Although Volkswagen is keeping mum about the location of its U.S. auto plant, the German automaker has revealed that it will announce the plant location on July 8th. As previously reported by Leftlane, Michigan is believed to be out of the three-way horse race, leaving Alabama and Tennessee as the two potential plant sites, with Alabama holding a slight lead.
The new plant is intended to help VW reach its goal of selling 1 million vehicles in the U.S. by 2018, and will also help alleviate the added cost of importing vehicles into the U.S. — especially given the weak state of the dollar. “The most essential change which is coming up for us is that we produce locally here in the United States,” VW head Stefan Jacoby told members of the Greater Washington Board of Trade. “That brings us in a position where we can better understand the market, that we can react faster to market needs and market changes than we have done before.” Jacoby failed to mention which site had the lead.
The new plant will cost VW $788.2 million, according to auto motor und sport.
According to Automotive News, VW currently owns about a 2 percent share of the U.S. market.
VW closed its last U.S. production facility in 1988 and, although the location of the new plant will be announced next month, it won’t be up and running until sometime in 2010. It’s not known which model or models VW will build at the plant, but it’s likely the high-volume Jetta and Passat will roll off the line. Variations of these vehicles’ platforms also underpin other popular models, including the Rabbit and Audi TT. Once up and running, the new plant should have an annual capacity of 300,000 vehicles.
06/30, 10:48 AM
posted by:
HemiRoadRunner
We’re halfway through 2008, they haven’t decided on a location yet, and they expect to be producing cars by 2010? GM can’t even bring the Camaro out in less than 7 years.
06/30, 10:56 AM
posted by:
mayer_ray_nagin
Yeeehawww VW! 300,000 vehicles per year should translate into about 1,200,000 new vehicle recalls per year! Way to stay ahead of the pack!
06/30, 11:08 AM
posted by:
xyunya
In order to be anywhere near success today WV needs 4 cylinder economical and efficient engine for Golf/Rabbit type car. They could not certify one for ages. Their current 2.0L TDFI is more expensive then 5 cylinder one and less frugal as well. That leaves them with no cars to sell. How is the new assembly line will remedy this?
06/30, 11:17 PM
posted by:
Get Real
3 comments. No one cares.
I don’t care about VW either.
06/30, 11:30 PM
posted by:
TOZO
I just don’t see a stronger demand for VW’s in North America. That being said, I think the plant will be in either Hawaii, Alaska, Puerto Rico, or Guam. Possibly Catalina Island. Far far away….