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Volkswagen Routan dead, pour out a sippy cup for your little homies

America's minivan wolfpack has just gotten smaller by one. According to Automotive News, Volkswagen officials have confirmed what we've suspected for some time - the Routan is dead. Essentially a lightly reworked version of the Dodge Grand Caravan, the Routan actually hasn't been rolling off of Chrysler's Windsor, Ontario production line at all this year, but VW had yet to confirm its discontinuation. However, Jonathan Browning, CEO of VW America, has reportedly admitted that the Routan is being axed, with remaining units expected to be funneled into corporate functions for "internal purposes."
The move isn't unexpected - the Routan has never been a big seller, with just 57,650 examples moved since sales began in 2008 - peak yearly sales totaled under 16,000 units, and that was back in 2010. And while many have talked of the minivan segment shrinking, Automotive News points out that the segment actually grew 14 percent last year to 597,118 units, though it should be noted that most segments have been on sales upticks as the US economy chugs out of its recession.
So, is volume-crazy Volkswagen prepared to pass on large family vehicle sales? Probably not - the German automaker has signaled that it plans to build a three-row crossover in North America soon, and we wouldn't be surprised if it looks an awful lot like the Crossblue Concept from January's Detroit Auto Show - minus the fancy plug-in diesel powertrain.

VW recognizes second union at Chattanooga plant

The ongoing story of organizing workers at Volkswagen's factory in Chattanooga, TN, continues to get more complicated. Following an independent audit, the automaker has now recognized a second union at the plant called the American Council of Employees. The group was founded there last year to offer an alternative to the United Auto Workers. "I'm not anti-union. I understand that a properly run union can benefit people. We will be that union," Sean Moss, president of the ACE, said to Reuters, according to Automotive News. The group claims to represent at least 15 percent of the workers at the plant. Acceptance of the ACE has led to an interesting situation in Chattanooga because VW also recognized the UAW at the factory in December 2014, and the group has claimed to represent at least 45 percent of workers there. According to Automotive News, each union has access to management, but the UAW has more because of its larger contingent of supporters. However, neither organization has a collective bargaining agreement with the automaker. Moss may have a rough time increasing support among employees at the factory. According to Automotive News, many anti-UAW workers there are completely against unions in general. Getting these folks to join his group isn't an easy task. The UAW has been working to fully represent the VW factory for years. However, the group lost a vote to do so in 2014. It eventually created a union local there to try to build support. All of the effort comes ahead of a $900 million plant expansion to add about 2,000 jobs and build a new crossover in Tennessee. News Source: Automotive News - sub. req.Image Credit: Erik Schelzig / AP Photo Plants/Manufacturing UAW/Unions Volkswagen chattanooga vw chattanooga chattanooga tennessee ace

VW confirms three-row Tiguan to be built in Mexico

Volkswagen has been toying with the idea of a three-row crossover for some time – as evidenced by the CrossBlue concept in 2013 and the Magellan concept way back in 2002. But now the German automaker is bringing it to fruition, and it's doing so right in our back yard (or across the fence, anyway). In its latest announcement, VW confirmed recent reports that it will build a new three-row Tiguan at its plant in Puebla, Mexico. It will be made alongside the Golf and Jetta at the company's largest assembly plant outside of Germany, after a billion-dollar expansion program that will encompass nearly a million more square feet of space and employ some 2,000 workers. Once production of the new Tiguan comes on full steam in 2017, the plant will be pumping out 500 of them every day to be delivered in the Americas, but also exported to markets overseas (save for China and Europe). At that point, VW will be producing 90 percent of its products for North America locally. Of course this won't be the first time Volkswagen will be producing a Tiguan. The current model was introduced in 2007 and underwent a facelift in 2011, but includes only two rows of seating and is imported to North America from factories overseas. VOLKSWAGEN DE MEXICO TO PRODUCE THE NEW THREE-ROW TIGUAN IN ITS PUEBLA ASSEMBLY PLANT Mar 9, 2015 - Investment of $1 billion at Puebla plant - US-CEO Michael Horn: Localization key to safeguard our competitive position - Start of production end of 2016 Puebla/Herndon, March 9, 2015 – Volkswagen de Mexico announced today that a three-row version of the Tiguan will be produced at its plant in Puebla, Mexico. The car will be launched to the markets in 2017. The company will invest $1 billion for the expansion and modernization of its production facilities at the Puebla plant, as well as tooling to produce auto parts at suppliers. Volkswagen de Mexico's strategy of technological upgrading, which started with the production of the new Golf on the Modular Transverse Matrix (MQB) platform, goes to the next step with the new Tiguan. "Localization has become key to safeguarding our competitive position on the global market and manufacturing the Tiguan in Mexico will bring production closer to the U.S.-market," said Michael Horn, president and CEO of Volkswagen Group of America. "It is another proof point that Volkswagen is committed to further growth in the U.S. and North American markets.