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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:

Will VW's rumored 186-mile EV battery be enough?

Just as there continues to be a horsepower war in the realm of performance cars, there's an ongoing battle over driving range among electric vehicles. Both the Tesla Model 3 and Chevrolet Bolt are promising around 200 miles for a relatively affordable price in or around 2017. Plus, Nissan is reportedly nearing a 250-mile Leaf for about the same time and Ford might be joining the game, too. Volkswagen might be the latest potential challenger with some extra distance possible from its future EVs. According to Hybrid Cars, Volkswagen Chairman Martin Winterkorn tells Bild in Germany that the company is developing a new generation of battery tech with major gains, and it could reportedly provide a range of around 186 miles. That's more than double the current 83-mile EPA certified range for the e-Golf but falls short of the projections from competitors. Winterkorn didn't indicate exactly when this innovation would be ready for production, though. Especially in recent months, the German automaker is making serious moves towards big advancements in battery tech, and the company's platforms are largely already prepped to become EVs. The entire VW Group is reportedly considering moving to a single, unified lithium-ion cell design, and that switch could cut component costs by as much as 66 percent. In late 2014, the German automotive giant also bought five percent of the US-based startup QuantumScape. That business has claimed a staggering 430-mile range from its fireproof, solid-state lithium batteries, but the proof will need to be seen on the road – and in whatever the competition is able to accomplish whenever a car is finally available.

VW makes $23K on every Porsche sold, more than Bentley or Lamborghini

It's a good time to be in the luxury car business. In Volkswagen Group's financial report for the 2013 fiscal year, it is revealed that that Porsche enjoyed an operating margin of 18 percent. That means the Stuttgart brand made on average about $23,200 per car sold, according to BusinessWeek. Bentley wasn't far behind, and Audi (which was combined with Lamborghini) posted a 10.1 percent margin. This compares to only around 2.9 percent for the Volkswagen brand.
"Luxury brands are on fire," said Dave Sullivan, an industry analyst at AutoPacific. He said that the average profit margin is between six and eight percent. Brands like Porsche and Bentley have the benefit of competing in rarefied markets. Buyers looking at one their vehicles have fewer models to shop against and don't care as much about price. They can also charge more for options, which further boosts income, according to BusinessWeek.
In a way, we should be more impressed by the continued success from Audi. Its models generally have direct competitors in every segment from the other premium automakers. Plus, their buyers aren't the captains of industry who are shopping for a Bentley. Still, the Four Rings is leading rivals in sales so far this year.