Friday, February 28, 2014

Volkswagen is not building a new plant in the USA.

Volkswagen has already decided their SUV can be produced in the USA Chattanooga facility. Is there a problem in understanding how a good facility can produce more product when requested. This has absolutely nothing to do with unionization. That is a fact.

...The $1 billion factory in Chattanooga (click here) started operating in 2011, building a cheaper, bigger version of Volkswagen’s mid-sized Passat sedan targeted at American customers. The plant has capacity to produce about 150,000 vehicles a year. The model’s U.S. sales last year fell 6.3 percent to 109,652 cars. The Chattanooga site could be ramped up to 250,000 vehicles annually should VW assign it to make the SUV, one of the people said.... 

If Volkswagen builds another facility somewhere else, it is because it serves the people they will be selling to. Transportation internationally has become very expensive. So, the company wisely builds automobiles where they sell if the numbers of sales justify it.

The employees in Chattanooga have no worries about the future. 

A $1 billion is a lot of infrastructure, people. VW is not walking away from this plant. I guarantee you, VW has not yet broken even on their investment yet, but, these buildings are depreciated as they age, so VW is fine.

This is a picture of the 2014 VW SUV. It is a good looking vehicle.

This is it's beginning story:

...With the VW Touareg, (click here) engineers were able to combine the features of a high-road vehicle with the comfort features of a luxury sedan and the dynamic attributes of a sports car - simply put : a noble SUV. Very quickly, the model Touareg placed among the top 5 of the cars registered in Germany....