VW’s Billion $USD Investment in the US

Discussion in 'In the News' started by xcel, Jun 6, 2011.

  1. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    [​IMG] New Plant in TN was specifically slated to build the new and soon to be award winning 2012 VW Passat.

    [​IMG]Wayne Gerdes - CleanMPG - June 6, 2011

    2012 VW Passat - In TDI form, few competitors are even close to its mpg capability let alone its reasonable starting price at just $25,995.

    Prof. Dr. Martin Winterkorn, Chairman of the Board of Volkswagen, and the U.S. Secretary of Transportation Ray LaHood inaugurated the new Volkswagen plant in Chattanooga, TN late last month and in doing so, ushered in a new era for VW in the US. Currently, the plant is setup to produce up to 150,000 2012 Passat's per year with the ability to expand to as many as three different production models and upwards of 500,000 vehicles with future expansion. In addition, the new VW plant sets new standards in terms of sustainable, resource-efficient production with the new Passat having a domestically sourced content of 85 percent!

    Local Investments

    More than $686 million in local and Tennessean contracts have been awarded to date, including: more than $379 million to Tennessee and Chattanooga-area construction contractors and subcontractors awarded by the city, state and Volkswagen; and $307 million in annual contracts with local and state parts suppliers. Another $230 million in construction contracts are planned over the next 20 years. More than five percent of suppliers will be minority- and woman-owned by start of production, with the goal of 10 percent by 2015.

    The Tennessee plant currently provides more than 1,800 jobs and when at full capacity, will include over 2,000 full time positions and nearly 9,500 indirect jobs with an estimated $12 billion in economic growth for the region.

    Volkswagen’s new Chattanooga plant is part of a $4 billion investment by VW in the U.S. market. The environmentally friendly facility includes a revolutionary paint shop that significantly reduces emissions. A state-of-the art $40 million employee training center ensures adherence to VW’s exacting quality standards. Along with the financial and quality commitment, VW’s American workforce is expanding to more than 4,500 employees.

    2012 VW Passat’s rolling down the new assembly line

    [​IMG]
    Final assembly before water testing, final inspections and even a final road course test on each and every vehicle.​

    Prof. Dr. Martin Winterkorn, Chairman of the Board of Volkswagen:
    Since plant construction began in 2009, an automobile plant including body shop, paint shop, assembly facility, technical testing center, academy for the initial and advanced training of employees, and a supplier park with eight companies has been built on a 1,400 acre site in Chattanooga.

    VW’s new facility will be among the world's most advanced and environmentally compatible automobile plants. The new plant is in line with the highest requirements of the U.S. LEED (Leadership in Energy and Environmental Design) standard, which lays down stringent provisions for the sustainable, environmentally compatible construction of buildings.

    Green Plant

    The Chattanooga plant on the banks of the Tennessee River is the latest of VW’s green investments in America with environmental responsibility and sustainability reflected in the plant’s features:
    • Responsible Land Re-Use: The plant is under construction at Enterprise South, previously a Volunteer Army Ammunition Plant, now fully remediated and certified by the Tennessee Valley Authority. VW partnered with the state and city to distribute saplings for every tree displaced by construction.

    • Energy Efficiency: Using the most efficient electric motors available for automated machinery, advanced laser welding technology, smart ventilation systems, improved air circulators and deflectors, air-to-air heat exchangers, continuous line lighting system with T5 bulbs and outside high pressure sodium vapor lights with mirror technology will save the annual energy use of 1,880 households.

    • Wise Water Use: Meander creeks will collect, filter and recycle storm water to be used in a cooling pond and restrooms, helping save 359,999 gallons of fresh water, enough to meet the needs of almost 22 households each year.

    • Groundwater, waste management and sewage systems meet stringent LEED standards to avoid flash floods originating from the plant, manage runoff and regulate the water supply.

    • Emissions Reductions: A newly engineered base coat reduces vehicle paint drying time and CO2 emissions by 20 percent. Environmentally friendly roofing of thermoplastic polyolefins saves energy by improving weather resistance and resilience. Smart insulation in the plant walls is six-inch mineral rock wool panel for energy savings with no VOCs or CFCs — and it’s 100 percent recyclable. The facility is also a completely tobacco-free workplace.
    One of the key measures taken at the plant is the use of a painting process without any filler, which reduces CO2 emissions by about 20 percent. Water efficiency at the plant also meets the most stringent requirements.

