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VW’s U.S. plant to build 250K per year

VW’s U.S. plant to build 250K per year

Viknesh Vijayenthiran January 14th, 2008 Viknesh Vijayenthiran By Viknesh Vijayenthiran Author January 14th, 2008
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December 31st, 1969 For Volkswagen to be a genuine rival to Toyota it will have to increase its sales in the U.S., and the key to doing so will be to overcome its current reputation as a manufacturer of low quality and expensive cars. The biggest problem is the fact that most of VW’s lineup is currently imported from Europe (some models come from Mexico), where the strengthening euro is making the cars more expensive than ever. VW’s solution is to start manufacturing cars in the U.S., a plan that has worked wonders for Toyota as well as luxury brands BMW and Mercedes. Speaking at the Detroit Auto Show, VW exec Ulrich Hackenberg told reporters that VW will locate a site in the U.S. for a new plant by the middle of the year and that any new factory will have to build at least 250,000 vehicles per year. Officials have ruled out a west coast location and are currently investigating sites in the southern states, reports Automotive News. CEO Martin Winterkorn, meanwhile, said that VW won’t be buying any former Chrysler plants. VW is developing a range of U.S. specific models including two new sedan models, and these are the cars likely to be built at the new site. Hackenberg also revealed that the up! minicar could be an option for the U.S. market but no final decision has been made.
VW’s U.S. plant to build 250K per year

VW’s U.S. plant to build 250K per year

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For Volkswagen to be a genuine rival to Toyota it will have to increase its sales in the U.S., and the key to doing so will be to overcome its current reputation as a manufacturer of low quality and expensive cars. The biggest problem is the fact that most of VW’s lineup is currently imported from Europe (some models come from Mexico), where the strengthening euro is making the cars more expensive than ever.

VW’s solution is to start manufacturing cars in the U.S., a plan that has worked wonders for Toyota as well as luxury brands BMW and Mercedes. Speaking at the Detroit Auto Show, VW exec Ulrich Hackenberg told reporters that VW will locate a site in the U.S. for a new plant by the middle of the year and that any new factory will have to build at least 250,000 vehicles per year. Officials have ruled out a west coast location and are currently investigating sites in the southern states, reports Automotive News.

CEO Martin Winterkorn, meanwhile, said that VW won’t be buying any former Chrysler plants. VW is developing a range of U.S. specific models including two new sedan models, and these are the cars likely to be built at the new site. Hackenberg also revealed that the up! minicar could be an option for the U.S. market but no final decision has been made.

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Comments (4 total)

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  1. By CraigS #1, Posted: 1/14/2008

    Yeah, we'll see if they can produce cars at even close to Toyota or Honda's quality levels. I've owned three VW's in the past. One was flawless but the other two were constantly problematic and since my last one I vowed no more VW's for me!

  2. By chris #2, Posted: 1/14/2008

    craig; VW wont have a problem matching toyotas quality. I can't wait to see this year's quality projections. last year ford was edging toyotas build quality. toyotas sinking really fast. VW has already bottomed out. I hope.

    Honda, as always, has remained a lower production company and kept their focus on quality.

    I love how toyota has pushed for the #1 spot in the last 10 years, and now VW wants to challenge them for that spot, and GM ofcourse wants to take it back. Has any company out there thought "all of these companies want to sell 10 million cars a year,... but where are the customers coming from??"

    What scares me is the number of companies looking at investing production in america. Its great news because the big three are idling plants all over the place. nothing better for a foreign company to come in and just buy up existing auto plants. people keep working, and everyone is happy. But the big thing here is that these foreign companies are looking to move production here, a move that will take at least 3 years to realize, and probably 10 years to become profitable. do VW's, volvo's, and toyonda's accountants really think that the US dollar is going to stay this low for that long?

  3. By Gus #3, Posted: 1/14/2008

    I think a big part of the reasoning is that shipping becomes so much cheaper as well.

    That and the ability to say "made in America!" on the window sticker...

  4. By NaBUru38 #4, Posted: 1/14/2008

    US buyers will be desperate for the the Brazilian-built new Gol NF... Not!

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