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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:

Audi spending an additional $2.5 billion on expansion through 2019

Every year, it seems the Volkswagen Group announces a new and larger spend to push growth and profit, with Audi a regular recipient of the moolah. That's reasonable, seeing as hauls in 40 percent of Group operating profits. In December last year Audi said it would spend an additional 100 million euros ($122M US) per year through 2018 to develop new models and expand production, targeting 60 models by 2020 and luxury sales leadership. This month Audi said it will boost that by another two billion euros ($2.5B US) over the next five years, for a total outlay of 24 billion euros from 2014 to 2019. Something like 70 percent of those billions will be spent on new models, technology like "connectivity and lightweight construction," and factory expansion at its plants in Ingolstadt and Neckarsulm. Most of the ten models that will plump the lineup to 60 cars will mainly be aimed at the C and D segments, as well as crossovers, the brand's burgeoning portfolio of PHEV models, and all-electric cars that will begin staking ground in the segment. The big spend comes at the same time as Audi is working hard to reduce costs by $2.5 billion to maintain profitability, part of a larger push by VW to cut costs by $6.1 billion by 2017. More than a billion euros will go to new factories in Mexico and Brazil. Work begins on the Mexico plant next year, and when it comes on-line in 2016, Audi's Q5 successor will roll out of its warehouse doors; Audi has already announced it will hire 850 more workers next year in Mexico. When that's done, Mexico's production of German luxury cars will only trail that of Germany, China and the US. The company's Brazil plant will produce the A3 and S3 starting next year, and the brand figures luxury car buying there will triple by 2017. News Source: Reuters Earnings/Financials Plants/Manufacturing Audi Volkswagen Luxury Mexico Brazil ulrich hackenberg

VW recalls 420,000 vehicles for driver's airbag failure

Volkswagen is issuing a recall for 420,000 vehicles in the US because of a potential failure of the driver's side airbag. The campaign affects German-made examples of the 2010 Passat; the 2010-2013 Eos and Jetta; the 2010-2014 CC, Tiguan, and US-produced units of the Passat; the 2011-2013 Jetta SportWagen; and the 2011-2014 Golf and GTI. There are no reports of accidents or injuries related to this issue. Specifically, this problem comes because the steering wheel clock spring can be contaminated by debris, which moves the part's guide loops out of position. This can cause a tear in the electrical cable that controls the driver's airbag. If this happens, a warning light would illuminate, but the safety device would not deploy in a crash. VW is still identifying all of the affected VINs and developing a fix. The company plans to notify owners once everything is known. Related Video: VOLKSWAGEN ISSUES VOLUNTARY RECALL Aug 14, 2015 Herndon, VA - Volkswagen considers the safety and satisfaction of its consumers and passengers a top priority. As such, Volkswagen of America today notified the National Highway Traffic Safety Administration (NHTSA) that it will be issuing a voluntary safety recall affecting the steering wheel clock spring on approximately 420,000 Volkswagen vehicles in the U.S. Certain 2010-2014 Model Year Volkswagen CC Certain 2010-2013 Model Year Volkswagen Eos Certain 2011-2014 Model Year Volkswagen Golf/GTI Certain 2010-2013 Model Year Volkswagen Jetta Certain 2011-2013 Model Year Volkswagen Jetta SportWagen Certain 2010 Model Year Volkswagen Passat (German Production) Certain 2010-2014 Model Year Volkswagen Passat (U.S. Production) Certain 2010-2014 Model Year Volkswagen Tiguan On certain vehicles, the steering wheel clock spring could become contaminated with long hair or long fibers which may cause a displacement of the internal guide loops. When the guide loops are dragged out of position, they may apply tension to the internal flat cable and cause it to tear. Should the cable tear, the electrical connection to the driver's front airbag may be lost, causing the airbag monitoring indicator light to illuminate. In a crash that warrants a driver front airbag deployment, the airbag will not deploy, leading to a risk of driver injury.