Chattanooga – AUSmotive.com

Volkswagen’s Microbus back from the dead?

The Sydney Morning Herald is reporting that a modified version of Volkswagen’s Microbus could be on the agenda, with the new Chattanooga facility the likely plant to be used for production. The Microbus was launched as a concept in 2001 (see original 2001 press release below) and was originally scheduled for 2005 production before cost cutting measures saw Volkswagen pull the pin. According to the SMH article, a German Volkswagen official claimed, “We’re looking at ways to produce the Microbus that will make it competitive in North America. At the moment there is no firm decision but, with the exchange rate the way it is, there is no way we could entertain building it in Europe.”

Read the Sydney Morning Herald article in full for more detail.

Source: Sydney Morning Herald via autoblog

Volkswagen wants slice of American pie

Volkswagen AG CEO, Prof Martin Winterkorn wants Volkswagen to be the “biggest European carmaker” in the United States, selling as many as 800,000 cars every year by 2018. To help achieve that goal Volkswagen AG announced today they will be building their first manufacturing plant in the United States.

The German giant has approved expenditure of up to 1 billion USD to establish a new facility in Chattanooga, Tennessee. With a capacity of 150,000 vehicles per year the first stage of the new production line is set to open in 2011. The Chattanooga factory will employ around 2000 people and will join the Puebla facility in Mexico as the only other North American production facility for Volkswagen. The Jetta and Beetle are currently built in Mexico, but at this stage, no plans have been revealed as to the models that will be manufactured at the new US plant. Prof Winterkorn understands the importance of a strong presence in the US and this move will help Volkswagen stake a larger claim on the new car market. “The USA market is an important part of our volume strategy and we are now very resolutely accessing that market. Volkswagen will be extremely active there.”

Read Volkswagen’s official announcement after the jump.