Vw Plans To Produce The Tiguan In North America

By Author: Marty Vergel Baes
Total Articles: 413
Comment this article

Volkswagen is presently one of the largest foreign automaker in the US. It was originally based in Germany but the competition brought about by the rising demands for vehicles by new car finders in the US and other North American markets encouraged them to extend their operation in the US. Due to this, VW has invested a total of $1 billion in order for them to open an assembling plant in the US. Due to this spending, Volkswagen now has a factory in Chattanooga, Tennessee intended to produce selected VW vehicle models.

VW’s Chattanooga plant currently assembles the 2012 VW Passat which is also offered for sale to a growing number of car finders in the US that are willing to purchase this model either on cash basis or through auto financing. However, the growing demand for SUV in the US has encouraged VW to assemble their SUV model in this North American plant. As a matter of fact, there were speculations that the company plans to assemble and produce the ...
... VW Tiguan in their Tennessee plant. But these speculations still remains unconfirmed since the VW management still holds the information about this particular issue.

The production of the SUV which is the VW Tiguan became one of the most immediate concerns of Volkswagen since the cost of shipping this vehicle model from VW’s Wolfsburg plant in Germany greatly affects its price when sold in the United States. Since the cost of shipping is passed on to potential buyers, the price of the Tiguan remains to be higher compared to its competitors that are produced domestically. Due to this, the Tiguan cannot compete with the SUVs produced by GM and other competitors in terms of price. Given this, the plan to produce the Tiguan in the US proves to be a good move to boost its sales due to reduced price.

In the event that the plan to produce the VW Tiguan in North America would continue, this will be the fourth VW model that would be produced in the region. This is because the Passat is produced in Chattanooga while the Jetta and the Beetle are assembled in Mexico.