Volkswagen has halted production of the Passat TDI at its Tennessee plant, because if you can’t sell ’em you may as well stop building ’em.
The stop-order comes as the automaker is ramping-up production of the new Passat in Chattanooga for sales set to begin later this month or in early December, according to Automotive News, and is yet another result of the ongoing diesel emissions scandal.
Volkswagen will still invest $900 million in its Chattanooga, Tennessee plant despite company-wide cost cutting from its diesel disaster, the automaker announced Thursday.
The company had long planned on a mid-size, three-row SUV to compete in the U.S.. However, those plans were upended when the Environmental Protection Agency announced in September that Volkswagen’s diesels had been illegally polluting, and the company shed billions from its value in following days.
The three-row SUV, which may follow closely Volkswagen’s CrossBlue Concept, was announced last year for the Tennessee plant. Volkswagen said it would begin building the SUV at the end of 2016. (Read More…)
The United Auto Workers union could make its first real break into the southern U.S. by unionizing 165 “skilled trade” maintenance workers at Volkswagen’s Chattanooga plant, reported the Associated Press (via The Detroit News).
UAW Local 42 represents some workers at Volkswagen Chattanooga but does not have exclusive bargaining rights at the plant. A new election for union representation, which is being requested by maintenance workers at the plant, would give Local 42 exclusive bargaining rights for those workers.
The effort is part of a “renewed collective bargaining push” unrelated to the diesel emissions scandal, union officials told the AP.
The last election saw the UAW defeated in a 712-626 vote.
According to one Chattanooga factory worker on the TDI Club forum, Volkswagen is ramping up production of the new Passat TDI despite not being certified by the Environmental Protection Agency regarding its emissions.
The new 2016 Passat, which will launch later this year, is equipped with three different engines — a 1.8-liter turbocharged and a 3.6-liter V-6 gasoline engines, and a 2-liter diesel engine. The poster said those cars already built and equipped with the TDI engine are missing significant portions of their front fascia as they come off the assembly line.
The Passats in question are missing headlights, grilles and front bumpers, said the poster.
Volkswagen USA CEO Michael Horn says the automaker expects “limited growth” until its new SUVs arrive, while one of its suppliers sets up shop in Tennessee.
Volkswagen announced Thursday it would deny the UAW’s request to be the sole representative of the automaker’s Chattanooga, Tenn. plant.
As Volkswagen plans to expand in Chattanooga and Puebla, the Canadian government is loaning €400 million ($433.8 million USD) to the German automaker in exchange for possible future supplier business.
Volkswagen is launching an engineering center at its factory in Chattanooga, Tenn. to help improve the automaker’s fortunes in the United States.
As part of a new arrangement, Volkswagen is allowing more than one group to represent VW workers at its plant at Chattanooga, Tennessee. And while the UAW has managed to secure that privilege, VW is also allowing another, small group to represent workers.
After throwing enthusiasts a few wagon-shaped bones at the Los Angeles Auto Show, Volkswagen is set to debut the long-roof product that really matters for the auto maker’s American division: a crossover.