Volkswagen Plant In TN May Build Hybrid, Diesel Engines

Automotive News has reported that VW will build a range of new power trains and engines at its just-announced assembly plant in Chattanooga, TN. The company has not publicly identified the vehicle programs and components that will be assembled there, except to say that the company will produce a mid-sized sedan specifically for the North American market by 2011.

Speculation focuses on hybrid and diesel technologies that would help the company meet increasingly strict fleet-average vehicle emissions standards scheduled to take effect in 2012. Last month, VW introduced its zero-emission Tiguan to the North American market.

The site reports that VW will assemble diesel engines in the new plant to take advantage of the favorable exchange rate. VW is also considering the construction of a new transmission plant in Mexico, as part of its previously announced $3B investment in its Mexican production operations. Overall, the company's goal is to sell 800,000 units in the North American market by 2018.

Source: Automotive News via Motor Authority
Photo: Volkswagen