Contrary to reports last week, Volkswagen has chosen Chattanooga in Tennessee (immortalised in the Glen Miller ‘choo choo’ song) for its new US factory.
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Reports from Germany said the US$1bn (EUR620m) assembly plant would be able to build 150,000 units a year.
VW CEO Martin Winterkorn was quoted as saying the plant would help boost VW brand sales in the US to 800,000 units by 2018 by building a new mid-size sedan tailored for that market.
Earlier reports suggest VW would base a cheaper car for the US on its current Passat (sourced from Germany) and slot it in between that and the Mexican-built Jetta. Both current models are seen as too expensive in their respective classes.
Tennessee state has called a press conference for late Tuesday (UK time) attended by its governor Phil Bredesen and VW Group America chief Stefan Jacoby, plus the usual roster of state and local officials, for a “joint economic development announcement”.
