CHATTANOOGA, TN – Volkswagen is working toward its goal of pumping out nearly 200,000 Passat sedans annually from its new U.S. plant by hiring additional workers and streamlining assembly duties.
The auto maker has made good on its plan to add a third shift here, bringing its total head count to 3,300. The hiring process for new employees was completed in June, and the workers will be on the assembly line as early as September, executives say.
Each of the manufacturing operation’s employees, from line worker to top-level management, has a crucial role in VW’s quest to become the world’s largest auto maker. Chattanooga is ground zero for many new initiatives to be carried out in Volkswagen’s plants worldwide, with an increased focus on quality control.
An all-hands-on-deck approach gives VW the opportunity to continuously rectify lingering defects and other nicks and dings. Factory workers are asked to give driving impressions of the Passat and rate it against competitors.
Two dozen or more engineers complete audits of a vehicle fresh off the line twice daily to make sure every body panel fits, every knob clicks and every bolt is tightened.
Engineering data and driving impressions, both compiled with customer feedback, social-media response and the all-important J.D. Power & Associates surveys, are processed and regularly sent to headquarters in Germany. Some issues are solved on the ground in Chattanooga, and occasionally backup is called in from abroad.
It’s all part of VW’s “Passion for Detail” initiative, a philosophy spread throughout its operations. The auto maker is on track to produce 150,000 Passats this year and another 180,000 units in 2013, and there is little room for mistakes.
“I don’t say ‘I’m proud’ often, but I really have to say I’m proud of my team here,” Marc Trahan, vice president-quality control for Volkswagen of America, tells reporters here.
The aggressive quality approach comes as VW struggles to find footing with J.D. Power. A recent Initial Quality Survey ranks the auto maker 31st out of 34 brands in driving impressions. “It didn’t turn out as we hoped,” admits Frank Fischer, chairman of VW Chattanooga.
Recent recalls plaguing auto makers, particularly Ford and Chrysler, also have heightened attention to detail. “I have empathy for them,” Trahan says. “I’d hate to be there like that.”
Although IQS scores aren’t to VW’s liking, there are signs of quality improvement. Executives say warranty claims for the Passat have dropped 12% in the past six months, and predict fewer claims throughout the remainder of the year.
“That’s reflective of a new plant, new people and new technology,” Trahan says. “We will be able to say unequivocally that we are the leading manufacturer.”
The Chattanooga factory, which is targeted at full capacity next year, is built on 1,400 acres (567 ha) of land, with room for expansion. With an influx of employees, the auto maker has taken steps to increase efficiency to keep the wheels turning.
“Every car is taken for a short road test,” Trahan says, noting a different employee drives a different model each time.
Engineers here also regularly analyze what’s called a “butterfly report,” which includes data about all parts of the Passat’s body and where problems arise. Code numbers, for everything from paint overspray to door handles to fenders being flush, are assigned to each issue and used worldwide.
VW’s most notable innovation is in the paint shop. Previously, the OEM standard was employed, calling for a layer of e-coat, followed by primer, a base coat and a clear coat. At Chattanooga, VW has eliminated the use of primer and switched to a thicker base coat.
The auto maker also has introduced a limestone-dust dry scrub for paint drying. Bodies are placed in a chamber where the powder absorbs excess paint without leaving a residue.
Eliminating the popular process of water drying keeps thousands of gallons of dirty water from entering the environment, and even limestone dust that has absorbed paint can be recycled in the drying process. VW says this process is the only one of its kind in the U.S. and soon the technique will be employed at its Touraeg plant in Slovakia.
One less coat of paint also means one less oven for drying, something executives say speeds up the churn of Passat production. “I came here from another automotive plant, and I’m sold on this system,” Frank Stewart, a paint-shop maintenance worker,” tells WardsAuto. “I was a doubter when I first came here.”
In the body shop, VW has adopted what it calls a “jellyfish philosophy,” where all single parts are produced there. For supplier parts, the auto maker keeps in close contact with third parties, routinely bringing assemblers to Chattanooga during “supplier integration days” for dialogue with its own employees and vice-versa.
“We believe that really helped us build a strong connection with many of our suppliers,” Trahan says, noting VW is hoping to avoid the rocky OEM-supplier relationships other auto makers have faced.
VW has aggressively recruited young Chattanooga-area residents through several educational programs: A partnership with two local colleges that trains apprentices and guides them toward a bachelor’s degree, an intensive 6-week program for more experienced laborers that places them directly on the assembly line after completion.
“Chattanooga is now on the map in East Germany and here in the U.S.,” Guenther Scherelis, general manager-communications, says.
VW’s presence also has attracted third-tier suppliers to the area, creating 2,000 additional jobs, executives say.
All of this dovetails with talk of possibly pushing annual Passat output past the 200,000-unit mark. For now, executives are playing it safe. “We will exceed what we planned for 2012, and we feel confident about that,” Trahan says.
