This morning, Volkswagen announced that it will build the upcoming seven-seat crossover at its Chattanooga, Tennessee plant starting in 2016. The seven-seat crossover will see Volkswagen investing $900 million into the plant and add 2,000 jobs. The investment will also include retooling for the plant so it can build vehicles based on the MQB platform.

    “The Chattanooga-built midsize SUV will allow us to fulfill the wishes of our dealer network, bringing new customers to our showrooms and additional growth for the brand. We are eager to be entering this growing vehicle segment with a world-class, seven-passenger SUV from Volkswagen,” said Michael Horn, President and CEO Volkswagen Group of America.

    Volkswagen has been having a tough time in the U.S. with sales. The German automakers hopes a seven-seat crossover will reverse their fortunes.

    That's not the only investment Volkswagen is making into the U.S. The company also announced $7 billion investment in its U.S. operation by 2018. Part of that investment will go to a new R&D facility in Tennessee that will employ 200 engineers.

    “The United States of America is and will remain one of the most important markets for Volkswagen. We are now launching the second phase of the Volkswagen campaign in the US,” said Volkswagen CEO Martin Winterkorn.

    Source: Volkswagen

    William Maley is a staff writer for Cheers & Gears. He can be reached at[email protected]or you can follow him on twitter at @realmudmonster.

    Press Release is on Page 2


    New Midsize SUV From Volkswagen To Be Produced In Chattanooga

    • Winterkorn: “This model will play a key role for Volkswagen’s presence in North America”
    • Volkswagen Group of America to invest approximately $900 million in the project
    • Second model to be produced in Chattanooga, in addition to the US-built Passat, starting from the end of 2016
    • Approximately 2,000 additional jobs to be created
    • Establishment of a National Research & Development and Planning Center in Chattanooga
    • Group Works Council Chairman Osterloh to be named a member of the Board of Directors of Volkswagen Group of America

    Wolfsburg, July 14, 2014 – Within the framework of its Strategy 2018 plan, the Volkswagen Group is expanding its industrial footprint in the US. The Board of Directors of Volkswagen Group of America has decided to award the production of the new midsize SUV to the Chattanooga plant in Tennessee. The Group will be investing a total of approximately US$900 million (€643 million) in the production of a newly developed, seven-passenger SUV, and creating 2,000 additional jobs in the US. About US$600 million (€432 million) will be invested in Tennessee.

    “The United States of America is and will remain one of the most important markets for Volkswagen. Over the past few years, we have achieved a lot there. We are now launching the second phase of the Volkswagen campaign in the US. With the midsize SUV, the expansion of the Chattanooga plant and the new development center, the focus is on the wishes of the US customer. This is also a strong signal for the US as an industrial and automobile production location. The Volkswagen brand is going on the attack again in America,” said Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, in Wolfsburg.

    “The Chattanooga-built midsize SUV will allow us to fulfill the wishes of our dealer network, bringing new customers to our showrooms and additional growth for the brand,” said Michael Horn, President and CEO Volkswagen Group of America. “We are eager to be entering this growing vehicle segment with a world-class, seven-passenger SUV from Volkswagen.”

    Apart from investing in the production of a new vehicle, the Chattanooga location is to receive a new, independent National Research & Development and Planning Center of the Volkswagen Group of America for project coordination in the North American market. The objective is to identify customers’ feedback in the market and to integrate them more expeditiously into existing and planned vehicle models. This will lead to the creation of approximately 200 qualified engineers working in Chattanooga. This decision is another element in the investment program that the Volkswagen Group has launched in the region. From 2014 to 2018, the Volkswagen Group will be investing more than US$7 billion in the US and Mexico. It is Volkswagen’s goal to deliver 800,000 vehicles in the US by 2018.

    "Today is an exciting day not just for Chattanooga and Hamilton County but for all of Tennessee, and I want to thank Volkswagen for its significant long-term investment in our state,” Governor Bill Haslam said. “The impact of this announcement goes far beyond the 2,000 new jobs because of the large multiplier effect of the automotive industry, and adding an additional manufacturing line and the National Research & Development and Planning Center sends a clear signal that Tennessee can compete with anyone in the global marketplace.”

    Christian Koch, CEO and Chairman of Volkswagen Group of America Chattanooga Operations, said: “We are proud to be making the new midsize SUV here. This is fantastic news for the plant and proof of the confidence placed in the workforce that does a great job here making high-quality cars every day.”

