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Monday, 15 June 2009 10:50

VW Sales Increase, Announces Parts Supplier Plan

Volkswagen announced on June 12 that their sales in May grew by 1.5 percent as the German carmaker continued to buck a downward international trend.

Total deliveries amounted to 556,700 compared to 548,500 the same month a year ago.

For the first five months, VW sold 2.49 million vehicles, down 7 percent, according to the company. Worldwide, the auto market was down about 20 percent in the period.

In North America, VW vehicle sales were 42,200, down 10.7 percent, the company said. VW has said it wants to triple the number of cars it sells in the United States, hitting 1 million by 2018.

Tennessee plant to use 85% North American suppliers

Separately, VW has said it plans to use North American suppliers for 85 percent of the parts and components in the new sedan it will make in Chattanooga, TN, according to the company. The plant is scheduled to be in production in 2011 at Enterprise South industrial park.

VW has a stated goal of 80 percent North American content in the vehicle, but it would like to push that number even higher

"That's a very lofty goal for a brand-new plant producing a brand-new vehicle," , VW spokeswoman April Wortham said. The number of supplier jobs is expected to top the 2,000 people to be employed by the VW plant.

VW already has set up a 75-member purchasing group in the city to find and deal with suppliers for the new vehicle, Ms. Wortham said. The group here is operating independently from one in Puebla, Mexico, site of VW's only other North American plant, she said.

"Once a supplier is identified, it must go through several layers of approval," she said, which includes approval from the German parent company.

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