new diesel engine plant in Poland

Dr. Piech

Veteran Member
Joined
Jul 16, 1999
Location
Middleton, Wisconsin, USA
TDI
none
Perhaps this will help get more TDI's into the supply pipeline...

POLKOWICE, Poland -- Volkswagen AG opened a factory in Poland to build engines for the full line of VW-brand vehicles.
The company said it invested 100 million deutsche marks ($53 million or 50.8 million euros) in the factory, which will build four-cylinder diesel engines to be delivered to 19 VW assembly plants. The motors can be used in either cars or light trucks.
The factory has capacity to build as many as 540,000 engines a year and employ up to 650 people, though only 350 workers are employed there now.
"Polkowice will be an important leg in the structure of the aggregated factories of our concern," said VW Chief Executive Ferdinand Piech in a statement.
 

jtm

Well-known member
Joined
Aug 20, 1999
I've heard about all the problems with first year Jettas and Beetles from the Mexican plants. I don't believe Mexican or Polish workers are any worse than German workers, but it seems VW plants (and probably other companies) need a little time to get the bugs out (no pun intended). Wouldn't want a VW with the first engines from that Polish plant.

Tai

[This message has been edited by jtm (edited August 29, 1999).]
 

Strack

Veteran Member
Joined
May 10, 1999
Location
HAckensack, NJ USA
It sounds like VW forsees a large market for their diesel powerplants. In Europe where motor fuel is taxed beyond belief, diesel would seem to be very popular. First generation VW products do tend to be somewhat troublesome, but let's wait and see.

VW's assembly plant in PA, was quite a effiecient operation, but compared to incredibly low labor and tax costs in Mexico, any US or Industrialized European operation would be doomed. I'm sure the labor cost are quite low in Poland. Remember, follow the money trail when searching for at least part of the answer.
 

dalcorn

Member
Joined
Aug 15, 1999
Location
Chicago, IL USA
I do not follow the automotive industry, but my impression was that engine plants were supposed to be expensive. VW's capital investment in this plant is less than $100 per engine (annual production capacity). VW has a lot on its plate to rationalize production equipment, order supply and delivery chains, train workers, and reach rough consensus with the work force regarding work practices. Lets hope that they execute well and that those greedy Europeans do not keep all the TDI's for themselves.
 
M

mickey

Guest
Finally! This is the news I've wanted to hear for a long time. I don't care where they make the things, as long as they make a lot of them!

-mickey
 
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