MICHIGAN – The war in Ukraine will help increase the supply of Volkswagen (VW) dealers in the United States as the automaker shifts more of its production to North America and China.
Speaking at the automaker’s annual press conference, VW Chief Executive Herbert Diess said the company would increase production at its factories in Chattanooga and Puebla, Mexico.
It also spurred car production at the Audi factory in San Jose Chiapa, Mexico. This means that the production of Atlas, Atlas Cross Sport, Tiguan, Taos, and Audi Q5 will increase.
Diess noted the change came because the war had forced automakers to reduce capacity at some European plants.
It will also reallocate semiconductors destined for Europe to North America and China.
While it’s unclear when the production changes will take place, VW’s National Dealer Advisory Board Chairman Tom McMenamin told Auto News that dealers in the US are hopeful that additional vehicles can be shipped to them from North America.
“This will make all the difference in the world for dealers, and it will give us a competitive advantage in our market because we will have the product and most of our competitors will not,” McMenamin added. ).
During 2021 Volkswagen sold 375,030 vehicles in the US, a 15 percent increase from 2020 sales.