published Wednesday, January 22nd, 2014

VW's U.S. operations a 'disaster,' official says

Volkswagen’s top labor representative has dubbed the carmaker’s U.S. operations a “disaster,” urging more models and swifter decisions to help revive the German group’s fortunes in America, according to Reuters.

Bernd Osterloh, VW’s works council chief, told reporters in Wolfsburg, Germany, today that a year after the CrossBlue sport utility vehicle was unveiled, it’s still unclear where the model will be built. Chattanooga is said to be the frontrunner to make the SUV, ahead of VW’s Mexico operations, and a decision is expected soon.

VW’s situation in the U.S., where the company has been grappling with losses for years, won’t improve until 2016 and it needs more models there, including a pick-up truck, Osterloh said.

Osterloh echoed criticism from the company’s new head of U.S. operations, Michael Horn, who earlier this month faulted VW headquarters in Germany for paying little heed to the dynamics of the U.S. market.

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