Volkswagen To Open Manufacturing Plant in Tennessee
Volkswagen is opening a plant in Chattanooga Tennessee in early 2011. This will be VW’s first vehicle production unit in the US. The Supervisory Board of Volkswagen AG, Germany have agreed to the establishment and approved an investment of up to 620 million Euros the equivalent of $1 billion USD.
The first car to roll off the line will be a vehicle designed and built specifically for the U.S. market. In the medium term, Volkswagen will aim for some 2,000 employees working directly for the company, in addition to large numbers of outside jobs, for example, in supply and logistics. According to Prof. Martin Winterkorn, CEO of Volkswagen AG, the growth strategy for VW will be 800,000 cars a year by 2018 in the ‘United States’, giving rise to the thought that this may not be VW’s only American plant.
The company’s last US plant closed 20 years ago. The company’s current strategy is to sell 800,000 cars in the US by 2018. Audi is also considering opening its own plant in the United States.
Looks like Detroit won’t have to look overseas anymore for its biggest competitors…