VW to invest in Puebla plant, expand US supplier contracts

Otto Lindner, CEO of Volkswagen Mexico, announced today that Volkswagen AG will expand production at the company's plant in Puebla, Mexico, partly in preparation for an as-yet unnamed new compact sedan for the global market.

In an interview with Automotive News last week, Otto Lindner said that production of the compact will start in 2010. "We can't say what it will be, but it will be a world car, with the exception of China," he said.

Currently, the plant produces both the current and previous generation Jetta sedan and wagon, as well as the coupe and convertible versions of the New Beetle. The United States and Canada are the primary exports markets for cars produced at Puebla. 40 percent of current- generation Jetta wagon production is exported to European markets.

Puebla to set all-time production record in 2008
In recent years, the Puebla plant has been operating at max capacity. The factory in set to build 450,000 cars this year and they will set a company record in the process.

Lindner said the expansion program will boost production output to 550,000 cars by 2011.

Volkswagen AG will build a new 65,000 square-foot stamping shop, a new 265,000 square-foot body shop and a new 85,000 square-foot logistics facility on the northern edge of the Puebla complex. The automaker also is extending the 117,000 square-foot paint shop by 70,000 square feet and adding 104,000 square feet to the 301,000 square-foot assembly shop.

VW to strengthen ties with US, Canadian suppliers
Along with the investment in Puebla plant, the automaker said it will also buy more parts assembled within Canada and the United States in an effort to combat fluctuating and often unfavorable exchange rates.

Currently, 60 percent of the parts used at Puebla are provided by suppliers based in Mexico. By 2011, the company plans for 90 percent of parts to come from suppliers within Mexico, Canada and and the United States, Lindner said.

[Source - AN ]

Lithe VW Passat CC lineup, pricing announced; sales to begin Q4 2008

Inspired by the sensuous lines and stately presence of the Mercedes-Benz CLS-series four door coupe, German automaker Volkswagen will bring the same dynamic design flair to the masses this fall under the aegis of the Passat CC moniker.

At Pebble Beach Concours d'Elegance last weekend, Volkswagen unveiled a special edition of their newest addition to the U.S. lineup.

Dubbed the Passat CC Gold Coast Edition, the car featured a 3.6 liter V-six gasoline engine with FSI direct injection, the company's DSG dual-clutch six-speed transmission and subtle aerodynamic revisions, lending the car a sporty, yet restrained presence. 19 inch propeller style alloy wheels and a unique paint hue — co-developed with DuPont and consisting of a mix of gold, brown and silver tones — completes the exterior package.

Inside, four ergonomically sculpted seats wrapped in warm brown leather with bronze piping, are set against dark brown interior panels with matching leather highlights. The balance of the interior arrives unchanged from the CC's sedan stablemate , yet with the new color palette and sweeping expanses of glass, the effect is anything but staid.

Taken in sum, the Passat CC is an alluring and refreshing design that brings the sleek essence of plutocrat CLS-class coupes to a new, more attainable price point, all while retaining enough visual DNA to remain a part of the Volkswagen brand.

Despite the dramatic visuals, the timing of VW's newest product comes at a turbulent time for automakers. Today's pricing announcement builds on last month's news that the company would commence construction on a $1 billion dollar plant in Chattanooga, Tennessee as a part of the company's long term plans to bump Toyota from their slot as the world's second most prolific automaker. It would appear then, that confidence remains high.

Yet Volkswagen is keenly aware of the icy reception Americans bestowed upon the $70,000 Volkswagen Phaeton four years ago this spring. Despite reviews that praised the car for its combination of power and understated grace, buyers rejected the notion of paying a premium price for a premium sedan spoiled by a plebeian badge.

Price, therefore will pay a key role in ensuring the Passat CC's success. The base model CC 2.0T will sell for less than $27,000. Equipped with a 200-horsepower 2.0 liter turbocharged inline-four and a six-speed manual transmission, the base model will be joined by the 280-horsepower CC 3.6 which also borrows its drivetrain from its Passat sedan cousin.

European markets will also receive a 1.8 liter, 160-horsepower model (for markets where road tax is based on engine size) and two diesel variants developing 140 and 170 horsepower respectively.

In a release accompanying the pricing announcement, company marketing chief Detlef Wittig said that the company expects 60 percent of CC sales will come from the U.S. market. In total, production of the CC is expected to top 300,000 units over the next seven years.

Upon initial review, those figures seem timid. The Passat CC combines sleek styling and proven mechanicals at a price heretofore unseen. If there's an automotive iPod marketing theme to be found — a gotta have it product with wheels — the Passat CC has the chutzpah to tap it.

VW to build fuel-miser "1 Liter" concept

As NMM continues to grow, I've focused on breaking news and new technologies. But to fully understand the impact of VW's decision, I have to delve in the company's history for a moment.

In 2002 — shortly after then CEO Ferdinand Piech presided over the launch of the $70,000-plus VW Phaeton luxury sedan — Piech wanted to attend the company annual meeting in Hamburg in style.

But rather than pluck one of the hand crafted Phaetons off the line, Piech directed a small group of engineers to build the most fuel-efficient vehicle they could. The result set the European motoring press raving.


Follow this link for full-size photos and to learn more about the VW "1 liter "concept.

Weighing only 638 pounds and hewn from unpainted carbon fiber, Piech's 2-seat fuel miser returned an astounding fuel economy of 0.9 liters of diesel per 100 kilometers.

Fiddle with the figures a bit and you get 282 miles per imperial gallon.

Now, the "1 Liter" concept car will be put into limited production.

While the concept car's 356cc single cylinder will be replaced by a turbodiesel inline-twin , the design remains otherwise unaltered. The passenger still sits behind the driver to minimize the width of the car. And to preserve the strength of the carbon-fiber monocoque body, the jet-fighter canopy door will also carry over to the production model.

The asking price is still up in the air. The carbon fiber chassis will be the most expensive investment for VW, but the company is optimistic that the car will hit the road in 2012 for about £24,000.

VW hasn't spoken about whether the car will come to US shores, but they haven't ruled it out either. They haven't capped the number of units either. In other words, start calling and writing now.

[Source]

VW to build new US plant in Tennessee

In keeping with their goal to rival Toyota's global sales, Volkswagen AG will invest US$1 billion in a new factory to be built in Chattanooga, Tennessee.

When opened in 2011, the factory will employ 2,000 workers. Production will begin with a new mid-sized sedan designed specifically for North America. In addition to expanding production capacity, the new factory will help insulate the company against the adverse effects of a weakening US dollar and fluctuating exchange rates.

Last year, the VW/ Audi Group sold over 324,000 units, roughly 230,000 of which were Volkswagens. The company plans to increase it's US sales to 1 million units by 2018, with 80 percent of that volume coming from the Volkswagen brand.

"The U.S. market is an important part of our volume strategy, and we are now very resolutely accessing that market," said VW group CEO Martin Winterkorn. Winterkorn went on to note that Chattanooga was chosen because of its supplier infrastructure, qualified workforce and transport connections.

The news ends speculation that Volkswagen had planned to build the new factory in Alabama. Rumors also circulated that Michigan was an alternate candidate.

VW, Europe's largest carmaker, closed their last U.S. production facility, located near Pittsburgh, Pennsylvania in 1988.

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