VW May Add Small Car or SUV to U.S. Plant

Washington DC August 11, 2010; The AIADA newsletter reported that Volkswagen may build a small car or an SUV at its new U.S. plant in Tennessee, in addition to the mid-sized sedan that goes into production there next year. According to Autoweek, Volkswagen is considering options for the plant's second product even before it has begun building its first.

Tom Loafman, the company's purchasing director, said last week at the CAR Management Briefing Seminars that the plant's large Chattanooga site is in the running for a new engine plant Volkswagen hopes to build in North America.

The engine plant could also go to a separate greenfield site or to VW's production complex in Puebla, Mexico, he said.

Volkswagen is counting on its $1 billion Chattanooga venture to bring down the costs of its U.S. products and give it capacity to reach 800,000 VW brand sales in the United States by 2018. Last year it sold 213,454 VW brand vehicles.

Volkswagen expects the new mid-sized sedan to compete more directly against high-volume family sedans such as the Honda Accord and Nissan Altima. VW's strategy calls for Chattanooga to turn out cars at a much lower cost than the mid-sized Passats imported from Europe.

Click here for more from Autoweek on Volkswagen’s plans for its new Tennessee plant.