The plant opened yesterday in Tennessee and VW will build a Passat designed for the U.S. market at the factory.
Making cars in the United States allows the company to keep close track of changing tastes in the world's No. 2 auto market, where consumer trends often originate. It also allows Volkswagen to show its commitment to the U.S. market. The company aims to nearly triple its sales in the United States to 1 million vehicles in 2018 from about 360,000 in 2010.
The Japanese are stronger than VW in North America because they are already producing there. VW ended 2010 with just a 3 percent market share in the U.S. while Toyota had about 15 percent, with General Motors Co at 19 percent. It's a good time to push for growth in the U.S. as the auto industry is on the rise.
The company's push for growth comes as GM, Ford and Chrysler are offering more attractive and fuel-efficient vehicles in the U.S. GM and Ford enjoy a popular stable of small and mid-sized cars, including the Chevrolet Cruze and the Ford Fusion. The Toyota Camry ranked No. 2 in U.S. sales in April, while Honda's Accord was No. 5.
