2023 Author: Eric Donovan | [email protected]. Last modified: 2023-08-25 09:36
The VW Group will build its new mid-size SUV at the Chattanooga plant. In the afternoon, the group held a press conference in Wolfsburg.
Europe's largest carmaker Volkswagen wants to build its new SUV at the US plant in Chattanooga. The factory in the southern state of Tennessee prevailed against the alternative Mexico, as the news agency dpa learned on Monday from a reliable source. The central VW committees have already approved the decision. A company spokesman did not want to comment on the subject when asked.
VW boss Martin Winterkorn wanted to explain "the next steps on the North American market" in the afternoon. To this end, the company announced a press conference in Wolfsburg - including a live broadcast to the US location in Chattanooga.
Chattanooga only plant in USA
The expansion of the plant for the seven-seater with the working title Crossblue has the dimensions of a new factory building and should bring several hundred new jobs as well as investments in the mid to high three-digit million range. In the past, Volkswagen had announced that it would plan to spend more than seven billion dollars (a good five billion euros) in North America by 2018. Chattanooga is the only VW plant in the USA. Worldwide the group has 106.
The Wolfsburg-based company designed the Crossblue especially for the USA, the world's second most important car market after China. The decision in favor of Chattanooga is of double importance for Volkswagen: The group has been weak in the United States for a long time. Although the market there is growing and people are buying more cars again, VW has had to report falling sales figures for many months.
There are no new models
The top management has already admitted that new models are missing and the existing models have to be revised faster than before. Winterkorn had promised improvement for the annual balance sheet. The decision also plays an important role because a dispute about employee participation has been simmering around the plant in Chattanooga for months.
All other 105 plants have employee participation based on the German model. But that kind of works council is missing in Chattanooga. This is a thorn in the side of the employees' side, which is powerful in the VW supervisory board, and they urge change. (dpa)
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