    Volkswagen has built the world's first automobile paint shop to use a waterless separation process for topcoat application. Thanks to the use of collected rainwater, water consumption at the Chattanooga plant is also considerably lower than at facilities of a comparable size. In addition, the U.S. plant is the first Volkswagen facility to rely entirely on energy-saving LED systems for outdoor lighting. The production buildings and offices are also equipped only with energy-saving lamps controlled by motion sensors. The entire lighting system of the plant uses some 20 percent less energy than a comparable facility.

    The United States is one of the world’s largest and most important automobile markets. The new U.S. plant in Chattanooga lays the foundations for VW to meet its target of boosting Group sales in the United States to more than a million vehicles per year by 2018 at the same time as winning a market share of about six percent for the Volkswagen Group including VW, Audi and Porsche as a whole.

    The U.S. Passat was specifically tailored to meet the needs of the American consumer and is a key element of VW's current and future product offensive in North America. Better yet, it is the right car at the right time. And most important to us, preliminary expectations are that as high as thirty percent of the new Passat's will be 2.0L TDI turbo-diesels powered making more than just its production environmentally friendly :)
     
  2. herm

    herm Well-Known Member

    Very nice, hopefully the Passat will achieve the popularity of the Impala.. and they expect a 30% uptake on the diesel option.
     
  3. dr61

    dr61 Well-Known Member

    They need to do a wagon version; sedans are out of the question for me.
     
  4. chilimac02

    chilimac02 Bible Professor & Minister

    I would love a passat wagon. I was just telling my father in law that Honda screwed up by offering the Accord Crosstour instead of an Accord wagon that seats 7 (if needed).
     
  5. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi All:

    Along with being the only Platinum LEED certified automobile manufacturing facility on the planet -- VW Earns Platinum While Honda and GM Earn Gold -- VW's only US manufacturing facility located in Chattanooga, TN continues to provide jobs for TN residents with yet another just announced plan for further investment in the state.

    VW Set to Open Distribution Facility in Roane County to Support Continued Growth in the US

    Volkswagen today announced that it will invest $40 million to build a warehouse in Roane County, TN for distributing domestic auto parts for the Chattanooga-made Passat. The 400,000-square-foot facility is expected to open by spring 2013 and will employ up to 45 people by 2016.

    Addressing the need for increased infrastructure, the facility will begin as a redistribution center to service warehouses and will later expand to include a parts distribution center. The redistribution Master Depot will support the US, Canada and Mexico. The parts distribution operation will improve service parts delivery times to over 100 dealers in the surrounding regions.

    Wayne
     
  6. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi All:

    I have caught 2 of the 4 episodes of “America Revealed” on PBSD and the latest installment, Episode 4 - Made in the USA” was an excellent over view of what we make and what we ship.

    One of the highlights was an overview of VW’s Chattanooga manufacturing facility producing the new 2012 VW Passat. It is worth your time so consider watching this episode in particular on a PBS station in your locale..

    Episode 4 - Made in the USA

    American manufacturing has undergone a massive revolution over the past 20 years. Despite all the gloom and doom, America is actually the number one manufacturing nation on earth. Yul Kwon, the PBS series presenter, crosses the nation looking at traditional and not-so traditional types of manufacturing.

    Along the way, he meets the men and women who create the world’s best and most iconic products, engineers who are reinventing the American auto industry, steelworkers who brave intense heat to accommodate radical new ideas about recycling, and engineers who are re-imagining the microchip. He visits one of the most innovative manufacturers on earth: a small start-up company that is building personalized robots – machines that may one day reshape our homes and offices, driving our revolution further forward.

    Yul further explores the emerging notion that manufacturing itself is changing from a system based on the movement and assembly of raw materials like steel and plastic to a system in which ideas and information are the raw materials of a new economy based around communications and social connections via companies like Facebook and Google.

    Wayne
     
  7. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi All:

    The greenest manufacturing facility in the world provides almost 2/3 of a $billion USD in annual economic activity for the state of Tennessee.

