Volkswagen and Chrysler to team up
01-05-06, 12:45 PM
#1
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Volkswagen and Chrysler to team up
Volkswagen-Chrysler may build new vans in Windsor
Last Updated Thu, 05 Jan 2006 12:02:19 EST
CBC News
Volkswagen AG will work with DaimlerChrysler AG on a Volkswagen minivan for the North American market, with production starting in 2008, possibly in Windsor, Ont.
Chrysler will build the minivans either at the Chrysler plant in Windsor or in St. Louis, Mo., Volkswagen chairman Wolfgang Bernhard told reporters at the Los Angeles Auto Show.
Volkswagen, Chrysler may build joint van in Windsor
The minivan will be based on the next-generation Dodge and Chrysler minivan platform, but Volkswagen will design the interior and exterior.
"We're developing a design that will be uniquely Volkswagen's because we believe there's tremendous opportunity in this market for a vehicle of this type," Bernhard said in a statement.
Bernhard predicted sales of 10,000 minivans annually once the vehicle hits the market, a fairly conservative estimate. The company sold 18,050 Touareg sport utility vehicles, its largest current vehicle, in the United States in 2005.
The deal allows Volkswagen to save production costs on a new van that would replace the aging lineup of Dodge and Plymouth minivans.
Volkswagen sales were off 12 per cent in 2005 from the year before, according to figures released Wednesday. The company lost more than $1 billion US in North America, where it was hurt by fierce competition and a weak dollar.
"The United States is the litmus test for our competitiveness. We won't run away from that," Bernhard said.
The deal also helps Chrysler make better use of its North American plants. Chrysler was using 90 per cent of the capacity of its 13 North American plants in 2004, compared with 100 per cent capacity at rival Toyota Motor Corp., according to the most recent Harbour Report, which measures plant productivity.
"This is a win-win deal for both Chrysler Group and Volkswagen," Chrysler Group CEO Tom LaSorda said in a statement.
LaSorda said Chrysler plants are flexible enough to produce minivans tailored for Volkswagen with little or no effect on the Dodge and Chrysler lineup.
Chrysler has already announced plans to invest $575 million in Windsor for its new minivan.
FROM NOV. 21, 2005
aimlerChrysler confirms $768M investment in Canadian operations
Financial terms of the deal weren't disclosed. Bernhard said an official agreement will be signed at the North American International Auto Show, which is this weekend in Detroit.
CBC News
Volkswagen AG will work with DaimlerChrysler AG on a Volkswagen minivan for the North American market, with production starting in 2008, possibly in Windsor, Ont.
Chrysler will build the minivans either at the Chrysler plant in Windsor or in St. Louis, Mo., Volkswagen chairman Wolfgang Bernhard told reporters at the Los Angeles Auto Show.
Volkswagen, Chrysler may build joint van in Windsor
The minivan will be based on the next-generation Dodge and Chrysler minivan platform, but Volkswagen will design the interior and exterior.
"We're developing a design that will be uniquely Volkswagen's because we believe there's tremendous opportunity in this market for a vehicle of this type," Bernhard said in a statement.
Bernhard predicted sales of 10,000 minivans annually once the vehicle hits the market, a fairly conservative estimate. The company sold 18,050 Touareg sport utility vehicles, its largest current vehicle, in the United States in 2005.
The deal allows Volkswagen to save production costs on a new van that would replace the aging lineup of Dodge and Plymouth minivans.
Volkswagen sales were off 12 per cent in 2005 from the year before, according to figures released Wednesday. The company lost more than $1 billion US in North America, where it was hurt by fierce competition and a weak dollar.
"The United States is the litmus test for our competitiveness. We won't run away from that," Bernhard said.
The deal also helps Chrysler make better use of its North American plants. Chrysler was using 90 per cent of the capacity of its 13 North American plants in 2004, compared with 100 per cent capacity at rival Toyota Motor Corp., according to the most recent Harbour Report, which measures plant productivity.
"This is a win-win deal for both Chrysler Group and Volkswagen," Chrysler Group CEO Tom LaSorda said in a statement.
LaSorda said Chrysler plants are flexible enough to produce minivans tailored for Volkswagen with little or no effect on the Dodge and Chrysler lineup.
Chrysler has already announced plans to invest $575 million in Windsor for its new minivan.
FROM NOV. 21, 2005
aimlerChrysler confirms $768M investment in Canadian operationsFinancial terms of the deal weren't disclosed. Bernhard said an official agreement will be signed at the North American International Auto Show, which is this weekend in Detroit.
01-05-06, 02:11 PM
#2
Lexus Fanatic
A VW-Chrysler partnership is nothing new.....one existed in the late 1970's. Chrysler gave VW its New Stanton, PA assembly plant near Pittsburgh in return for VW in-line 4-cylinder engines for the 1978-80 Dodge Omni and Plymouth Horizon FWD subcompact....Chrysler's first domestic-designed subcompact and first FWD car. Chrysler at the time designed the car but didn't have any 4-cylinder engines for it so they turned to VW. VW, in turn, got the New Stanton plant so it could build expand Rabbit ( Golf ) production for the U.S. market.
I had a 1978 Horizon...brand new. Aside from good winter traction from FWD, which was hard to find in those days on a regular car, It was an almost complete POS.....one of the worst new cars I ever owned. Chrysler products, unfortunately, except for the slant-six and 318 engines, were to remain POS'es for years afterward....as did some VW's.
I had a 1978 Horizon...brand new. Aside from good winter traction from FWD, which was hard to find in those days on a regular car, It was an almost complete POS.....one of the worst new cars I ever owned. Chrysler products, unfortunately, except for the slant-six and 318 engines, were to remain POS'es for years afterward....as did some VW's.
Last edited by mmarshall; 01-05-06 at 02:15 PM.
01-06-06, 05:33 AM
#3
Another joint venture by Chrysler? I remember years ago their joint venture with Maserati. The crappy Chrysler TC. I hope history doesn't repeat itself. It sems chrysler is on the right track with the products they came out with lately.. Now the resurrection of the Dodge Challenger is on the way 
Look out.
Look out.
01-06-06, 10:08 AM
#4
Lexus Fanatic
Originally Posted by DASHOCKER
. Now the resurrection of the Dodge Challenger is on the way Look out.
Look out. 
...along with the new Mustang. Just hope the Challenger is built with better materials...the Mustang, while beautiful, IMO is horribly cheap inside and out. Dodge has not made a firm decision to build it yet. Much of that will depend on the reception it gets at the Detroit Show.
Back to the original topic....the new VW-Chrysler minivan. If this project gets the green light, it will be interesting to see how it does against the upcoming Hyundai Entourage. Hyundai, unlike Chrysler and VW, has a growing reputation for better and better quality each year.
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