Photo: Volkswagen
The Volkswagen Group announced an operating loss of €3.48 billion ($3.86 billion) in the third quarter, after setting aside a huge contingent sum to fix the engines affected by the Dieselgate scandal. The new CEO Matthias Muller has already announced plans to cut some of the 300 cars sold across more than one dozen brands, as well as severely cut expansion plans.
Despite this, the Germans have just reaffirmed their commitment to invest $900 million in the Chattanooga factory, the biggest in North America. All this money is needed to prepare for the arrival of what they describe as an all-new midsize SUV designed for the US market.
While no technical details are available at the moment, everybody is expecting to see a bulky 7-seat version of the second-generation Tiguan compact model that was unveiled in Frankfurt. However, the latest press release says a 3-row Tiguan will be assembled in Puebla/Mexico in 2017. So this is like an entirely different pumpkin pie we're dealing with.
"This clear commitment to the Chattanooga location confirms our engagement in North America and our confidence in the local team. More than ever, we must and will focus on the specific wishes of our U.S. customers so that we can offer them vehicles that are not only convincing, but also inspirational. Step by step, that is how we want to win back trust in the Volkswagen brand," Michael Horn, President and CEO of Volkswagen Group of America, said. "The United States of America is still one of Volkswagen's most important markets."
Apart from making a new SUV and adding 2,000 jobs, Volkswagen also wants to open a National Research & Development and Planning Center in Chattanooga. This will be given the task of turning future Volkswagens into cars that Americans want to buy.
It's kind of a big deal, as Tennessee currently only has about 2,400 people making the Passat. So Volkswagen probably expects this new midsize SUV to be an overnight success. If the 2016 Honda Pilot is anything to go by, they could be right.
While no technical details are available at the moment, everybody is expecting to see a bulky 7-seat version of the second-generation Tiguan compact model that was unveiled in Frankfurt. However, the latest press release says a 3-row Tiguan will be assembled in Puebla/Mexico in 2017. So this is like an entirely different pumpkin pie we're dealing with.
"This clear commitment to the Chattanooga location confirms our engagement in North America and our confidence in the local team. More than ever, we must and will focus on the specific wishes of our U.S. customers so that we can offer them vehicles that are not only convincing, but also inspirational. Step by step, that is how we want to win back trust in the Volkswagen brand," Michael Horn, President and CEO of Volkswagen Group of America, said. "The United States of America is still one of Volkswagen's most important markets."
Apart from making a new SUV and adding 2,000 jobs, Volkswagen also wants to open a National Research & Development and Planning Center in Chattanooga. This will be given the task of turning future Volkswagens into cars that Americans want to buy.
It's kind of a big deal, as Tennessee currently only has about 2,400 people making the Passat. So Volkswagen probably expects this new midsize SUV to be an overnight success. If the 2016 Honda Pilot is anything to go by, they could be right.
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