    Volkswagen Chattanooga Annual Economic Impact On Tennessee: $643 Million

    A University of Tennessee at Knoxville (UTK) research study released yesterday shows that Volkswagen Chattanooga activities created 12,400 full-time jobs at Volkswagen, at suppliers and in the economy are responsible for $643.1 million in annual income and increase state and local tax revenue by $53.5 million annually.

    The UTK study states that of the 12,400 full-time jobs the Chattanooga plant directly employs 2,415 employees and indirectly employs 9,985 employees through the suppliers and other companies where Volkswagen spends its earnings and multiplier effects. The company has attracted 17 supplier companies to the area.

    Of the $643.1 million that Volkswagen pays, $159.2 million is paid to direct Volkswagen employees and indirect employed account for $483.9 million in income due to multiplier effects.

    The study also reported that all jobs paid directly by Volkswagen Chattanooga earn on average at least $50,000 in 2012, which includes bonus, benefits and overtime.

    The study estimates that the Volkswagen plant increases state and local tax revenues by $53.5 million annually. State revenue tax is estimated to increase $31.2 million, and local revenue tax is expected to increase by $22.3 million.

    Wayne
     
  8. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi All:

    12,400 Jobs and it is not over yet...

    VWs Chattanooga factory, and the Passat that is built there, have been a corporate success story for the brand and a local economic success story for Tennessee. According to the latest economic impact study, Volkswagen Chattanooga has an annual economic impact of $643 million and has created 12,400 full-time jobs in the region.

    Frank Fischer, CEO and Chairman of the Chattanooga plant, highlighted his ‘four pillars’ approach to the project during the Center for Automotive Research’s Management Briefing Seminar in Traverse City, Mich. today. Fischer’s pillars are products, plant, parts and most importantly, people.

    A recent University of Tennessee at Knoxville (UTK) research study shows that Volkswagen Chattanooga activities created 12,400 full-time jobs at Volkswagen, with suppliers and in the economy are responsible for $643.1 million in annual income increased state and local tax revenue by $53.5 million annually.

    Products.The Chattanooga plant builds the Passat sedan, which now offers four engine options-- the new 1.8 L TSI, 2.5 L gasoline, 3.6 L V6 gasoline and the record-setting 2.0 L TDI Turbo Diesel.

    Fischer said the Passat was designed for the North American market and has proved to be of the highest quality, winning numerous awards including the 2012 Motor Trend Car of the Year, KBB.com’s Top Family Car and was the highest ranked Midsize Car in the 2012 and 2013 JD Power APEAL study.

    Plant. Volkswagen Chattanooga is the world’s first and only factory to be LEED (Leadership in Energy and Environmental Design) Platinum-certified by the US Green Building Council. The factory consists of a body shop, paint shop, assembly, supplier park, technical center, Volkswagen Academy and solar park. The plant was a $1 billion investment and is capable of producing 150,000 cars a year, Fischer said.

    Parts. More than 85% of the production materials and parts are sourced in North America. Fischer added that it is important for Volkswagen to have close collaboration and integration with the suppliers to track parts and receive continuous feedback about developing the products for the Passat.

    People. Currently, the Chattanooga facility employs 2,500 people. More than 37 nationalities are represented among the team members, and education levels vary. Team members were trained in Common Core, Production System, Fundamental Skills, Profi-Room and On-the-Job training.
     
  9. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi All:

    Volkswagen’s Passat Factory in Chattanooga is the Global Benchmark For Future VW Manufacturing Operations

    Volkswagen’s manufacturing facility in Chattanooga, TN will serve as the blueprint for all new VW plants worldwide and has become a benchmark for environmental efficiency for current existing plants. This was the key message of Dr. Jan Spies, Volkswagen AG head of factory planning, at the Center for Automotive Research’s Management Briefing Seminar in Traverse City, MI yesterday.

    Spies noted that Volkswagen is aiming to reduce its energy consumption by 25 percent and increase the renewable energy it uses by 2018, as part of the global Volkswagen Think Blue program. This applies especially to energy consumption, waste volumes, solvent emissions, water consumption and carbon dioxide emissions. As Volkswagen AG builds new plants – currently seven in China and an Audi plant in Mexico - designers are using the Chattanooga plant as a sample, Spies said.

