As the U.S. unemployment rate seems to bounce around, it's readily apparent that Volkswagen's Chattanooga, Tennessee plant is going to add to the mess. Unfortunately, initial forecasts for the all-new Passat were a bit too generous and now the oversupply of vehicle's means that VW has to tighten its belt a bit until sales start becoming more fluid.
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Volkswagen is eliminating 500 contract jobs and reducing work shifts at its new assembly plant in Chattanooga, Tenn., to ease an oversupply of the Passat sedan...
..."We had too high expectations," Frank Fischer, the head of Volkswagen's Chattanooga operations, told the Chattanooga Times Free Press. "The pipeline is over-full from the facility to the dealers...
...Volkswagen sold 117,023 Passats in the United States in 2012, the plant's first full year of production, up from 22,835 a year earlier. It sold just under 26,000 of them in the first three months of 2013, a 6 percent increase, though sales fell in March...
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