VW to produce mid-sized sedans at the new plant

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CHATTANOOGA, Tenn. - Volkswagen will produce a mid-sized sedan at the new factory when production begins in late 2010.


The new sedan, which will come to market for the 2011 model year, will be similar in size to today's Passat, but will not replace the Passat, that positioned to above the mid-sized sedan. The new mid-sized sedan is a Malibu fighter, an Accord fighter and it's a Camry fighter.

Initial capacity at the $1 billion factory will be 150,000 vehicles annually and will be extended to 200,000 vehicles later.

The possibility of VW producing a new SUV or crossover is being considered. The vehicle would slot between the compact Tiguan, which went on sale in the United States this year, and the larger Touareg SUV, which has been foundering in the United States.

Engines and transmissions for the Chattanooga-made vehicles will come from Volkswagen's Puebla, Mexico, factory, which also produces the New Beetle family and Jetta sedan. The both factories would be integrated in the future and hinted that more powertrain production could be coming.

[Source : Automotive News .. Sub req.]