    At Chattanooga, the new SUV will be integrated into existing plant structures. Existing areas in production will be used for the assembly of the midsize SUV. A total floor space of 50,000 m² (approx. 538,000 sq ft) will be added to the existing production facility. The midsize SUV, which is based on the CrossBlue concept vehicle, was developed especially for the North American market. The CrossBlue made its global debut at the 2013 North American International Auto Show in Detroit.

    Today, Volkswagen also announced that the Chairman of the Group Works Council of Volkswagen, Bernd Osterloh, will join the Board of Directors of Volkswagen Group of America, Inc. "We are pleased that Mr. Osterloh has declared his willingness to play a concentrated role in shaping our US strategy in the future. He will represent the views of the workforce. This is in line with the codetermination culture of Volkswagen, which is one of our key success factors,” Prof. Dr. Winterkorn said.

    Osterloh stated: "It is important for us that our colleagues in the U.S. know that we also care about the production site and the employment in Chattanooga. I am looking forward to my work on the Board. I am determined to uphold the interests of Volkswagen employees in Chattanooga. The North American market offers considerable opportunities; in my opinion, these have not been pursued with sufficient consistency in the past. With today’s decision to produce the midsize SUV in the USA, we are taking a key step.”

    “Hamilton County is pleased to partner with Volkswagen as they create 2,000 new family-wage jobs which will also generate very positive economic ripple effects for residents throughout our community,” said Hamilton County Mayor Jim Coppinger. “By working with Volkswagen to build on the tremendous success of their initial job creation project, we are establishing a foundation for continuing economic growth for years to come.”

    “Volkswagen is one of Chattanooga’s largest and most valued employers. They have brought 12,400 living-wage jobs to our region, employed Chattanoogans and helped build our middle class. This expansion will result in a huge capital investment and thousands of new jobs,” said Chattanooga Mayor Andy Berke. “From day one, the City and County have worked hard to see today become a reality, when we can announce that Volkswagen will be adding more jobs, more investment and expanding their presence in Chattanooga.”

    “This announcement is great for Chattanooga and great for Volkswagen,” said Ron Harr, president & CEO of the Chattanooga Chamber. “Thanks to Volkswagen’s expansion, we will have a much easier time recruiting additional automotive suppliers to help them build out their supply chain while also cementing Chattanooga as ‘The Center of the Automotive South.’”

    User Feedback

    Recommended Comments

    Cool for the investment and jobs this brings to America. Sad that based on the picture above, it looks like a raised version of the Ford Flex. A Station wagon on steroids.

     

    Makes me wonder if a renaissance of station wagons built as CUV's is upon us?

    Link to comment
    Share on other sites

    Interestingly, this is going to cost VW big bucks, as when they built the Chattanooga plant and the upgrade on  the Pueblo plant, they did not figure in building AWD/4WD vehicles.  There will ahve to be major, expensive changes made according to VW insiders I know.  Sounds like another case of VW not understanding the North American market.

     

    I just don't understand how they can sell Audi's like lemonade on a hot day, and yet fall on their face for decades with VW.  It's not like they haven't been selling cars here for 60 years...one would think that after 6 decades in a market one would understand it.

     

    But VW seems as lost here as an eight day old house cat with brain damage.  And I actually like several of their products...

    Link to comment
    Share on other sites

    i expect this to be huge.  Audi wannabees will flock to this.  those that don't want a US model and want the snobbery of Europe vs Japan for less money will eat this up.

     

    Anyone seen the new Euro Passat (km77.com has nice pics)  who thinks the Euro Passat is a lot nicer than our US one?  I don't think its that much better actually.

    Link to comment
    Share on other sites

    Well I suppose selling Chryslers and Jeeps would be one way to increase sales for the company...cause selling VWs ain't doing it.

     

     

    Outside of the diesels and the GTI, again, they are pretty much irrelevant in the USA.  And the GTI will never be a huge seller, as people here do not want to pay upwards of 30K for a hatchback.

    Link to comment
    Share on other sites

    Is is true that VW's being sold in the US are of lesser quality in Europe. In the EU, VW's are made in Europe and the more upmarket cars are made in Germany.

