Volkswagen will still invest $900 million in its Chattanooga, Tennessee plant despite company-wide cost cutting from its diesel disaster, the automaker announced Thursday.
The company had long planned on a mid-size, three-row SUV to compete in the U.S.. However, those plans were upended when the Environmental Protection Agency announced in September that Volkswagen’s diesels had been illegally polluting, and the company shed billions from its value in following days.
The three-row SUV, which may follow closely Volkswagen’s CrossBlue Concept, was announced last year for the Tennessee plant. Volkswagen said it would begin building the SUV at the end of 2016.
This week, Volkswagen announced its plan for restructuring operations and emerging from the diesel scandal that’s cost the company billions so far in depleted stock value. In the third quarter, Volkswagen set aside more than $7 billion to pay for the 11 million affected cars worldwide, but many analysts say it’s likely that won’t be enough to cover the costs.
“The United States continues to be one of the most important markets for Volkswagen, and our commitment to Chattanooga and the state of Tennessee is clear proof of that,” Michael Horn, president and CEO, Volkswagen Group of America said in a statement. “The Chattanooga plant is a core part of our strategy in North America. Here and throughout the region, we will work toward meeting the demands of our U.S. customers and regaining their trust in the Volkswagen brand.”
The company said it would shed non-essential plans and models, and delay its restructuring of its operations in North America until it fixed its diesel cars.
According to a statement, Volkswagen announced it would create 2,000 jobs in addition to the plans for the SUV. In Tennessee alone, Volkswagen said it would spend $600 million in plant improvements.
Is that a GMC Acadia with a VW logo and tweaked front clip?
Damn. I thought the two beltlines would be way different so I checked.. they’re not. Good catch.
Yet somehow VW made their Acadia knock off look slightly uglier and a lot cheaper.
To save money, just buy up a bunch of +120k-mile Acadias, run them through a carwash with the windows down a few times so water jets into the door panels real good, peel off some of the headliner edges, clock the odometer to ‘0’, apply the VW logo and you have a market-ready crossover with all the expected build quality and durability VW buyers are used to.
You win the Internet.
To my eye, most Volkswagen models look like a variation of the Golf hatchback.
Not surprised by this one bit. Must keep the elected officials in the great state of Tennessee in VW’s good graces to smooth over little issues like fines by the EPA. “You want to fine my constituent how much EPA? Well, there is that issue of funding your agency for the next fiscal year coming up for a vote.”
This.
CrossBlue? We ran out of obscure regional subsaharan weather phenomena already?
I was hoping for Volkswagen Bedouin, Bushmen, or Pygmy.
I’m surprised, since they might need that $0.9 billion for repairs & fines.
But seriously, this has to be a relief to the Chattanooga workers.
VW CrossBlue? More aptly, VW needs Blue Cross…
Was hoping for VW Far Tare. Or VW Gaspe.