Volkswagen Looks to North America To Save Production Costs

Industry News

With the just opened VW plant in Chattanooga, Tennessee, Volkswagen is quickly taking advantage of its new North American production operation. Not only will the new plant provide a lot of jobs for the local economy, but VW is already looking at ways to cut production costs with their current lineup. A new report from a German business magazine claims that the automaker wants to produce its Tiguan SUV at the plant to reduce costs and to protect itself against fluctuation of exchange rates.

The other possibility Volkswagen is considering is to build the Tiguan at their Pueblo, Mexico plant, which has been producing the Beetle and the new Jetta. The new Chattanooga plant cost $1 billion to build and has a capacity to produce up to 150,000 vehicles annually. The North American market Passat will be built there. However, no final decision has yet been made.

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