The factory employs more than 3,200. And that's without new SUVs on sale yet. The company suffered considerable damage to its reputation on a global basis in the wake of the diesel emissions scandal and is now seeking to redress this with a six-year, 72,000 mile warranty for two of its new SUVs.
VW said most other major rivals offer a 36,000 mile, three-year warranty on similar SUVs. The longer bumper-to-bumper warranty is also transferable to a subsequent owner. The new warranty coverage provided by VW surpasses the industry-leading 60,000 mile or five years warranty coverage offered by competing vehicle manufacturers Hyundai Motor Co. and Kia Motors Corp. The rest of VW's US lineup will retain the standard three-year/36,000-mile bumper-to-bumper warranty that is the auto industry standard.
Reuters, Forbes and The Wall Street Journal all reported yesterday that Hinrich Woebcken told reporters that Volkswagen would build the smaller SUV in Tennessee. The powertrain warranty is 100,000 miles, but it only lasts five years or 60,000 miles if transferred. The automaker halted all USA diesel sales in late 2015.
VW, the largest automaker worldwide by sales, will start selling its new seven-seat VW Atlas SUV next month. SUVs' share of US vehicle sales rose to almost 40 percent in 2016 from 32.6 percent in 2014.
In March of this year, Volkswagen pled guilty as part of a settlement over the automaker's emissions scandal, which largely involved its fleet of diesel cars and trucks. "All you have to do is say you are sorry and give them a deal", AutoNation Inc. Woebcken has stated that the focus within the USA will be shifted to a "family friend" automaker that will offer larger, US -built SUVs.