A new Volkswagen plant in Chattanooga, Tenn. has been announced.
The carmaker will spend $900 million to create a new model of the plant which will create 2,000 jobs. Volkswagen is adding a seven-seat midsized SUV at Chattanooga with production starting in late 2016.
The company is hoping to reverse its recent fortunes with the new Volkswagen plant as the company’s US sales at the core VW brand declined 13% last year. Volkswagen is hoping to sell 800,000 VW-brand vehicles by 2018 despite only selling 408,000 last year.
“The VW brand has the substance to be successful in the US but so far management hasn’t delivered the right product for a very long time,” said Volkswagen head of automotive research Arndt Ellinghorst. “This could change with the new SUV but it will take time and until then the brand will more likely lose money in the States.”
Volkswagen staff recently voted 53-47 against joining the United Auto Workers’ union.
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