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NewsVolkswagen Says It Will Increase U.S. Production By Partnering With Ford Following White House Meeting

00:45  07 december  2018
00:45  07 december  2018 Source:   jalopnik.com

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Following a meeting with President Trump on Tuesday, Volkswagen CEO Herbert Diess gave a public run through of the company’ s potential options for increasing American-based automotive production . Chief among the day’ s talking points, Volkswagen ’ s alliance with Ford Motor Co. and a

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Volkswagen Says It Will Increase U.S. Production By Partnering With Ford Following White House Meeting© Image: AP Images

Following a meeting with President Trump on Tuesday, Volkswagen CEO Herbert Diess gave a public run through of the company’s potential options for increasing American-based automotive production. Chief among the day’s talking points, Volkswagen’s alliance with Ford Motor Co. and a potential use of the Blue Oval’s U.S. plants to build cars.

Volkswagen and Ford announced a strategic alliance back in June. It’s been progressing slowly, but both manufacturers were optimistic as talks continued through October. While nothing is set in stone yet, both the German and American manufacturers expect to make progress on the deal in January. As of now, it does not appear that either company would take any stake in the other.

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Volkswagen Says It Will Increase U . S . Production By Partnering With Ford Following White House Meeting . Rockefeller Plaza, San Francisco, S .F. News Directory is a collection of powerful news brands that deliver top stories on our platform.

Increased US investment. White House economic adviser Larry Kudlow also said the goal was to Volkswagen is in talks with the Ford Motor Company about a partnership to build VW vehicles at some Last week, the company said it was considering building a second manufacturing plant in the

Diess also noted that the company was “considering building a second car plant” in the U.S. market. This would be in addition to the company’s Chattanooga, TN plant which produces the Passat and Atlas models. Given the fact that GM is closing a few of its automotive production facilities, perhaps VW could step into one of those, netting some serious good will points with the local workforce.

The third option would be an increase in automotive production capacity at the company’s existing Tennessee plant. This would preclude Volkswagen from needing to negotiate with the United Auto Workers. Were Volkswagen to produce cars in a Ford plant, a shuttered GM plant, or a potential future VW plant, collective bargaining would certainly be part of the discussion. Thus far workers have been unable to unionize in VW’s lone stateside plant.

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Volkswagen AG' s Diess and Steg arrive to meet with Trump administration officials at the White House in Washington. Diess said VW would not take an equity stake in Ford as part of its alliance. "We are building an alliance with Ford which will strengthen Ford ' s position in Our Apps. Follow us .

We already knew that Volkswagen is partnering with Ford on commercial vehicles. We also found out there' s a chance VW will make cars for Ford in Whatever the automakers cook up, it will not involve VW taking an equity stake in Ford , Diess confirmed. Diess made the comments after a meeting at the

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It would seem to me that Diess was saying things the President might enjoy hearing, perhaps without any actual immediate plan for follow through. When Automotive News reached Bill Ford for comment, he stated “We haven’t gotten that granular in our talks yet, but clearly we are talking with them [Volkswagen].” By perhaps placating Trump with promises of future U.S. jobs, it is likely Diess was hoping to side step or waylay the import tariffs the president has tweeted about.

Volkswagen was joined in Washington at the request of the White House by Daimler AG CEO Dieter Zetsche and BMW CFO Nicolas Peter. BMW and Daimler in particular are afraid of retaliatory tariffs on the cars and SUVs they build in the U.S. which are frequently exported to China. VW, meanwhile, would take a huge profit hit if Trump’s proposed 25% EU importation tariff were to be implemented.

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Volkswagen ' s chief executive said on Tuesday after a meeting at the White House that the German automaker was building an alliance with Ford and that they might use the U . S . automaker' s plants to build cars. VW CEO Herbert Diess said the company was also "considering building a second car

Ford might be or might not be planning big layoffs, Care by Volvo is pissing off Volvo dealers, and Hyundai reportedly wants to make a special factory where workers get 6th Gear: ICYMI. Volkswagen Says It Will Increase U . S . Production By Partnering With Ford Following White House Meeting .

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