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New U.S. Plant for Volkswagen

The largest car manufacturer of Europe, Volkswagen, has plans to set up a new plant in United States. In an interview with Stefan Jacoby, the Chief Executive Officer of Volkswagen of America, he had said that the decision for building a plant in America was all about manufacturing the right vehicle with the appropriate price and that they would be producing the fitting volume. The plan was to create engines and transmissions in North America. The purpose behind this was to cut down its weak exposure to the U.S. dollar. Jacoby had said, “We (Volkswagen) will not be competitive unless we (Volkswagen) produce these components locally.”

No mention of the location of the upcoming Volkswagen assembly plant was made. It was not stated whether the plant would be situated in the U.S., Canada or Mexico. However, production would start within three years of when the proposal was made. The local production is the central aspect of the growth plan of Volkswagen where the U.S. is concerned. The U.S. sales for 2007 went down by 1.9% as compared to year 2006. The sales closed at 230,571 units in 2007. The current objective is to be able to sell 800,000 Volkswagen vehicles in the U.S. only. The company’s target due date for said objective is 2018. They already have vehicles lined up, which will be presented to the U.S. market this year. The line-up includes the new SUV, the Volkswagen Tiguan. This model will be priced starting at $22,490. Meanwhile, the new Routan will be unveiled from February 6 to 17 this year in Chicago. Yet another model joining them is the Volkswagen Passat CC, the sleek four-door car with a coupe design intended for comfort without compromising its impressive exterior.

Source: Top Speed

This entry was posted on Monday, January 28th, 2008 at 10:27 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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