Reports that Volkswagen has delayed or canned its plan to build a plant in Chattanooga, Tenn., are false, said Volkswagen Group of America CEO Stefan Jacoby.
"Our investment and our time schedule in Tennessee are on time," Jacoby said, after the Volkswagen make meeting Sunday. "We have no intentions to delay our plans because of the economic situation."
Volkswagen Group of America has invested $1 billion in the Chattanooga assembly plant. The plant will build a new mid-sized sedan designed for the United States.
Production is scheduled to start early in 2011. The plant's annual capacity will be 150,000 vehicles, 30 percent of which will be powered by Volkswagen's TDI clean diesel technology.
Dealers said that they had heard rumors about the project stalling.
Volkswagen management reassured dealers during the meeting that production will begin as planned, said Jason Kuhn, the new chairman of the Volkswagen National Dealer Advisory Council.
Richard Fisher, owner of The Autobarn Ltd., which has three Volkswagen dealerships in the Chicago area, said dealers should look forward to a competitive mid-sized sedan. c
Jacoby said other vehicles on the way are the next New Beetle, the Jetta successor and other vehicles in new segments. He said: "We're also investigating a smaller car than the Jetta for the U.S. market." c