We're #2! And New SUV Coming To Chattanooga

Hip hip hoorah! We’re almost there! General Motors announced last Wednesday their car and truck sales world wide from January through June was 4.2 million cars. Which means, Volkswagen advanced to the second place position in global auto sales with 4.97 million YTD. Toyota has not released their numbers yet, but it is expected that they will remain in first place, with an expectation of 10.1 million vehicles by the end of the year. 

So why is this a big deal? Not only is this an awesome accomplishment for VW, but it’s just another step towards the ultimate goal of world domination.. I mean the biggest auto manufacturer in the world by 2018. 

(Photo provided by @VW media)

In addition to this exciting update, Volkswagen also revealed more fantastic news. For those of you familiar with the CrossBlue concept we unveiled at the 2013 North American Auto Show in Detroit, an SUV based on this design is finally planned for production to take place at VW’s Chattanooga plant. CEO of VW Dr. Martin Winterkorn stated, “This model will play a key role for Volkswagen’s presence in North America.” 

The CrossBlue concept showed as a 3 row SUV. It was also initially equipped with a plug-in diesel-electric hybrid powertrain that was under development. This new concept is estimated to average 89 mpg, which would seriously change the automotive game. Similar versions of the conceptual powertrain were unveiled at various auto shows, including a dual electric motor direct injection gas V6 hybrid, which initially showcased on the CrossBlue Coupe concept, estimated to achieve 79 mpg, with a 0-60 time of 5.9 seconds. Pretty fast for not only a hybrid, but an SUV.

(Photo provided by +Volkswagen USA  media)

Chattanooga currently builds the Passat, which has been a success in the U.S. market. The Chattanooga plant currently employs approximately 1,500 employees for production for the Passat. There was much debate on whether another vehicle would go into production in Chattanooga due to the union saga, creating a standstill for the future of Chattanooga and Volkswagen. Tennessee is a Right to Work state, which allows employees to choose whether or not to join/support unions. Chattanooga was the only factory in the Volkswagen Group worldwide to not have any representation, causing the factory to have no representation in Germany. 

(Photo provided by +Volkswagen USA media)

The workers voted no - 53% to 47% - on the existing United Auto Workers union based out of Detroit in entering Chattanooga back in February, but VW continued to encourage the workers to consider assembling some type of workers council, so that the group could move forward in expanding production in Tennessee. After many months of debate following the vote, the UAW created a local union to represent workers for Chattanooga, with Volkswagen Group’s approval. Volkswagen issued a statement that said, “Just like anywhere else in the world, the establishment of a local organization is a matter for the trade union concerned. There is no contract or other formal agreement with UAW on this matter.” The local chapter will be recognized when they can get a majority of the workers to join, but Volkswagen has already began its expansion process at the plant.

Approximately $900 million will be invested in the production of the new SUV, with around $600 million being invested in Tennessee. More money also means more jobs. Approximately 2,000 jobs will be created, in addition to an independent National Research & Planning Center of the Volkswagen Group of America. The R&D facility will identify consumers’ feedback for the U.S. market and expedit the integration for Volkswagen models. This will create opportunities for approximately 200 qualified engineers in Chattanooga. 

With the goal of delivering 800,000 Volkswagen Group vehicles in the US by 2018, production for the new SUV will begin in late 2016. A total of $7 billion is planned to be invested in North America to achieve this goal as well, to allow the brand to reach their Mach 18 sales goal. Not to make any promises, but I would estimate a mid-late arrival at dealerships in 2017 for the highly anticipated new SUV.

Will you be in the market for 3 rows in the future? Do you think Volkswagen will reach its Mach 18 goal? Share your thoughts with us on twitter @StohlmanAuto. Until next time!


Esther Cho
VW Product Specialist
@esther_ch5