Autoblog

With Volkswagen due to make a decision about the location of its first US factory in more than two decades, the next obvious question is what to build there? We had a chance to pose that very question to Steve Keyes, GM of Public Relations for VW of America. According to Steve, the driving force for the factory is two-fold. First and most obvious is the exchange rate issue. With dollar being worth less almost daily against the Euro, it's increasingly difficult for VW to price cars competitively, especially in the mainstream segments where it primarily competes. The second reason is capacity constraints at the Peubla, Mexico factory that builds VW's highest volume US product, the Jetta. VW of America has set a target tripling combined sales of Audi and VW within the next decade.

Meeting those sales goals will require a lot more vehicles to sell at a competitive cost. So the first products out of the plant will likely be the highest volume products, the Passat and Jetta. If the plant is set up to build Jettas, then it could relatively easily be adapted to build any other model that shares the Golf/Jetta platform. That could potentially mean products like the Scirocco and even the Audi TT. Will we see these? Probably not at first, but if demand warrants, it could happen. So if you are all really serious about wanting the Scirocco on US shores, you should start pestering the head office (which just moved to Virginia last week).

[Source: Volkswagen]

It's been a rather short trip from VW asking whether it would build a factory in the U.S. to saying "Ja" and closing in on two locations. The decision on where the factory will be hasn't been made yet, but spots in North Carolina, South Carolina and Georgia are the leading candidates.

Plans apparently call for a large plant, and VW wants it churning out cars by 2011. So the company needs at least 1,000 acres, and it needs to get to work on it immediately. If VW went with the site in Rocky Mount, NC, it would be placed about midway between VW's future corporate headquarters in Virginia and the cluster of suppliers around BMW's Spartanburg, SC plant. But VW is also scouting land in Anderson, SC.

Yet, even though VW hasn't announced the location, the Rocky Mount land appears to be in play. A deal for a large parcel is scheduled to close later this month. Said the farmer who owns most of it, although he hasn't met the buyers, "All I know is I'm selling it to a bunch of Germans." The plant, wherever it ends up, will build cars for North America and Europe.

[Source: Auto News, sub req'd]