German Car Zone

In the rest of the world, Volkswagen has one of the widest and most interesting arrays of engines in the automotive industry. Ranging petrol to diesel, from sub-1L three cylinders to monstrous V10s, V12s and W16s, in Europe and elsewhere, the company’s paltry line of four and five and six-cylinder engines in the U.S. seems rather meager in comparison. But that’s about to change with the construction of the new plant in Chattanooga, Tennessee, especially on the diesel and hybrid front.

The U.S. may not see the manufacture of some of the VW Group’s more exotic engines, but those are available for import anyway. The exciting additions will be a range of diesels and hybrids to improve fuel economy and keep performance within acceptable boundaries, reports Automotive News.

The new engines will also be built in the U.S. to fully leverage the currency advantage of the new factory. Importation from Europe might have better short-term costs compared to tooling up an engine plant, but over the long run, the price advantage stacks up in favor of locally built products.

It’s still too early to determine which engines and hybrid systems might see U.S. production, but with the pending reintroduction of the Jetta TDI SportWagen and even Polo sale in North America, the possibilities include a range of small and efficient four-cylinders up to some powerful V6s.

There’s also potential in sourcing transmissions from VW’s North American operations as well. Currently most of what is used in VW’s Mexican operations originates in Germany, but the company’s executives are now considering production of a transmission plant, probably in Mexico, in the future, according to VW of Mexico vice president of corporate relations and strategy Thomas Karig. That information dovetails nicely with VW CEO Martin Winterkorn’s announcement earlier this year of a planned $3 billion investment in its Mexican facilities to optimize capacity and output.


Source: Motor Authority >> VW could build diesels and hybrids in the U.S.

If there is one company that can easily gain from high gas prices in America, it's VW. I am glad they are now taking a vested interest in the market. It's about time!

It was just announced that my hometown of Chattanooga is getting the new VW plant. Cool!!

Wow cool deal, I'm sure that it will boost your local economy eh?

Indeed. Tennessee had already lost out on a number of plants including the Mercedes plant in Vance Alabama. I beleive Tennessee finished 2nd.

The VW should bring a lot of jobs to East Tennessee. Plus, Chattanooga is a hip little progressive town.