VW van 'a plus' for DCX plant
Production to start in '08 Chris Vander Doelen, Windsor Star
Published: Saturday, February 10, 2007
Lost in the blizzard of bad news for DaimlerChrysler Inc. this week was a development which could be a major boon to Windsor's hopes for its long-term automotive future: building Volkswagens.
Amid all the grim news given to CAW executives by DCX executives on Tuesday -- mainly, the loss of 2,000 jobs in Canada -- was confirmation that the Chrysler Group's Windsor Assembly Plant has been chosen to build a 2008 minivan for Volkswagen.
Neither the company nor the union will comment on the decision publicly, but union sources say the confirmation was made by the company this week almost by way of apology for all the tough staffing decisions about to hammer Windsor Assembly.
Volkswagen and the Chrysler Group formally signed a deal to jointly build minivans during the 2006 North American International Auto Show but they wouldn't say where they would be built.
The deal was signed by former Chrysler Group CEO Tom LaSorda and former Chrysler Group COO Wolfgang Bernhard, who was with Volkswagen at the time.
The VW vans will use the same basic vehicle architecture developed for the 2008 Chrysler and Dodge vans which launch this June but it will be powered by a different engine, probably a diesel which may also be available as an option on the higher-trim Chrysler brand vans.
The VW van will also have significant sheet metal differences, a unique interior -- Volkswagens are known for having some of the best interiors in the business -- and its own driving and handling characteristics.
Industry sources say it will be an entirely different vehicle than the Chrysler vans, even if it will be built in the same plant on the same assembly line.
"It's going to be completely a Volkswagen design to keep it distinct from the Chrysler products," said Tony Faria, head of the automotive program at the University of Windsor.
He called the addition of a VW product to WAP's current two-vehicle lineup "a good thing" for the city.
"I know some people don't like it -- they think Windsor should just build minivans. But I think it's a plus to build more vehicles in Windsor," he said.
Windsor Assembly has consistently ranked higher for efficiency and quality in the Harbour Report than its sister plant in St. Louis.
Volkswagen is said to have wanted its vehicles built in the higher-quality plant. The VWs are certain to command a higher price tag than the Dodge vans at least, and could cost more than even the Chrysler versions.
The CAW, mainly Local 444 president Ken Lewenza, fought for Windsor to be chosen both as the "lead plant" to build the new minivan and the plant to build the Volkswagen van.
The union is believed to have given up some demands during the last round of contract negotiations in order to win both those distinctions, but at the gain of improved job security in Windsor and a longer life for the plant.
PAINT SHOP KEY ELEMENT
Construction of the new $608-million paint shop was considered a crucial element of bringing the VW to Windsor. VW didn't consider the quality produced by WAP's old paint shop good enough for its vehicles.
In recent years, the Big Three's paint quality and finishes have become significant issues for buyers.
In an interview this week, Lewenza said Chrysler was extremely pleased by the first full test run of its new Windsor paint shop last week, when the plant build its first pilot version of the 2008 minivan.
"We were very, very delighted with how it went -- everything was perfect," Lewenza said this week. "Management tells me they were very happy with how things went. It got through the paint shop just fine."
The paint shop has been tested dozens of times on empty shells, but last week's "pilot job" was the first completed 2008 van to be built and painted. Hundreds more pilots will be run before production launches.
Lewenza said Windsor workers are "very excited" by the somewhat controversial design of the new van, which they believe will be a winner in the marketplace.
While some critics of the van shown in Detroit last month said they had hoped it would be more radical in design, Lewenza said he and other Chrysler workers "love the van. I think it's fantastic."
Citing industry sources he has consulted, Faria said Volkswagen plans to have WAP build between 10,000 and 20,000 units of its van "until they get a better idea of what sales will be."
The CAW has been told VW hopes to sell about 50,000 units per year -- which would account for about one-seventh of Windsor's maximum annual production of about 360,000 units per year.
Faria said the fact Ford, Mazda and General Motors either already have or intend to stop building minivans may have led VW to raise its sales forecasts.
In 2006, according to unofficial figures compiled by Automotive News, Windsor Assembly produced 291,572 minivans and Chrysler Pacificas, working overtime many Saturdays.
It produced 359,993 vehicles in 2005, according to DesRosiers Automotive consultants, working virtually maximum overtime.
The VW van won't launch until 2008. It will probably be sold only in North America, industry sources say, since Chrysler vans are considered to be too large for most European roads.
VW has a long history of having vehicles built on contract, starting with the first Karrman Ghia in 1955. Recently, Chrysler has contracted Magna-Steyr to build Jeeps, minivans and other vehicles in Austria.
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© The Windsor Star 2007