VW opens new U.S. plant, Passat to be cheaper
Workers inspect the undercarriage of a new Passat inside the new Volkswagen plant in Chattanooga, Tenn. on Tuesday, May 24, 2011. Credit: AP Photo/Billy Weeks
As Volkswagen prepares its U.S.-specific 2012 Passat for its fall launch, an important milestone in the project will occur Tuesday. That's when Volkswagen's brand-new factory in Chattanooga, Tenn., will officially open for U.S. business, according to VW spokeswoman Mya Walters. As the production line starts up, Volkswagen will begin building up inventories for the market introduction of the 2012 Passat. The new factory will churn out more than 9,000 cars to supply the company's 600 dealerships with Passats for its September retail launch.
Designed in Germany and made in America, the new Passat is the first Volkswagen to be built in this country since the German automaker closed down its Pennsylvania plant in 1987. (Interesting factoid: Volkswagen was the first foreign automaker to build cars in this country, starting way back at the end of World War II.)
The 2012 Passat will be roomier to accommodate American sensibilities; VW has promised a starting price around $20,000, which would make the midsize sedan far more competitive compared with its more luxurious but costlier predecessor. Unlike the new Jetta, which was redesigned to achieve a new low price, we thought the new Passat's cabin materials were competitive with the class. The car will be offered with gasoline and diesel engines; VW says the diesel will make up about 30% of Passat sales and be the only diesel midsize sedan on the market that doesn't command a luxury price tag.
Overall, VW has invested $1 billion in the new factory and hired about 1,700 employees so far. The plant started assembling Passats for the Mexican market April 18. VW will continue hiring until all 2,000 positions are filled. At that point, the company aims to build 150,000 Passats each year, which is a major increase from the 12,500 Passats sold here in 2010.
VW also promises that most parts supplied to assemble the Passat will be sourced from local companies, which should help provide work for an additional 9,500 people. That bodes well for the Passat's chances in ranking high on our American-Made Index. A new index will be out in June, so the Passat will have to wait until 2012 for a shot at it.
© 2011, Cars.com
