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Pro- and Anti-Union Forces Wage War of Words over VW Vote

Chattanooga employees conclude vote to join, eschew union today.

by on Feb.14, 2014

Workers at Volkwagen's plant in Chattanooga, Tenn., are wrapping the vote on whether or not they will be represented by the UAW.

Workers at Volkswagen’s assembly plant in Tennessee are scheduled to wrap up three days of voting on whether or not they want to join the United Auto Workers today, but the fight over the outcome continues to rage.

The UAW, which has encountered no opposition from Volkswagen of America’s management, suggested its partisans inside the plant are optimistic about the prospects for a historic victory.

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“As Chattanooga’s Volkswagen workers finish their first day of voting on whether to join the UAW, news coverage continues to reflect the excitement so many of the workers feel at the prospect of unionizing,” the union said in a statement. (more…)

VW Postpones Decision on Tennessee Plant Expansion, 2nd Product

But announcement likely before year-end.

by on Jun.26, 2013

VW says the CrossBlue Concept was designed specifically for the US market.

Volkswagen has some big news for Tennessee – but not the news many had expected.  The German maker has invested another $40 million in the state, about two hours from its sprawling Chattanooga assembly complex, to add a new regional distribution center. But the announcement sidestepped the really big decision many have been expecting.

VW has signaled that it will soon decide whether to add a second product line to the U.S. plant – a move that could lead it to double the size of the Chattanooga facility, expanding capacity to as much as 500,000 units annually.

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“We expect a decision in 2013,” Carsten Kreb, communications director for Volkswagen Group of America Inc. said in an e-mail. But no decision has yet been taken as to whether and, if so, which model this could be built at the plant.

However, it appears almost certain – as TheDetroitBureau.com reported last week – that the Chattanooga plant will eventually produce a version of the CrossBlue Concept, a three-row crossover-utility vehicle that would help expand Volkswagen’s presence in the rapidly expanding CUV market.

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VW Adding Another 800 Jobs in Chattanooga

Maker struggling to meet booming demand.

by on Mar.22, 2012

Workers assemble a 2012 VW Passat at the maker's assembly plant in Chattanooga.

Volkswagen will create another 800 jobs at its new assembly plant in Chattanooga, Tennessee as it pushes to meet soaring demand. That comes on top of previous plans that will now bring a total of 1,000 new workers to the factory that opened only last year.

The Chattanooga plant is the first the German maker has operated in the U.S. in a quarter century and is a critical part of the maker’s commitment to boost sales to record levels by 2018.  But equally significant has been VW’s decision to develop cars specifically for the U.S. market for the first time, including the new Passat sedan being produced in Tennessee.

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Sales of the new Passat got off to a fast start for the 2012 model-year, helping Volkswagen score its best monthly volumes in four decades in February.

“This is a clear sign that the plant ramp-up has been successful and is a validation that the Passat is of the highest quality,” said Frank Fischer, CEO of the Chattanooga operation.

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VW May More Than Triple Size of Chattanooga Plant

From bomb bunker to ground zero in the battle for automotive supremacy.

by on Jun.14, 2011

A nearly-completed 2012 Passat gets ready to roll off the line at VW's new Chattanooga plant.

If some of the early construction crews were a little nervous when work began on the new Volkswagen plant in Chattanooga, three years ago, they had a good reason.  In an irony not lost on members of the team overseeing the project, the mounds dotting the abandoned site had once housed World War II – era bunkers where the U.S. military stored bombs that would eventually be dropped all over Germany – perhaps on the VW plant in Wolfsburg, in fact.

To everyone’s good fortune, the bunkers proved empty.  And the fact is, these days, relations are a lot friendlier between the two countries.  But the sprawling facility is still on a war footing of sorts.

After years of dithering over its role in the U.S. market, Volkswagen has made a commitment to more than double its sales by 2018, to at least 800,000 vehicles annually.  Meanwhile, it hopes to bump its worldwide volumes to more than 8 million, Volkswagen AG CEO Martin Winterkorn declaring, the company “continues to have its sights firmly set on capturing pole position in the automotive industry.”

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Chattanooga will play a critical role in meeting that goal – and that means that the plant that formally opened in the Southern heartland, last month, could very well undergo a significant expansion in the very near future.  Indeed, TheDetroitBureau.com has learned, capacity could readily more than triple, according to a senior manager, “if it were appropriate.”

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