# Production starts at Chattanooga



## BsickPassat (May 10, 2010)

Chattanooga, Tenn. (14 December 2016) — Volkswagen Chattanooga today marked the beginning of series production of the Volkswagen Atlas. This marks the beginning of the process of building inventory for market introduction of the Atlas in 2017.

“I am very proud of the hard work the Chattanooga team has put in to bring the Atlas to series production,” said Christian Koch, President and CEO of Volkswagen Chattanooga. “The challenge of integrating a new vehicle line while simultaneously completing a major expansion of our facility was daunting, but our team stepped up to the task and now we have taken another step towards the market introduction of the Atlas,” he said.

The Volkswagen Atlas, unveiled on the Santa Monica Pier in October of 2016, launches a new chapter in the company’s American history. The seven-passenger Atlas offers class-competitive levels of technology and room, combined with Volkswagen driving dynamics and attention to detail.

“The Atlas marks a brand new journey for Volkswagen as we enter deeper into the heart of the American market, moving from a small-car brand towards a more family-friendly lineup,” said Hinrich J. Woebcken, CEO of the North America Region, Volkswagen. “We are so proud that this vehicle was not only designed for the American market, but we built it in our factory right here in Tennessee.”

In conjunction with the facilities expansion, Volkswagen Chattanooga continues to grow its workforce to meet the production demands of adding the Atlas to the existing Passat line. Volkswagen Chattanooga currently employs 2800 team members—up from 2400 this summer-- and will continue to bring on board additional employees throughout the ramp up of the Volkswagen Atlas.

The Atlas is built alongside the Passat at the Volkswagen Chattanooga assembly plant, the result of an additional $900 million investment by Volkswagen in the facility. The expansion added over 665,000 ft2 to the facility (a 26% total increase in production space), growing each shop to accommodate the integration of the Atlas.


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## DJMcGoven (Mar 2, 2007)

I really hope this does well for VW. I think they did play it safe with the design but it is still looks typical VW. Now giving VW owners a vehicle to upsize to should help their sales numbers a bit.


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## Zaris (Jun 11, 2010)

My thoughts as well with the design. The silver lining, however, is that the mid-cycle facelift won't be hard for them to improve upon somewhere down the line.

I think the Atlas will capture a lot of attention and buyers. I can't speak for all markets, but here in Los Angeles it is obvious to me that people *have* money. I'm seeing all-new Audi Q7 models left and right. The latest Mercedes-Benz SUVs with their new love-it-or-hate-it design and GL-naming convention is everywhere (GLA, GLC, GLE, et al.). And certainly nothing is stopping people from buying $50,000+ Porsche Macans. German SUVs sell. So I think the Atlas is what people want.


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## Nethers (Dec 2, 2013)

Saw one today










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## DJMcGoven (Mar 2, 2007)

What did you think in person?

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## Nethers (Dec 2, 2013)

capclassicv2 said:


> What did you think in person?
> 
> Sent from my LG-D851 using Tapatalk


Kinda looked like a Jeep Grand Cherokee and an Explorer had a baby. I mean it was intriguing but I think it missed the mark on the price point. Should have been like 30-33k


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## DJMcGoven (Mar 2, 2007)

Nethers said:


> I mean it was intriguing but I think it missed the mark on the price point. Should have been like 30-33k


I believe it is supposed to start at 30k. 

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## Zaris (Jun 11, 2010)

Correct. The target price for the Atlas is $30,000-$45,000 depending on features and options.

Here's a video of the Atlas during its Santa Monica debut on October 27, 2016. The spokesperson interviewed the Volkswagen product range manager and while English may not be his first language, he did touch on a price point (though he did explicitly make clear that it is not yet final).

Skip to 16:02 to go to the start of the interview
Skip to 17:37 for the question regarding pricing






Since he said, "we decided to be really competitive to other brands", here is a short list of its competitors and their starting prices for frame of reference. Some even mentioned by Volkswagen representatives themselves:

2016 Jeep Grand Cherokee: *$29,995* [$995 destination fee]
2017 Honda Pilot: *$30,595* [$900 destination fee]
2017 Toyota Highlander: *$30,630* [$940 destination fee]
2016 Mazda CX-9: *$31,520* [$900 destination fee]
2017 Ford Explorer: *$31,660* [$945 destination fee]
2017 Volvo XC90: *$45,750* (5 Passenger), *$52,250* (7 Passenger) [$995 destination fee]

So you can imagine the Atlas to fall somewhere in here. Well, maybe not the XC90.


