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Volkswagen to produce new CrossBlue-based midsize SUV in Chattanooga; $900M investment
14 July 2014
|The new mid-size SUV is based on the CrossBlue concept. Click to enlarge.|
The Board of Directors of Volkswagen Group of America has decided to award the production of its new midsize SUV to the Chattanooga plant in Tennessee. The Group will be investing a total of approximately US$900 million (€643 million) in the production of the newly developed, seven-passenger SUV, creating 2,000 additional jobs in the US. About US$600 million (€432 million) will be invested in Tennessee.
The midsize SUV, which is based on the MQB-based CrossBlue plug-in hybrid concept vehicle, was developed especially for the North American market. The CrossBlue made its global debut at the 2013 North American International Auto Show in Detroit. (Earlier post.)
Built off of the MQB Modular Transverse Matrix components set (earlier post), the plug-in CrossBlue concept offered a manufacturer-estimated 35 mpg (6.72 l/100km) combined (37 mpg highway and 33 mpg city), 89 mpge (2.64 l/100km equivalent) in electric mode, and an all-electric range of up to 14 miles (22.5 km).
Being based on the MQB, the new mid-size SUV will be able to offer a range of powertrain options, depending upon market demand.
The United States of America is and will remain one of the most important markets for Volkswagen. Over the past few years, we have achieved a lot there. We are now launching the second phase of the Volkswagen campaign in the US. With the midsize SUV, the expansion of the Chattanooga plant and the new development center, the focus is on the wishes of the US customer. This is also a strong signal for the US as an industrial and automobile production location. The Volkswagen brand is going on the attack again in America.—Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft
Apart from investing in the production of a new vehicle, the Chattanooga location is to receive a new, independent National Research & Development and Planning Center of the Volkswagen Group of America for project coordination in the North American market. The objective is to identify customers’ feedback in the market and to integrate them more expeditiously into existing and planned vehicle models.
This will lead to the creation of approximately 200 qualified engineers working in Chattanooga. This decision is another element in the investment program that the Volkswagen Group has launched in the region. From 2014 to 2018, the Volkswagen Group will be investing more than US$7 billion in the US and Mexico. It is Volkswagen’s goal to deliver 800,000 vehicles in the US by 2018.
At Chattanooga, the new SUV will be integrated into existing plant structures. Existing areas in production will be used for the assembly of the midsize SUV. A total floor space of 50,000 m² (approx. 538,000 sq ft) will be added to the existing production facility.
Volkswagen also announced that the Chairman of the Group Works Council of Volkswagen, Bernd Osterloh, will join the Board of Directors of Volkswagen Group of America, Inc.
It is important for us that our colleagues in the U.S. know that we also care about the production site and the employment in Chattanooga. I am looking forward to my work on the Board. I am determined to uphold the interests of Volkswagen employees in Chattanooga. The North American market offers considerable opportunities; in my opinion, these have not been pursued with sufficient consistency in the past. With today’s decision to produce the midsize SUV in the USA, we are taking a key step.—Bernd Osterloh
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