VW may build factory in the U.S.
One of the problems with being an import car maker at the lower end of the automotive market is an increased sensitivity to currency exchange rate fluctuations. This is particularly problematic if the carmaker doesn't have a government willing to make currency adjustments the way Japan regularly does. Thus, Volkswagen has had a troubled manufacturing history with the U.S. for the last three decades. As a response to currency issues, Volkswagen was the first import maker to set up a transplant operation in Pennsylvania in 1978, several years before Honda started building Accords in Ohio. Ten years later the plant closed as demand for the Golf hatchbacks it built dwindled. In recent years, as the U.S. dollar has continued to shrivel compared to the Euro, VW profits have been hit again and so they are taking another look at building in the U.S. CEO Martin Winterkorn told German magazine Focus they are looking at a U.S. manufacturing plant if the dollar remains weak. Given the unlikely scenario of the dollar rising anytime soon, states may be sending in their
[Source: Detroit News]
Reader Comments (Page 1 of 1)
SherbornSean 7:21PM (7/09/2007)
Sony really appreciated all the work that VW put into make them a nice factory in PA. Hope the next one is closer to their glass supplier.
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Owen 7:31AM (7/10/2007)
I used to work for sony's glass supplier, which was in PA, it closed in 2003 due to the "dumping" of Chinese goods, which they got caught for and eventually the Chinese had a 150% tariff slapped on them, but it was only after all the US manufacturers went out of buisiness.
Logic 7:47PM (7/09/2007)
Yes, currency exchange fluctuations really affect foreign automakers. ESPECIALLY IF YOUR VEHICLES ARE OVERPRICED AND UNRELIABLE TO BEGIN WITH!
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TRAVIS D 8:02PM (7/09/2007)
funny how 5 of the VWs in our extended family have over 150,000 mi on them with minor problems fixed through the dealer but my mom's 98 Chrysler, cousin's 02 sierra, uncles 98 ram, aunt's 98 sable and a friends 00 Saturn all had serious engine/transmission problems before or around that millage. guess we all just got lucky.
Logic 9:24PM (7/09/2007)
Travis, your delusional. I have owned 2 VWs in recent years and I have worked on alot more than that. No one builds a more reliable car for the price than America. VW can't engineer a wondow regulator that lasts more than 3 years, and alternator that lasts more than 6, door dent trim that stays on longer than 5, not to mention the endless array or electrical problems that all the German cars share. I WON'T EVER MENTION THE PARTS PRICES AND CROOKED DEALER PRACTICES. VW hasn't built a quality car since the 80's!
jf2273 8:11PM (7/09/2007)
Forget about building a factory over here, bring over the Seats and the Skodas! I don't know even though the Skodas and Seats are cheaper than their VW platform mates, we still have to deal with the exchange rate:( I'm guessing if VW does build a factory...it'll be somewhere in the south.
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Jeff Banks 8:49PM (7/09/2007)
Aren't VW's made in Mexico, or is that just the old Type-1 beetle?
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Tom Miller 10:23PM (7/09/2007)
Yes, many VWs are made in Mexico. I don't know which ones, but the plant in Puebla must be a cheaper place to manufacture than the US.
SherbornSean 9:06PM (7/09/2007)
Jeff,
You're right -- the Jetta is hecho S.O.B., but not the Rabbit or Passit.
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Axel 6:49AM (7/10/2007)
@Logic: What you're saying is so endless ridculous that I really shouldn't comment on that, but somehow I have to. Our whole company uses VWs for daily business (20 cars) and they are *very* reliable. A lot less problems that most other manufacturers. I personally drive a Passat and simply could not afford to have an unreliable car. VWs are really good.
Vinny 9:47PM (7/09/2007)
Well, I'm sure Ford has some mothballed factories that would let go for cheap.
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Kumar 10:28PM (7/09/2007)
Ford will let VW have the factories for free if they pick up the some of their worker's pension and health care plans ;)
The only VW's they'd make here anyway would be the higher end, with greater profit margin, to be able to afford union salaries. That's pretty much anti what all of us are looking for....an inexpensive, reliable car with a sturdy diesel engine...let the laughing commence.
James 8:01AM (7/10/2007)
Yeah, I thought that's what they built the Puebla factory for? Why don't they just expand that facility?
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Jim In Tampa 8:47AM (7/10/2007)
In the summer of 79, I bought a brand new Westmoreland PA made VW Rabbit L. It made it 1 mile from the dealer and had to be towed in. The second time I took delivery, it had to be towed in again. Third time was a charm as it made it to my parent's house before breaking down. The car couldn't go a month without spending time in dealer's service center. And do you think they would give me a loaner? Nope. AAA dropped me because I had too many tows in one year since the car always broke down after VW service hours or on the weekend and left me to arrange to get it to the dealer. I got fed up after two years, dumped the car and got a reliable, trouble free GMC truck.
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policyvote 10:29AM (7/10/2007)
Governor Granholm, are you listening?
Peace
policy
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DreamTheater 8:25PM (7/10/2007)
Am I the only one who's noticed the last sentence in the article? Funny and quite accurate given recent history which may or may not have escaped American readers...
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Patrick Austin 9:56AM (7/11/2007)
I've owned 10 VAG cars over the years, used to do fleet management on a group of 40 mixed hondas and vw's, and I wouldn't call VWs "reliable" except compared to some American cars. You're delusional if you think VWs can hold a candle to Japanese cars for reliability or serviceability.
Yeah, they'll last forever if you maintain them well, but ANY car will do that. A modern VW is a complete f-ing rat's nest of poorly designed electronics. I can say that because I love them. We have to be honest about our loved ones' "issues".
I owned 3 16v A2's. One '91 GTI hecho en mexico, one '88 GTI made in Westmoreland PA and one '91 Jetta from the Fatherland. The German one made it to 220K miles, rarely gave me trouble, and was still in awesome shape. The Mexican GTI cost me $6000 in repairs in ONE YEAR (clutch, then trans+clutch, then the "normal" vw nickel and dime crap). The 'merican one was only slightly better.
I still love my Passat and there's nothing in that price range that drives as nicely.
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GOT 1:44AM (7/12/2007)
Are we supposed to believe anything VW says?
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