Volkswagen to produce diesel at US plant

As construction of the plant in Chattanooga, Tennessee begins, Americans should soon see a whole new product line from VW. Plans are to manufacture a new-generation of U.S. specific clean diesel engines and, possibly, an advanced diesel-electric hybrid. This is in stark contrast to Fords announcement that they are putting their clean diesel plans on hold. Yet with the impressive sales of the Jetta TDI this year it seems that VW might be heading in the right direction.

The news was announced by Stefan Jacoby, the US chief, who confirmed to the Chattanooga Daily that VW will build a diesel version of a brand new mid-sized car in Tennessee. “We don’t see any conflict between business and the economy and the environment,” Jacoby explained. VW will also produce a smaller version of the Jetta at the US plant, which will compete with the Corolla and Civic. No news on if it will have a diesel option yet.

The Chattanooga plant will start production in early 2011, no date on the diesel models yet.