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VW Lays Out Plans for Turnaround; Won’t Cut Back at Chattanooga Plant

New CEO Mueller outlines five steps to get past diesel emissions scandal.

by on Oct.30, 2015

VW will build a version of its CrossBlue Concept when it completes the Chattanooga plant expansion.

Despite a freeze on sales of most of its diesel-powered cars, and a series of lawsuits that could cost it billions of dollars, Volkswagen says it won’t scale back an ambitious plan to expand its Chattanooga assembly plant, a move that will cost it $900 million to add production of a new SUV, adding 2,000 new jobs in the process.

“The United States continues to be one of the most important markets for Volkswagen, and our commitment to Chattanooga and the state of Tennessee is clear proof of that,” said Michael Horn, president and CEO of Volkswagen Group of America.

Beyond the Headlines!

There had been speculation that VW might scale back the project in the wake of a scandal triggered by revelations it had cheated on emissions tests by installing a so-called “defeat device” in 482,000 diesel-powered vehicles sold in the U.S., and 11 million sold worldwide. The maker has already set aside $7.3 billion to cover the cost of the scandal, and Matthias Mueller, CEO of parent Volkswagen AG, has just outlined a five-step recovery plan.

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