2026-27 Capstone

Volkswagen Revival

Older gasoline powered Volkswagen

Volkswagen has a plan to bring a vast majority of to production due to increasing tariffs, the increased amount of jobs being offered within the company, and other companies' technological advancements they want to compete with.

"Tariffs have brought fresh urgency to the question of localizing production in America. In Chattanooga, Volkswagen only makes its Atlas and Atlas Cross Sport SUVs," (Berger 2026).

Due to the fact that tariffs have increased, in turn the cost of production in other countries and imported to the U.S. will in turn increase the cost of importing projects.

"Volkswagen plans to slim down leadership teams and reduce its workforce by 50,000 positions, on top of roughly 50,000 already agreed to over the past two years (WSJ)," (Berger 2026).

Cutting down a workforce decreases the amount of available opportunities for individuals in America.

"Executives have said the truck will feature technology designed to compete with Tesla and upstart Chinese automakers, with a price tag similar to mainstream sedans and SUVs," (Berger 2026).

During a meeting with the Honda Research and Development team, they mentioned the Chinese being very ahead in the automotive industry. Due to their futuristic and advanced development, they are able to excel at a faster rate compared to cars manufactured and sold in America.

Reflection

I believe Volkswagen is a great example of the decisions made within a company. In the article it mentioned, higher tariffs, cutting workforce, and advanced technology that will put the company ahead of its time in the U.S. if their plan is successful. I think creating a product that can be generated in-house with the resources we have in the U.S. will decrease the cost of production, continue to cater to individuals at Honda who need jobs, and allow Honda to maintain the value of their products.

Reference

Berger, P. (2026, September 4). Volkswagen Aims to Revive U.S. Business. The Wall Street Journal. https://www.wsj.com/logistics-report/volkswagen-aims-to-revive-u-s-business-492ff7da

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