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Volkswagen lays off 500 Chattanooga workers

The redesigned Volkswagen Passat has been a decent seller since its debut in 2011, but sales have apparently dropped off enough that the automaker is trimming some of the employees from its Chattanooga, TN assembly plant. According to Automotive News, Volkswagen will be cutting shifts and laying off 500 contracted workers in response to slowing sales.
Currently, the plant has three teams running 10-hour shifts Monday through Saturday, but starting May 13, this will be reduced down to two teams running 10-hour shifts Monday through Thursday. This will be done to reduce dealer inventory (the article says that VW dealers, on average, have a 97-day supply of Passats) and production capacity (currently running at an annual pace of 170,000 units, which is more than the 150,000 annual units the plant was planned to produce).
This, of course, isn't saying that the Passat has been a failure since VW added 200 full-time employees to the plant in February 2012 to keep up with increased demand. The AN article says that automakers frequently overstaff plants during the launch of a new product - or in this case, a new product and a new plant - but eventually reduce the workers as things run smoother and more efficiently.

VW Jetta and Golf family earn IIHS TSP+ [w/video]

Volkswagen is the latest manufacturer to add vehicles to the growing list of cars, trucks and SUVs certified as Top Safety Pick+ by the Insurance Institute for Highway Safety. The non-profit has awarded its highest safety ranking on the 2016 Golf and Jetta families. Earning a TSP+ rating, while increasingly common, is still a challenge for automakers thanks to IIHS' strict testing regime. Vehicles must net "Good" ratings – the highest grade available – in the moderate overlap, front, side, roof, and head-restraint tests, while also scoring an "Acceptable" rating on the notoriously tricky small-overlap test. On top of that, the automated crash-prevention systems need to be rated as either "Advanced" or "Superior." For 2016, the Jetta, Golf, and their performance variants retained 2015's "Good" ratings across the board, while also receiving an "Advanced" crash prevention rating, thanks to the new-for-2016 Forward Collision Warning and Autonomous Emergency Braking systems. "This year's Top Safety Pick+ awards demonstrate Volkswagen's longstanding commitment to vehicle safety and the development of innovative technologies," Mark Barnes, VP of Sales for VW of America, said in the attached statement. "Our available driver assistance systems and safety features show Volkswagen's commitment to introduce systems that were once only seen on high-end luxury and premium vehicles, such as Adaptive Cruise Control and Lane Departure Warning." Scroll down for the official press release from VW and video of the crash test (and yes, that's a 2015 shown in both the lead image and video – the only difference between the two years was the availability of more advanced crash-prevention systems). This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. 2016 VOLKSWAGEN GOLF, GOLF SPORTWAGEN, GOLF GTI AND JETTA EARN A 2015 TOP SAFETY PICK + RATING FROM THE INSURANCE INSTITUTE FOR HIGHWAY SAFETY Aug 12, 2015 Herndon, VA — Volkswagen of America, Inc. today announced that the 2016 Volkswagen Golf 4-door, Golf SportWagen, Golf GTI 4-door, and Jetta models, when equipped with the optional Forward Collision Warning and Autonomous Emergency Braking (Front Assist) system, have been awarded 2015 TOP SAFETY PICK+ ratings by the Insurance Institute for Highway Safety (IIHS).

America was the unexpected theme at the 2017 Detroit Auto Show thanks to Trump

President-elect Donald Trump was not in attendance at this year's Detroit Auto Show, but it sure seemed like he was the target audience for many of the press conferences and announcements surrounding the event. Several manufacturers chose to play up existing and future commitments to the US in general and American jobs specifically in their presentations to the press, and we're pretty sure that has everything to do with Trump's recent targeting of automakers on Twitter. To us, it seemed automakers were going on the offensive to try and preempt any future tweet-shaming for investing in auto manufacturing anywhere but the US. The pro-America sentiment started the week prior to the auto show, with Ford announcing that it would build several future electrified vehicles at its Flat Rock Assembly Plant in Michigan and also cancel a $1.6 billion factory planned for Mexico. Ford announced the two items on the same day, but the reality is that they likely have no relation to each other; the Mexican plant is being skipped because the company doesn't need the extra capacity to build the Ford Focus right now. Trump was still happy to share the news on Twitter. Then, on Sunday, FCA announced it would invest $1 billion in manufacturing plants in Ohio and Michigan to produce the new Jeep Wagoneer, Grand Wagoneer, and Wrangler-based pickup. It's not as though those potential new jobs were on their way out of the US, necessarily, but FCA took the opportunity to mention that plant upgrades at the Warren Truck Plant would allow the company to build Ram heavy duty trucks, which are currently assembled in Mexico, there. CEO Sergio Marchionne confirmed that Trump and his proposed tariffs had nothing to do with the decision. We certainly believe that, but we also have to believe that the timing of the release, positive outcome for America, and zero gain for Mexico were all orchestrated. Again, Trump sent out a victory tweet as if this had been his doing. Ford then used its press conference at the show on Monday to reiterate the plans for Flat Rock and also confirm that the Ford Bronco and Ranger nameplates will be returning to the US market, and that both will be built at a plant in Michigan. Announcements of manufacturing locations are usually aimed at the UAW, which certainly has a stake in these things, but again this one was broadcast to the auto show crowd in general.