    Spies discussed the Passat paint shop, which has one less spray booth and dryer than has been customary in traditional paint shops and doesn't need to use a primer coat of paint. This process by itself reduces energy consumption by more than 20 percent. Volkswagen Chattanooga was the first plant to implement this energy-efficient paint process, and the method is being copied in Volkswagen plants around the world. Other energy efficient highlights of the plan include: The capturing of rainwater to cool equipment and flush toilets, six-inch insulation, and a newly added field of 33,600 solar panels that supply about 12 percent of the factory's power.

    The Volkswagen plant in Chattanooga was the first automobile factory worldwide to receive platinum LEED (Leadership in Energy and Environmental Design) certification by the US Green Building Council. Platinum certification confirms compliance with the most demanding standards for sustainable, environmentally compatible production.

    Sustainable, efficient production is a clear, competitive advantage. With its Think Blue Factory initiative, Volkswagen is pursuing a strategy which pools all environmental activities VW plants around the world.

    Think Blue. Factory. is an addition to the Volkswagen Think Blue. portfolio including key measures in the area of vehicle production. The program, which is concerned with efficiency improvements in production and the expansion of environmentally aware energy supplies, addresses all employees at the plants. Think Blue. Factory. is a holistic approach that pools all the environmental activities of the Volkswagen brand plants. Each plant has therefore produced an individual, tailor-made development path for achieving our targets by 2018.
     
  10. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi All:

    The VW Passat plant in Chattanooga plant continues to make headlines

    VWs Chattanooga Operations (Volkswagen Chattanooga) celebrated the inaugural graduation class of the Volkswagen Academy Automation Mechatronics Program (AMP) today in a ceremony that highlighted the German ‘dual education’ system and featured the first Americans to ever earn certification from the German Chambers of Commerce program, which certifies the graduates to work in Germany and around the world.

    Frank Fischer, CEO and Chairman of Volkswagen Chattanooga:
    A dual education system combines vocational classroom education and paid on-the-job training in one course. The focus of the Automation Mechatronics Program is to develop multi-skilled craftsmen who are responsible for keeping the Volkswagen plant operational. Students receive hands-on-training in mechanical systems, electricity, electronics, machining, welding and automated systems among other disciplines.

    The AMP is a three-year program that Volkswagen Chattanooga partners with Chattanooga State Community College to produce in the cutting edge 163,000 sq.ft Volkswagen Academy. The Academy was built with $40 million assistance from the State of Tennessee. Students are selected through a competitive admissions process and twenty-four students are admitted to the AMP each year (12 in the summer and 12 in the fall).

    Companies throughout the nation cannot find enough machinists, robotics specialists and other highly skilled workers to maintain their factory operations. So even as millions of Americans search for work, it is estimated that 600,000 skilled jobs remain unfilled.

    These types of programs have a long history in Europe, and are seen as effective education models to transfer knowledge and skills to the next generation of practitioners in all industries. In fact, two of the students have opted to participate in Volkswagen’s Wanderjahre program that offers work in a Volkswagen factory in Germany to further develop their skills.

    In these programs, the principle is learning by doing. The participants split their time between classroom-simulation laboratories training and working on the production floor. This mix of the theoretical and the practical is ideal for fully transferring knowledge and experience and allows the company to ensure that its standards are maintained over time.

    Ian Gwaltney delivered the valedictory speech of the inaugural class of the Volkswagen Academy Automation Mechatronics Program. He also participated in the successful Skills USA competition in 2012 and 2013. In 2012, his Skills USA team won the Tennessee post-secondary state gold medal (1st place) and the National post-secondary bronze medal (3rd place). In 2013, his team finished first in the state and 2nd nationally.

    The salutatorian was Caleb Higginbotham who also spoke at the ceremony and participated on the winning 2012 Skills USA team from the Volkswagen Academy with Gwaltney.

    For more information or to enroll in the Volkswagen Academy, please visit: VW Academy

    Wayne
     
  11. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi All:

    [​IMG]VW Manufacturing in Chattanooga, TN.

    Just hours ago, VW reaffirmed its commitment to expanding its Chattanooga, Tennessee facility, where it plans on producing an all-new midsize SUV (VWs Underutilized Chattanooga Plant to Build New SUV) for the U.S. market. As previously announced, VW plans on a total investment of approximately $900 million USD in the production of a newly developed, seven-passenger SUV. In the state of Tennessee alone, VW anticipates a $600 million investment and creation of 2,000 additional jobs. Production of the new midsize SUV is scheduled to begin in Chattanooga at the end of next year.

