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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.

Don't buy that crossover! Buy a cladded wagon instead!

If you're looking to buy a car soon, and you're like most Americans, there's a strong chance you're considering buying a crossover SUV. That's what people want nowadays. People like the tough, tall exterior that suggests adventure and preparedness, they like the high seating position, they like the all wheel drive many have and they like the practicality. Because of this, crossovers have rapidly supplanted typical cars such as sedans, wagons, and more as the most popular vehicles in the country. But they're compromised, too. They're often heavy, thirsty, and expensive compared with more conventional cars. The good news is, there's an alternative, a happy medium between the straight crossover and the traditional car. They're lifted wagons, and they're the best crossover SUVs around. And for those who may not know what we're talking about, we're talking about cars and wagons that have been given a suspension lift for more ground clearance and a higher ride height, and often have all wheel drive standard or optional. They also usually have chunky plastic body cladding to make them look tough and durable. Examples include the Subaru Crosstrek, Audi A4 Allroad, Buick Regal TourX, and Volkswagen Golf Alltrack, among others. Because of the suspension and body modifications, these vehicles fit the trendy crossover mold quite well. And in the case of long-running nameplates such as the Subaru Outback and Volvo Cross Country models, they even have some heritage as outdoorsy machines. They also provide the higher driving position that crossover buyers love. And in some cases, such as with the Golf Alltrack, we've learned they offer better ride quality than their road-oriented siblings. View 9 Photos So these tall wagons offer the key things crossover buyers want, but what makes them better than traditional crossovers is that they have the advantages of the cars they're based on. For instance, the aforementioned Golf Alltrack still drives mostly like a Golf, which is to say, it's nimble, feels peppy, and is easy to maneuver because of its relatively small size. We can't really say the same for the Tiguan, which feels generally more sluggish and uninteresting than the Alltrack. And we mention Volkswagen's compact crossover because it starts at nearly the same price as the Alltrack. Some of the difference in giddy-up can be explained by weight. Normal crossovers can be fairly portly, while these lifted wagons are notably lighter.

Recharge Wrap-up: VW CEO mulls battery factory, voters approve $201B in transportation funding

Volkswagen Group CEO Matthias Muller says that it would "make sense" for the automaker to begin producing its own batteries. As the company moves toward electrification, Muller says it would be a smart move to build a battery factory. "If more than a quarter of our cars are to be electronic vehicles in the foreseeable future then we are going to need approximately 3 million batteries a year," he says. Volkswagen has agreed to cut 30,000 jobs in its restructuring, while committing to creating 9,000 jobs in Germany through battery manufacturing and mobility services. Read more at Automotive News Europe. Election results show a desire for transportation funding. Earlier this month, voters in 22 states approved ballot measures adding up to $201 billion in funding for transportation projects, according to the American Road & Transportation Builders Association. California passed 15 transportation measures, including one in Los Angeles worth $120 billion for roads, bridges, and transit. The state of Washington secured $54 billion for light rail and buses. Atlanta approved about $4 billion for road and transit projects. Illinois and New Jersey passed measures to prevent the diversion of transportation user fee revenue to other industries. Read more from ITS International. The US Department of Energy (DOE) must hand over confidential documents about Fisker's bankruptcy. A Delaware federal judge ordered the DOE to give the documents – which concern a presentation by Fisker to the DOE in which it falsely claimed to meet milestones set forth in a government loan – to lawyers in a case in which investors claim Fisker lied to them about financial troubles. While the DOE has given over documents already, they were incomplete and heavily redacted. "I understand that such disclosures may have a negative impact on future DOE analyses," says US District Judge Sue Robinson. "but conclude nonetheless that under the circumstances at bar – the public money at stake, the Congressional hearings, and the fact that Fisker Automotive is now a defunct company – the balance of interests favors plaintiffs." Read more at Law360. Related Gallery Volkswagen I.D.