"part of chief executive Martin Winterkorn's strategy to boost sales and reduce the effect of the sinking dollar.... Volkswagen needs the factory to reduce its exposure to the dollar."
"VW picks Tenn. for its 1st US car plant since '88" by Bloomberg News | July 16, 2008
BERLIN - Volkswagen AG, Europe's biggest carmaker, plans to build a plant in Chattanooga, Tenn., resuming manufacturing in the United States to help VW end more than five years of losses in the world's largest auto market.
The factory will begin production in early 2011, employ 2,000 workers, and initially build a midsize sedan developed for the United States, the Wolfsburg, Germany-based company said yesterday.
That's THREE YEARS AWAY!
The plant will be Volkswagen's first in the United States since it closed a factory in Westmoreland County, Pennsylvania, in 1988. US production is part of chief executive Martin Winterkorn's strategy to boost sales and reduce the effect of the sinking dollar, which makes the carmaker's vehicles more expensive in the United States.
Georg Stuerzer, a Munich-based automotive analyst at Unicredit:
"Volkswagen needs the factory to reduce its exposure to the dollar."
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