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Volkswagen plans expansion, tech center in Chattanooga

Volkswagen is expanding its growing Chattanooga, TN, factory by even more than the original plans after winning the local government's approval. The German automaker announced its intention last year to invest $900 million to add 538,000 square feet of floor space to the plant, which would add 2,000 new jobs. The company just went back to the city for permission to increase the expansion by a further 130,153 square feet for an even larger body shop. The extra construction is estimated to cost around $18 million. VW spokesperson Catharina Mette described the decision as "a cost-saving option," to Autoblog. "Taking this action now saves money while giving us flexibility as we integrate the MQB platform in the future," she said. By the end of 2016, the Chattanooga plant will begin production of VW's forthcoming crossover, which should look similar to the Cross Coupe GTE concept. VW has further plans for the research, development, and planning center near the factory. According to the Chattanooga Times Free Press, some of the designers and engineers will start work at a temporary facility there next week. A permanent location will open in 2017 with a test track and space to perform crash evaluations. The engineering center is meant to speed up the rate of vehicle development to bring models to the North American market more quickly."This will be the central entity in all the US, and hopefully all of North America," Matthias Erb, who oversees the center, said to the newspaper. Related Video:

VW readying new VR6 with forced induction

Volkswagen built a stonking, narrow-angle V6 in the 1980s and 1990s that was found in three different generations of the Golf (their performance iterations, obviously), three generations of the Passat, the New Beetle, the Corrado and the Touareg, among other VWs, a spate of Audis, Seats, a Skoda, and even the Porsche Cayenne. It was a sad day when it was announced that it'd be put out to pasture.
Rejoice, though, fans of the venerable VR6, because Volkswagen has a new, modern variant in the works that, according to AutoWeek, features direct injection and can easily be fitted with forced induction. In fact, AW mentions Volkswagen insiders that claim this unit will spawn a production version of the twin-turbo V6 shown on the Design Vision GTI from this year's Wörthersee festival. That unit produced an epic 503 horsepower and 413 pound-feet of torque.
Don't expect a production unit with that level of power (although it would make a hardy RS4 powerplant), though. In reality, AutoWeek is suspecting anywhere from 340 to 450 horsepower from the new mill. When it arrives at an undisclosed date in the future, it'll likely be found in the Passat and Passat CC as well as the production version of the CrossBlue.

VW may move production because of Russia's cutoff of natural gas

Volkswagen AG is exploring ways to counter a shortage in natural gas, including shifting production around its network of global facilities, signaling how the energy crisis unleashed by Russia’s invasion of Ukraine threatens to upend EuropeÂ’s industrial landscape. Volkswagen, EuropeÂ’s biggest carmaker, said Thursday that reallocating some of its production was one of the options available in the medium term if gas shortages last much beyond this winter. The company has major factories in Germany, the Czech Republic and Slovakia, which are among European countries most reliant on Russian gas, as well as facilities in southern Europe that source energy from elsewhere. “As mid-term alternatives, we are focusing on greater localization, relocation of manufacturing capacity, or technical alternatives, similar to what is already common practice in the context of challenges related to semiconductor shortages and other recent supply chain disruptions,” Geng Wu, VolkswagenÂ’s head of purchasing, said in a statement.  RussiaÂ’s decision to throttle gas supplies to Europe has raised concerns that Germany might be forced to ration its fuel. Recent news that gas storage levels hit 90% ahead of schedule has soothed fears of acute shortages this winter, but Germany faces a challenge in replenishing depleted reserves next summer without contributions from Russia. Southwestern Europe or coastal zones of northern Europe, both of which have better access to seaborne liquefied natural gas cargoes, could be the beneficiaries of any production shift, a Volkswagen spokesman said by phone. The Volkswagen group already operates car factories in Portugal, Spain and Belgium, countries that host LNG terminals. Labor hurdles To be sure, any major production shift away from EuropeÂ’s biggest economy would face significant hurdles. VW has some 295,000 employees in Germany and worker representatives account for around half the companyÂ’s 20-member supervisory board. Any shift in production would likely involve a limited number of vehicles rather than wholesale factory shutdowns. While gas supplies for VWÂ’s plants are currently secured, the company has identified potential savings at its European sites to cut gas consumption by a “mid-double-digit percentage,” said Michael Heinemann, managing director of VWÂ’s power-plant unit. Still, the carmaker said it was concerned about the effect high gas prices could have on its suppliers.