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VW Chops Labor Costs in U.S.
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VW's labor costs at its new plant in Chattanooga, Tennessee, will be $27 an hour in wages and benefits, according to analysts. The comparable cost for Detroit automakers and Toyota and Honda plants is $52 an hour. Over three years VW is expected to increase this to about $38 an hour, according to the Center for Automotive Research, Ann Arbor, Mich. This will enable VW to price the larger version of the Passat it will make in Tennessee at $20,000, instead of the current price of 28,000.
Lower labor costs at VW plants in the southern U.S.
11/29/2006
VW's labor costs at its new auto plant in Chattanooga, Tennessee, will be among the lowest in the industry. Detroit automakers plants and non-unionized Japanese plants have much higher costs. This will enable VW to price its Passat at $20,000 to compete with the Accord.
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Lower labor costs in the range of $27-$38 at VW's Chattanooga plant in the soutern U.S., make it possible to bring the price of the Passat for U.S. buyers down from $28,000 to $20,000.
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