     

    Depends on where they are being built.  The VWs sold in the US that are built in Mexico tend to have terrible reliability and quality issues.  Some VWs come from Europe and the seem to do better.  The US Passat is built in Tennessee and from my observations has excellent build quality and reliability.  Some of the materials seems a little on the cheap side, but that is a design choice made by VW, not a manufacturing issue. 

    Link to comment
    Share on other sites



    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.


  • google-news-icon.png



  • google-news-icon.png

  • Subscribe to Cheers & Gears

    Cheers and Gears Logo

    Since 2001 we've brought you real content and honest opinions, not AI-generated stuff with no feeling or opinions influenced by the manufacturers.

    Please consider subscribing. Subscriptions can be as little as $1.75 a month, and a paid subscription drops most ads.*
     

    You can view subscription options here.

    *a very limited number of ads contain special coupon deals for our members and will show

  • Similar Content

  • Posts

    • You’re thinking in purely North American terms. China and Middle East still have decent sedan sales. It costs Genesis next to nothing to put a couple of these on a boat to the US with some GV80s. The boat is already headed that direction anyway.    As for coupes and convertibles, these are just concepts for now, but as platform flexibility increases with the move to EV, I think we will see he return of lower volume body styles like these.
    • This looks so freakin great.  
    • Well kids, today's lesson is: Just buy the effing tool you need. Last weekend I took the R1100RS out on the longest ride I've been on with it. A total of 5 hours of wandering. Even with 109k miles on it, this bike just loves to chew up highway. The engine runs superbly.  I was really trying to burn off gas that's been in the tank a little long for comfort, but even with 5 hours of riding, I have more than half a tank left! No issues on the trip except I noticed that the right fork was leaking oil.  These are telelever forks that don't actually have any suspension components in them. The shock and spring are mounted on a cantilever platform between the forks.  Essentially, all the forks do is slide up and down and keep the wheel aligned. When I got back from the trip, I ordered a set of fork seals and picked up fork oil. Watched a few videos on the process and decided I was set. ALL of the videos suggested that I could get the oil seal out with a flat head screwdriver. Both my Haynes manual and the BMW service manual I have said to use an oil seal remover tool. You can see where this is going. I effed with that oil seal for a good hour with a flat head, some long needle nose pliers, even some plastic bodywork tools I have before I gave up and drove to Harbor Freight.  Harbor Freight has an Oil Seal Removal tool for $7.99.  I got that and a few other things that I decided I might need to try also. Got home and with the tool I had the oil seal out in 15 seconds. . I replaced the seals, topped it off with some fresh fork oil, and had it back together faster than the time I spent just trying to get the damn seal out. So, moral of the story is: Just buy the damn tool.
    • Based on the pictures, it would appear what went into the EV9 has been pushed out to the other EVs in Hyundai and Genesis based on the pictures. If so, then a decent set of physical switches for the most common features and a very user-friendly thought-out interface imho. I like this new updated design much better than generation 1. I am very excited to see what comes of the next 18 months. Seems to be a weird assortment of some companies are investing in the U.S. to ensure market share gain and production with minimal tariff affect like the 21 billion Kia/Hyundai/Genesis are investing and then others are cancelling plants like Ford and GM. Then you have the Europeans that have come out and stated they will have a Tariff line cost on each auto now with no changes in production as I think they are figuring 47 could be gone soon based on recent video of him and his leg dragging, slurring of speech and freezing in talking and someone else will have common sense to set fair trade negotiations and balance the craziness out.
    • My main question is if they improved the center console.  I really like the Ioniq 6, but the center console of the interior was such a huge miss in terms of material quality and construction that it killed the car for me. It was odd that given the level of quality in the rest of the interior that one of the most touched items in the car outside of the steering wheel was an obvious afterthought to the design team.
  • Who's Online (See full list)

  • My Clubs

×
×
  • Create New...

Hey there, we noticed you're using an ad-blocker. We're a small site that is supported by ads or subscriptions. We rely on these to pay for server costs and vehicle reviews.  Please consider whitelisting us in your ad-blocker, or if you really like what you see, you can pick up one of our subscriptions for just $1.75 a month or $15 a year. It may not seem like a lot, but it goes a long way to help support real, honest content, that isn't generated by an AI bot.

See you out there.

Drew
Editor-in-Chief

Write what you are looking for and press enter or click the search icon to begin your search