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VW using other manufacturing locations as leverage in battle with TN [w/video]

We've reached a new step in the ongoing drama at Volkswagen's factory in Chattanooga, TN. The United Auto Workers recently dropped its opposition to the union vote and agreed that it wouldn't hold another ballot for at least a year. Now, the new question becomes where VW is going to build its forthcoming midsize SUV.
Earlier, it had been considered all but certain that the SUV, likely a production version of the CrossBlue concept (pictured above), would be built in Tennessee. However, it seems the Chattanooga factory might have competition to produce it. In emails obtained by The Detroit News, VW's lawyer wrote to the Tennessee economic development department in January saying, "While we understand there are some 'non-deal' issues that are causing a delay in the TN solution, VW has been successful in reaching agreement on terms at the alternative locations."
As previously reported, the state of Tennessee allegedly offered VW about $300 million in incentives to build the vehicle there and create an estimated 1,350 jobs, but it later rescinded the deal. Newly leaked documents from NewsChannel 5 (WTVF-TV) in Nashville allegedly show just how close that offer was to being completed. It appears that VW actually sent the government the first draft of a memorandum of understanding agreeing to the incentives, but the state removed the offer in late January.

VW chair says component cost decrease keeps him confident of EV success

Volkswagen AG is in the middle of implementing a comprehensive electric vehicle strategy, one that we've been documenting for a long time. The Group stands ready to offer dozens of plug-in vehicles in the coming years if it feels there is sufficient demand and believes that selling a million EVs in Germany by 2020 is reasonable. That would be a solid number, but remember that VW sold over 5,923,000 passenger cars around the world last year, and the group as a whole sold over 9.7 million. At the company's annual Media Conference and Investor Conference in Berlin recently, the chairman of the board of VW AG - surrounded by some decidedly non-green examples of the VW Group's vehicles (some absurd new Bugatti, for example) - took some time to put the company's EV plans into focus. The upshot is that Dr. Martin Winterkorn is still guiding his electromobility ship into new waters, saying that "many more [plug-in] models will follow." Winterkorn said there are three main reasons he is confident in the ability of VW (and Audi and Porsche, at the very least) to push EV sales upward. Batteries are getting better, he said, and if the ranges can be extended, then customers are happy. But the real secret lies in reducing component costs. He said (as translated): It is important to look at the cost of the components: the battery technology, the electric motor and the electric components. Whenever you go into volume production, you of course have economies of scale. In two to three years' time, if we are able to achieve the goals we are setting for ourselves with cost and reach sufficient volume, I do believe that we can achieve two to three percent [market share] within VW Group. So, hitting a million EVs by 2020 is reachable. With the e-Golf and the e-Up off to excellent sales starts, we're willing to be confident as well.

VW decides against active-cooling system for e-Golf lithium battery

When the 2015 VW e-Golf was introduced at the LA Auto Show last year, VW said it would come with a water-cooled battery. During the Detroit Auto Show, when the car was trotted out again, VW released a new press release that stripped out the "water-cooled" language, but this change went unnoticed. During a recent VW event in Germany, a friend from Green Car Reports realized that the battery on display did not seem to have any water-cooling mechanisms. That set us off on a bit of a sleuthing and we have now learned that VW is not going to include any active cooling in the upcoming e-Golf. In fact, the company is entirely confident that this car - because of what it's designed to do - doesn't need it. "The need for a cooling system wasn't there" - VW's Darryll Harrison VW has been working on an electrified Golf for ages now, and so changes to the plan are to be expected. But battery cooling is vitally important not just to keep the car operating properly but because when things get too hot, there can be serious public relations problems. Nissan began testing a new battery chemistry for the Leaf in 2013 after an uproar from warm-weather EV drivers in Arizona who were experiencing worse-than-expected battery performance. The Leaf has always used an air-cooled battery, which is another way to say that there is no active cooling system (more details here). Tesla CEO Elon Musk once said this approach is "primitive." So, why is VW following the same path? We asked Darryll Harrison, VW US's manager of brand public relations west, for more information, and he told AutoblogGreen that VW engineers discovered through a lot of testing of the Golf Mk6 EV prototypes, that battery performance was not impacted by temperatures when using the right battery chemistry. That chemistry, it turns out, is lithium nickel manganese cobalt oxide (NMC) in cells from Panasonic. These cells had "the lowest self-warming tendency and the lowest memory effect of all cells tested," Harrison said. He added that VW engineers tested the NMC cells in places like Death Valley and Arizona and found they didn't warm very quickly either through operation, charging (including during fast charging) or through high ambient temps. "The need for a cooling system wasn't there," Harrison said.