It is the largest VW Passat model since its 1987 debut.
Volkswagen’s Chattanooga factory has an annual economic impact of $643 million creating 12,400 full-time jobs in the region, according to a new study presented at the Center for Automotive Research’s Management Briefing Seminar in Traverse City, Michigan today.
VW has ambitious plans promising that one million of the new generation U.S. built Passat models will be sold by 2018 after the he plant also appears to be a logical choice for building a new Audi model, possibly an SUV where assembly can be split between VW and Audi variants. Audi is an important contributor to sales and, above all, profitability of the Volkswagen Group worldwide. Since 1987, more than 700,000 Passat sedans have been sold in the U.S. The Japanese Big Three in total sell that many of their similarly sized family cars – Camry, Altima, and Accord – each year.
A recent University of Tennessee at Knoxville study shows that Volkswagen Chattanooga activities, discussed by Frank Fischer, CEO and Chairman of the plant, also claims that state and local tax revenue increased by $53.5 million annually.
The Chattanooga plant builds the Passat sedan, which now offers four engine options– the new 1.8-liter, 2.5-liter gasoline, 3.6-liter gasoline engines and a 2-liter diesel.
Chattanooga has a body shop, paint shop, assembly, supplier park, technical center, Volkswagen Academy and a solar park. The plant was a $1 billion investment and is capable of producing 150,000 cars a year, Fischer said. (Read AutoInformed on: Volkswagen Now Operating Largest Solar Power “Park” in Tennessee)
More than 85% of the production materials and parts are sourced in North America. Fischer added that it is important for Volkswagen to have collaboration and integration with suppliers to track parts and receive feedback about developing the products for the Passat.
Currently, the Chattanooga facility employs 2,500 people. More than 37 nationalities are represented among the team members, and education levels vary. Team members were trained in Common Core, Production System, Fundamental Skills, Profits and On-the-Job training, Fischer said.
See also:
- Volkswagen Now Operating Largest Solar Power “Park” in Tennessee
- U.S. Built Volkswagen Passat Priced from $20,765 to $33,720
- Volkswagen Opens New Passat Plant in Tennessee