    In addition to investing in a new manufacturing line for the mid-size SUV, VW has created a new Engineering and Planning Center in Chattanooga. This center will house all future projects for the North American market through a central location, enabling the company to quickly and efficiently implement market-specific changes to vehicles.

    To allow for the production of the new midsize-SUV for North America, the current space at the plant in Chattanooga will be expanded by almost 500,000 sq. ft. Production of the new vehicle will be integrated into the current plant structure.

    Michael Horn, President and CEO, Volkswagen Group of America:
    Volkswagen has already invested more than U.S. $1 billion in its plant in Tennessee. Currently, more than 2,400 employees work at the plant; this summer, the 500,000th Passat Built in Chattanooga was built.

    Wayne
     
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  12. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    VW Chooses Chattanooga For U.S. BEV Production

    VW recently announced that Chattanooga, TN will be the company’s North American base for manufacturing battery electric vehicles.

    Strengthening the company’s commitment to electric mobility, this expansion of Volkswagen's U.S. footprint will include an investment of $800 million into the Chattanooga facility and create 1,000 jobs at the plant, plus additional jobs at suppliers. EV production at the site will begin in 2022.

    [​IMG]

    Chattanooga will be the first dedicated location in North America for production of a vehicle using Volkswagen’s modular electric toolkit chassis, or MEB. In addition to Chattanooga, Volkswagen is building the first dedicated EV production facility in Zwickau, Germany, starting MEB production by the end of 2019. Volkswagen will also add EV-production at facilities in Anting and Foshan, in China, in 2020, and in the German cities of Emden and Hanover by 2022.

    VW of America will offer the first BEV based on the MEB platform to customers in 2020. This vehicle will be a series-production version of the ID. CROZZ SUV concept, first shown at the North American International Auto Show last year. This vehicle will have the interior space of a midsize SUV in the footprint of a compact SUV. Volkswagen of America will also offer a multi-purpose EV based off the ID. BUZZ concept.

    Volkswagen currently builds the midsize Atlas SUV and the Passat sedan at the Chattanooga factory, which opened in 2011. A five-seat version of the Atlas, the Atlas Cross Sport, will begin production in Chattanooga later this year.

    Globally, VW plans to commit almost $50 billion through 2023 toward the development and production of electric vehicles and digital services. The Volkswagen brand alone has forecasted selling 150,000 BEVs by 2020 worldwide, increasing that number to 1 million by 2025.
     
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  13. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi All:

    VW Breaks Ground on Expansion for EV Production in U.S.

    VW of America has now started construction on its EV production facility at its Chattanooga site, where EV production will begin in 2022.

    VW began long-range EV production earlier this month in Zwickau, Germany, and will then roll out assembly worldwide, including in Anting and Foshan, in China, in 2020 and in the German cities of Emden and Hanover by 2022. The Chattanooga site will be VW's North-American hub for EV manufacturing.

    VW’s investment of about $800 million in the Chattanooga facility will require the addition of about 1,000 jobs. The production version of the ID. CROZZ will initially be assembled in Zwickau. Production of that vehicle is set to begin in Chattanooga in 2022.

    VW I.D. Crozz Concept

    [​IMG]

    The expansion of the plant includes a 564,000-square-foot addition to the body shop. Volkswagen will build both internal combustion engine vehicles as well as battery electric vehicles on the same assembly line.

    Battery Pack Assembly

    VW also announced it intends to build a 198,000–square-foot plant for the assembly of battery packs for EVs at the Chattanooga site.

    Tom du Plessis, VW Chattanooga CEO, said the expansion signals the start of new, high-tech processes in the plant. Hiring for the new assembly will begin in early 2020 and will continue as needed for ramping up production, he said. Positions added for the expansion include supervisors, specialists and a variety of engineers specializing in electrical, software, mechanical, manufacturing, chemical and quality.

    VW currently builds the midsize Atlas SUV and the Passat sedan at the Chattanooga factory. A five-seat version of the Atlas, the Atlas Cross Sport, began production in Chattanooga in October. It goes on sale early next year.

    Wayne
     
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