Although Ford may be putting its U.S. clean diesel plans on hold, Volkswagen is moving full steam ahead with its U.S. diesel plans. The German automaker recently launched its Jetta TDI clean diesel in the Sates, and a new report indicates at least one more diesel VW sedan is destine for the U.S.

Moreover, VW’s U.S. diesel plans will likely see the automaker producing a new diesel-powered sedan at the company’s new Chattanooga, Tennessee production plant. In an interview with the Chattanooga Daily, VW’s U.S. head, Stefan Jacoby, revealed that the company will produce a diesel-powered version of a new mid-size sedan – intended to compete with the likes of the Toyota Camry and Honda Accord – at the company’s Tennessee plant.

“We don’t see any conflict between business and the economy and the environment,” he said.

VW will also produce a smaller version of the Jetta at the Tennessee plant – which will do battle with the Toyota Corolla and Honda Civic – so it remains possible that it could also wind up with a diesel option.

Jacoby also suggested that VW could launch a diesel-hybrid powertrain in the coming years, but failed to give any more details on the project. However, he promised that the new technology would be “at the forefront” of low emissions tech.

The Chattanooga plant is scheduled to begin production in 2011, but now word on when the new diesel model will start rolling off the production line.

    Print This Post