Volkswagen Reported to Be Discussing Production in India

Europe's largest carmaker, Volkswagen AG, is reported to be visiting Andhra Pradesh to discuss a deal in setting up a VW automobile plant. The state's industry minister stated that "They are expected here in a few weeks to sign a Memorandum of Understanding with the state government."

Volkswagen spokesmen could not be reached for comment on the matter. Several foreign carmakers such as Toyota Motor Co., Hyundai Motor Co., Suzuki Motor Co. and Ford Motor Co. have Indian facilities to address the growing demand for automobiles in India, Asia's fourth largest economy.

The proposed Volkswagen plant, which will initially assemble cars from completely knocked down kits, will be set up in Vishakhapatnam on the eastern coast of India. State officials said Volkswagon had already approved a factory site in October.

Volkswagen Awards Grammer Automotive Best Supplier Award

Grammer vice president, sales and marketing in the Americas, Juergen Huertgen, reported that out of 350 VW suppliers, Grammer was one of four to recieve the Best Supplier Award from Volkswagen’s Truck and Bus Division. Grammer is a leading supplier of specialty automotive seating systems.

Grammer’s Atibaia, Brazil operations make 100 percent of all Volkswagen truck and bus seats. “Grammer’s product teams in Brazil and Germany share this honor,” said Huertgen. “Together, they worked hard to support Volkswagen’s manufacturing operations.”

The Atibaia manufacturing facility also produces fully trimmed head restraints for the Golf A4, Polo and the Audi A3, all built by Volkswagen in Curitiba and Sao Paolo, Brazil. The 215,000-square-foot Grammer facility in Atibaia has supplied Volkswagen in Brazil since 1989.

Huertgen added that the plant is ISO/TS 16949 certified and the 450 employees work under strict and lean principles. The Cut and sew, stamping and assembly, welding, painting, banding and foaming operations are all supported by a small prototype shop.

VW Recalls Golf, Jetta, Passat & GTI

The National Highway Transport Safety Administration announced Volkswagon is recalling 369,284 cars for possible defects that include leaking fuel pumps and defective hazard light switches.

19,284 Jetta, Golf, Beetle and Passat 2004-2005 cars are reported to have been recalled for leaking diesel fuel pumps that could possibly lead to fires. 300,000 Golf, GTI and Jetta 2000-2002 automobiles are also being recalled due to the hazard switch and flasher system that could malfunction as a result of high electrical current load from turn-signal bulbs.

The NHTSA also announced that Toyota is recalling 150,061 2004-2005 model Lexus ES 330 and Camry sedans due to a component in the seat belt buckle that could loosen when a rear-facing infant child seat is installed on the front passenger seat, which could lead to the front passenger side airbags deploying.

VW Names South Korea its Third Largest Asian Car Sales Market

Company officials from VW announced that they have designated South Korea as a key Asian market, following China and Japan. "As we judged recently that the market potential of South Korea is large, we designated it as our third key market in the Asian region," a Volkswagen official stated.

Volkswagen hopes to increase annual car sales in South Korea to 5,500 units over the next four years, and is poised to extend annual deliveries to South Korea, Asia's fourth-largest economy, to 1,500 vehicles in 2005. Volkswagen, the world's fourth-largest automaker, recently decided to take over imports of its cars in South Korea starting next year. The company had previously been selling cars in the region through Gojin Motor Imports since 2000. Gojin will still be Volkswagen's local dealer.

Volkswagon, which first began selling cars to South Korea in 1989, has seen sales decline 12.5 percent year-over-year to 785 units in the January-October 2004 period. VW will be expanding the number of showrooms to 20 over the next five years from the current three.

VW's move follows the launch of the South Korean subsidiary of Audi AG, Volkswagen's luxury model line, in October. Volvo recently announced their decision to increase marketing in South Korea as well. Volvo will be offering the Volvo XC90 in May 2005.

VW to Increase Jetta Production in Mexico

VW recently announced it plans to increase production of the Volkswagon Jetta to 320,000 cars at its Mexico plant in 2005, about 90,000 more units than this year. "Hurt by slow sales in the United States, Volkswagen's Mexican arm produced 20 percent fewer autos this year than in 2003, when its plant outside the colonial city of Puebla built 287,000 units, stated Thomas Karig, Volkswagen's cooperate relations director.

"The new VW Jetta, branded as the VW Bora in Mexico, will be produced in a new section of the Puebla plant, where workers will be assembling parts from Brazil, Karig continued. "Production of the overhauled Jetta will account for 200,000 of cars the Puebla plant will produce in 2005." Volkswagen's only North American assembly plant, has 13,300 workers and is also the only place where the new Beetle sedan and convertible are assembled. About 70 percent of the cars are exported.

"VW has been producing about 70,000 new Beetles per year and will try to maintain that level, said Karig. Puebla is the only assembly plant outside of China that makes the new Jetta model, which will be replacing the older model everywhere but in Mexico. In November 2004 the Puebla facility shut down entirely so VW could lower inventories and prepare for assembly of the new Jetta.

Karig said "The euro's rise against the dollar gives the company a chance to take greater advantage of the facility Mexico."

Volkswagen Relaunches VW Online Press Portal

Volkswagen has recently relaunched the Volkswagen Press Portal. Aperto, a multimedia service provider, reportedly used Day Software Communique to develop the platform on which the service is based.

VW explained that journalists will now have quicker access to the latest VW news and digital press folders, as well as to new offerings, such as broadcast-quality videos and audios. Volkwagen was reportedly pleased with Aperto's ability to launch the website utilizing Day Software's Communique.

According to Volkswagen, individual information packages are now available for download comprising press releases, background reports and photos 24 hours a day. The extensive photo materials collection was extended with the feature "light table." The electronic light table allows users to compare several photos in one view, making it easier to decide which photos best suit one's requirements, for example the first pictures of the new VW Golf Plus.

The "Press Release Subscription" feature on the portal allows users to compile a personal information folder and users can also subscribe to press releases dealing with topics of interest. Journalists can now also readily find the correct contacts at Volkswagen Group Communications and within VW's respective brands.

Volkswagen to Assemble VW Trucks in United Arab Emirates

Volkswagen AG announced it will begin assembling heavy trucks in the United Arab Emirates starting in 2006. A VW spokesman said, "The company plans to begin with 1,000 commercial vehicles before expanding production to 3,000. A cooperative contract between the company and the emirate of Abu Dhabi was signed."

The UAE-Volkswagen deal will also promote lease planning and fleet management in the region. "The main purpose of the venture is to set up an automotive zone in Abu Dhabi," sources explained. Volkswagen also stated that its vehicle deliveries in the first 11 months of 2004 rose 1.6%, boosted mostly by the sales of commercial VW vehicles. Deliveries rose to 4.61 million vehicles from 4.54 million in the same period a year ago, said VW officials.