Volkswagen's timing on the new midsize sedan it will make in Chattanooga is right on and the automaker is primed to grab U.S. market share, suppliers say.
VW plans to publicly unveil the sedan at the Detroit auto show in January and sell the vehicle in the second half of next year.
Steve Barr, chief executive of Chattanooga Seating Systems, said VW is a huge player worldwide - except in North America.
"We smell a lot of growth and opportunity," he said. His company will supply seats for the new sedan from the supplier park next to VW's plant.
The VW brand's September sales in the U.S. grew 14 percent over a year ago to 19,943 vehicles, according to the German automaker.
For the year, VW sales are up about 21 percent to 192,690.
Seeking to return U.S. operations to profit no later than 2013, VW is targeting 67,000 sales of the sedan next year, Jonathan Browning, VW's new U.S. chief, said Tuesday at a conference in Wolfsburg, Germany, according to Bloomberg. Annual deliveries of the vehicle, whose name will be unveiled next year, may reach 150,000 from 2012, he said.
The economy is coming back and people will want to buy the sedan because it's new, said Rod Shaw of M-Tek Inc., which will provide headliners and door panels for the sedan.
"It's a very good-looking vehicle," he added. VW already is making trial vehicles in Chattanooga.
Jeffery Hurley, senior vice president of logistics supplier Ceva, said he's confident VW's sedan will be a hit.
"VW is a successful global player," he said.
TOP 10 SELLERSAutomaker and Jan.-Sept. percent change in vehicle sales over 2009:* Maserati, up 43 percent* Porsche, up 24 percent* Subaru, up 22 percent* Volkswagen, up 21 percent** Ford, up 19 percent* Jaguar/Land Rover, up 18 percent* Hyundai Group, up 17 percent* Nissan, up 16 percent* Chrysler, up 15 percent* Daimler, up 15 percent* Includes Audi and BentleySource: Automotive News
Barr recalled that the world economy tanked shortly after VW announced in July 2008 it would build a $1 billion plant in Chattanooga.
"VW's timing in 2008 and 2009 was so in a ditch," he said.
But VW didn't falter and pushed ahead with construction of the 2 million-square-foot factory at Enterprise South industrial park. Production is to start early next year.
Still, VW's new vehicle will join what's likely the most competitive car category in the U.S. The sedan will vie for market share with Toyota Camry, Honda Accord, Hyundai Sonata, Ford Focus and Chevy Malibu among others.
VW's new sedan, expected to be priced around $20,000 to compete with rivals, will replace the existing Passat. The carmaker sold 11,356 Passats through September.
The plant has the capacity to produce 150,000 vehicles a year.
Bloomberg contributed to this story.