Volkswagen’s announcement of the building of a new Tennessee plant is probably the best, and most intelligent, move the company has made in the North American market in a long time. Ever since its plant in Pennsylvania closed a few years ago, VW has not had one manufacturing plant in the U.S. This has put the company at a great disadvantage as they are at the mercy of the euro to dollar exchange rate.
With the opening of this plant (which will produce a North American-specific sedan to replace the Jetta), it symbolizes VW’s commitment to the U.S. market and positions itself to better offer Americans and Canadians what they want at an affordable price to own and produce. It also creates jobs for Americans in a floudering economy, while simultaneously creating a greater American following for the brand.
Now Volkswagen has again proven its commitment by promising that the parts content they use at the Tennessee plant will be more than 80% sourced here in North America. They plan on doing this by establishing a suppliers park near the site of the new plant. This supplier park could also eventually supply other VW markets in time of need.
Plans also include the "local production of engines, transmissions and other key components," said Volkswagen Group production chief Jochem Heizmann.
With a newfound commitment to the North American markets, Volkswagen will ensure its ongoing success and might soon find itself the world’s largest car maker, beating General Motors. The reliance on our North American auto infrastructure for key manufacturing components will be a welcome boost for our economy, as well as a healthy boost for VW’s image here in the states.
Source: Automotive News