VW chief to see city plant today

Making a "working visit" to Chattanooga today, Volkswagen AG Chairman Martin Winterkorn is expected to receive a progress report on the automaker's plant construction, according to officials.

This is Mr. Winterkorn's first visit to the $1 billion assembly plant.

"It's a big deal, and it reflects VW's continued commitment," said J.Ed. Marston, the Chattanooga Area Chamber of Commerce's vice president of marketing.

Mr. Winterkorn is to huddle with top leaders at the plant including Frank Fischer, who oversees the car maker's Chattanooga operations. He'll also meet with local government officials and is scheduled to meet with Gov. Phil Bredesen during the trip.

Mr. Winterkorn has been in San Francisco this week, where the automaker showcased the latest version of its Jetta and its electric vehicle efforts. He also highlighted the car company's initiatives in the United States, where officials are aiming to triple sales to about 1 million vehicles annually, including Audi.

"Our path to global leadership also leads through the United States, because we have considerable growth opportunities here," Mr. Winterkorn said. "Our goal is to turn Volkswagen into the leading volume brand here as well."

VW holds only about 3 percent of the U.S. market, compared to 11.4 percent worldwide in 2009, according to the company.

Production at the Chattanooga plant, which is scheduled to employ more than 2,000 people, is to start early next year.

Tim Spires, the Chattanooga Manufacturers Association president, said he's glad the VW chief is coming to see what the city has to offer.

"It affirms the Chattanooga area as a strong manufacturing area," he said.

Volkswagen is trailing Toyota as the No. 1 automaker in sales worldwide, but it's aiming to reach the top spot by 2018 with more help from North America.

Analyst Erich Merkle of autoconomy.com said the U.S. market can't be ignored because of its size.

"It's been down over the last couple of years. We will get back up to trends," he said, citing sales of about 15 million units.

He said that given VW's position in the U.S. market, "they could do a lot better."

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