After a quarter-century absence began Volkswagen with the production of cars in the United States this week again. The operation is expected to be about 150,000 copies of the German manufacturer $1 billion in Chattanooga, Tennessee, New Passat sedan by the time it gets full roll-out start next year.
The work is to serve as a basis in Volkswagen more than doubled goal long stagnant U.S. sales. In turn, could that help manufacturers worldwide to reach his even more ambitious target to the largest automaker Decade to the end of the year.
"The Volkswagen Group is finally as a local manufacturer in the United States, as" Martin Winterkorn, CEO of Volkswagen AG and the man, who was announced for the new plant to kick off.
In the years up to the VW was to the first energy shocks of the 1970s, the brand name most likely, however, if someone mentioned imports to come. The original beetle sold all of its competitors, and at one point, the German manufacturer helped capture accounted for 7 percent of the US market.
With the aim of the domestic manufacturers are calling for, VW opened a plant in Westmoreland, PA, and began preparing a second factory in suburban Detroit. But the twin crises of the 1970s, rather than increase demand for Volkswagen, opened the door for his Asian rivals. Demand began break, especially if focus of fuel economy on quality, VW's Achilles heel moved Japanese makers such as Toyota.
Sales plunge, decided, before the open, the second plant scuttle the manufacturer. Then closed it Westmoreland, where constant fighting with the Union ran up wages and prevent the implementation of the necessary steps to improve the quality.
In the early 1990s by Germany and Mexico, VW slipped with his products, sales below 100,000 units per year less than 1 percent of the market-leading, the manufacturer, think seriously about abandoning the US market. New CEO Ferdinand Piech, now Chairman of VWAG of the Supervisory Board decided to stick it out. Despite the best efforts of the producers it could come close seen on the volumes in the 1960s and early 1970s.
One of the reasons, said analyst Dan Gorrell of the consulting is a company car Strategem, the VW "really cars for the American market building not." It would not even the gearing of the transfers according to the slower speeds of U.S. highways change compared to the German Autobahn.
Started three years ago change when VW announced an official 10-year project of the VW brand sales boosting 800,000 units per year to the - with luxury brand Audi, the sum of expected another 200,000 units per year to.
The first real signs of change came with the introduction of the new, "Americanization" Jetta for the 2011 model year. The base model, at $15,995, came in thousands as the start of the price of the previous line of Jetta. Analyst Aaron Bragman consulting calls IHS company's strategy, the brakes "risky" because VW steps when switching levels back took the new model drum, rather than disc, "non German".
Nevertheless, demand was strong, VW total sales boost this year's help.
With the introduction of another model, the real test come specifically for the United States 2012 developed Passat. The American version of the medium-sized sedan is introduced in most dimensions greater than those in Europe.
But as with the Jetta it cheaper than the model replaced. The New Passat is expected to take a low price of $20,000. This is about $8,000 less than the current version, that fusion to do competitive with Asian and Detroit models such as the Toyota Camry and Ford.
Cut, much of the cost of a vehicle which is not easy. Having no car ship in from Europe reduced the impact of the skewed exchange rates, but VW also should save as $500 or more per vehicle simply by paying $25 an hour for his Tennessee - workers, including wages and benefits. That has less than half of what workers manufacturer in one big three plant or one of the so-called Japanese "transplantation" assembly lines costs.
VW plans, their wages in the next three years by a third bring boost total labor costs $38 an hour, but this is still significantly less than much of its competition.
In this week dedication VW officials proposed within a year that they decide whether he is a second U.S. plant, that one be build for the brand Audi. The brand has long struggle leaders like Mercedes-Benz to BMW in the United States in question, although Audi now is a definitive rival in most of the rest of the world. With say a factory in the States, company officials, Audi may be the bump, which required it to American sales, only in the last year finally 100,000 surpassed to double that.
VWAG's emphasis on the United States is also as it its efforts in emerging markets, particularly China, steps where it is one of the top manufacturers. Japanese brands have a much harder time are, had a reason VW Winterkorn remains confident that his company can displace Toyota as the world's largest car manufacturer in this decade.
In fact earlier than expected, could, with some analysts done warning, that, that this year earthquake Toyota enough slip to third parties in the global sales contests, behind General Motors and Volkswagen production costs could. But the German not content with a short-term temporary victory.
So could determine their success in Chattanooga their long-term place in the industry hierarchy.
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