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## utsava (Jun 5, 2002)

Zaris said:


> Correct. The target price for the Atlas is $30,000-$45,000 depending on features and options.
> 
> Since he said, "we decided to be really competitive to other brands", here is a short list of its competitors and their starting prices for frame of reference. Some even mentioned by Volkswagen representatives themselves:
> 
> ...


Yeah, in light of VW's weak mindshare in the US, perceived poor reliability, and all this diesel-gate stuff, VW would be crazy to price the Atlas above the competition. Zaris, have you heard anything about incentives or a better warranty program? If VW wants to really move these things and sway American customers, they need to put their money where their mouth is. Unfortunately at this stage in the game, I'm not sure even just matching prices will be enough. Take from the Hyundai playbook and offer a better warranty program. Oftentimes this is the thing that tips the scales for American buyers.


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## DJMcGoven (Mar 2, 2007)

utsava said:


> Yeah, in light of VW's weak mindshare in the US, perceived poor reliability, and all this diesel-gate stuff, VW would be crazy to price the Atlas above the competition. Zaris, have you heard anything about incentives or a better warranty program? If VW wants to really move these things and sway American customers, they need to put their money where their mouth is. Unfortunately at this stage in the game, I'm not sure even just matching prices will be enough. Take from the Hyundai playbook and offer a better warranty program. Oftentimes this is the thing that tips the scales for American buyers.


To your point, I agree completely. I'd love for my next vehicle to be a new Tiguan. But as much as I loved my gen 1, reliability wasn't its strong suit. I'm not sure if a good priced and good driving vehicle is enough for me to return to the brand. A longer warranty would give me confidence in a purchase. 

Truthful, I'm not sure why they aren't considering matching Hyundai/Kia. You can't beat Toyota matching their warranty when you're not as reliable. 

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## utsava (Jun 5, 2002)

capclassicv2 said:


> To your point, I agree completely. I'd love for my next vehicle to be a new Tiguan. But as much as I loved my gen 1, reliability wasn't its strong suit. I'm not sure if a good priced and good driving vehicle is enough for me to return to the brand. A longer warranty would give me confidence in a purchase.
> 
> Truthful, I'm not sure why they aren't considering matching Hyundai/Kia. You can't beat Toyota matching their warranty when you're not as reliable.
> 
> Sent from my LG-D851 using Tapatalk


Right. I'm in the market for an Atlas, and even as a highly loyal VW fan, I have my hesitations. 100k, 10 year warranty would assuage all fears. If VW is really letting VWoA call more shots, VWoA should be all over them for this. We'll see just how much "control" they are ceding outside letting them name the car and add cupholders...


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## Zaris (Jun 11, 2010)

utsava said:


> Yeah, in light of VW's weak mindshare in the US, perceived poor reliability, and all this diesel-gate stuff, VW would be crazy to price the Atlas above the competition. Zaris, have you heard anything about incentives or a better warranty program? If VW wants to really move these things and sway American customers, they need to put their money where their mouth is. Unfortunately at this stage in the game, I'm not sure even just matching prices will be enough. Take from the Hyundai playbook and offer a better warranty program. Oftentimes this is the thing that tips the scales for American buyers.


With regards to incentives or a better warranty program, your guess is as good as mine. Like a lot of factory financial services, Volkswagen Credit discloses programs on a month-by-month basis and are super tight-lipped about releasing anything before the start of a new month. As for changes to the warranty, nothing has been announced yet--and I imagine something as substantial as a longer coverage period will be worth disclosing in a press release that is viewable to all.


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## Rutrack (Jan 7, 2017)

Pending Strike at Chattanooga due to shortage of parts and poor training. Not a good sign!


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## Rutrack (Jan 7, 2017)

Chattanooga Auto Workers to Host Strike Meeting

Labor Notes - 12h*ago


According to several sources, the Chattanooga factory is not meeting its production targets for the new SUV for the North American market, the Volkswagen Atlas. The plant is producing dramatically smaller numbers of the auto due to a lack of parts ...
https://goo.gl/4regTE


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