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Volkswagen: Tennessee Plant is a Go

2007 Volkswagen Passat Wolfsburg Edition

2007 Volkswagen Passat Wolfsburg Edition

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With all the news of plants closing their doors and people getting laid off, Volkswagen has shown that they are not participating in the current recession. The company announced to dealers at the annual NADA dealers' convention that they are still on track to start production of a new mid-size sedan in Chattanooga, Tennessee, by early 2011.

Automotive News reports that many dealers had expressed concern over a possible delay or cancellation of the new factory due to the slumping car market here.  VW is looking further forward than next quarter and realizes that they need to have more production capacity in North America in order to supply this market, if they ever intend to sell cars on the level Toyota or Honda do.

This plant will ensure that we don't have to worry about the fluctuations of the euro to get a decent mid-size VW at a good price. If the new sedan does better than the current Passat, VW is sure to add more products--maybe a mid-size crossover?--swiftly.

[Source: Automotive News]

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