The dieselgate has drained VW’s vast resources forcing the auto giant to resort to stringent production cuts (read job losses) across its global network to save costs. This move has resulted in VW manufacturing plants across the globe competing with each others to stay profitable. Underperforming plants will be forced to downsize the workforce, forgo planned investment and so on.
VW India’s Chakan plant near Pune recently added third shift and hired 800 employees in a bid to increase its production. In the last fiscal, the facility made more export-spec cars than domestic-spec ones. Achieving the production targets for this year is imperative for the Indian plant to retain its workforce and investment plans in the short term.
So, the VW Ameo compact sedan emerges as a very important product for the plant. The company hopes that the India-specific sedan will bring about 15% growth in production this year. The factory ended 2015 with 1.23 lakh units.
Bookings for the Ameo is set to commence tomorrow (May 12) and initially, only the petrol variants are expected to be available. VW is working on an update for the diesel engine (will get slightly more power) which is likely to be launched by festive season.