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Volkswagen plans expansion, tech center in Chattanooga

Volkswagen is expanding its growing Chattanooga, TN, factory by even more than the original plans after winning the local government's approval. The German automaker announced its intention last year to invest $900 million to add 538,000 square feet of floor space to the plant, which would add 2,000 new jobs. The company just went back to the city for permission to increase the expansion by a further 130,153 square feet for an even larger body shop. The extra construction is estimated to cost around $18 million. VW spokesperson Catharina Mette described the decision as "a cost-saving option," to Autoblog. "Taking this action now saves money while giving us flexibility as we integrate the MQB platform in the future," she said. By the end of 2016, the Chattanooga plant will begin production of VW's forthcoming crossover, which should look similar to the Cross Coupe GTE concept. VW has further plans for the research, development, and planning center near the factory. According to the Chattanooga Times Free Press, some of the designers and engineers will start work at a temporary facility there next week. A permanent location will open in 2017 with a test track and space to perform crash evaluations. The engineering center is meant to speed up the rate of vehicle development to bring models to the North American market more quickly."This will be the central entity in all the US, and hopefully all of North America," Matthias Erb, who oversees the center, said to the newspaper. Related Video:

Mueller named Audi boss, too

Matthias Muller, chairman of the board for the Volkswagen Group, has officially taken the role of chairman of the supervisory board for subsidiary Audi. Muller takes over the role from the disgraced Martin Winterkorn. This appointment should come as a shock to no one, and not just because we told you about it last week. Since Audi is part of the Volkswagen Group, which Muller leads, he's effectively been the head of the subsidiary brand since his appointment in late September. This news simply formalizes his positioning at the Ingolstadt-based company. This, of course, is not Muller's first go-around at Audi. He previously served as Head of Product Management Audi (along with Lamborghini and Seat), before taking the lead on product planning at the entire VW Group. Check out the official press release from VAG. MATTHIAS MULLER BECOMES CHAIRMAN OF THE AUDI SUPERVISORY BOARD Ingolstadt/Neckarsulm, December 7, 2015 – The Chairman of the Board of Management of Volkswagen AG, Matthias Muller, has joined the Supervisory Board of AUDI AG and becomes its Chairman with immediate effect. Berthold Huber will continue to be Deputy Chairman. Furthermore, the two vacant seats for members representing the shareholders will be newly occupied by Julia Kuhn Piech and Josef Ahorner. Matthias Muller has been a member of the Board of Management of Volkswagen AG since March 1, 2015 and its Chairman since September 25, 2015. After completing high school in Ingolstadt, he did a toolmaker's apprenticeship at Audi. He then studied informatics at the Munich University of Applied Sciences. After graduating in informatics, Muller continued his career at Audi in 1978, progressing to become the Head of Product Management for the Audi, Lamborghini and SEAT brands. From 2007 onwards, Muller was Head of Product Management for the Volkswagen Group and the VW brand as well as Executive Vice President of the Volkswagen Group. From 2010 until September 2015, Matthias Muller was Chairman of the Board of Management of Dr. Ing. h.c. F. Porsche AG. Josef Ahorner (55) is the chairman of the supervisory board and main shareholder of Emarsys AG, and was a member of the shareholder committee of Salzburger Porsche Holding from 1996 until 2008. Julia Kuhn-Piech (34) is a real estate manager and a member of the supervisory boards of MAN SE and the Truck & Bus division of MAN AG.

Which will Dieselgate hurt more, Volkswagen or US diesels?

The most damning response to the news Volkswagen skirted emissions regulations for its diesel models may have actually come from the Los Angeles Times. On Saturday, the Times published an editorial titled "Did Volkswagen cheat?" The answer was undoubtedly yes. When you can't drive down Santa Monica Boulevard without seeing an average of one VW TDI per block, the following words are pretty striking: "... Americans should be outraged at the company's cynical and deliberate efforts to violate one of this country's most important environmental laws." VW has successfully cultivated a strong, environmentally conscious reputation for its TDI Clean Diesel technology, especially in states where emissions are strictly controlled. A statement like that is like blood all over the opinion section of the Sunday paper. The effect on VW's business, even Germany's financial health, was already felt Monday when the company's shares plummeted 23 percent in morning trading. The statement on Sunday from VW CEO Dr. Martin Winterkorn says "trust" three times. That probably wasn't enough in nine sentences. Writers over the weekend have compared VW's crisis to one at General Motors 30 years ago, when it was the largest seller of diesel-powered passenger cars until warranty claims over an inadequate design and ill-informed technicians effectively pulled the plug on the technology at GM. In a sense, VW is in the same boat as GM because it has fired a huge blow into its own reputation and that of diesels in passenger cars. And just as automakers like Jaguar Land Rover, BMW and, ironically, GM, were getting comfortable with it again in the US. VW of America was already knee-deep in its other problems this year. Its core Jetta and Passat models are aging and it needs to wait more than a year for competitive SUVs that American buyers want. The TDIs were the only continuous bright spot in the line and on the sales charts. Even as fuel prices fell and buyers shunned hybrids, VW managed to succeed with diesels and show that Americans actually care about and accept the technology again. Fervent TDI supporters might actually lobby for that maximum $18 billion fine to VW. I've personally convinced a number of people to look at a TDI instead of a hybrid. Perhaps not so much for stop-and-go traffic, but I know buyers who liked the idea that a TDI drove like a normal car and wasn't packed with batteries.