VW Dealers To Get More Crossovers Because of Ukraine Conflict
Volkswagen Group will shift production to China and North America after wire harness and other material shortages from Russia's invasion of Ukraine impact European production.

Volkswagen
The Ukraine-Russia conflict will put more new crossovers on the lots of U.S. Volkswagen dealerships in upcoming months.
CEO Herbert Diess told reporters at a press conference that the German automaker would shift more production to North America and China, at least temporarily, as a result of the war.
The move is expected to increase output from VW-brand plants in Chattanooga and Puebla, Mexico, as well as the Audi plant in San Jose Chiapa, Mexico, all of which assemble crossovers mostly sold in the U.S. Chattanooga produces the VW Atlas and Atlas Cross Sport and builds non-saleable pilot versions of the ID4 battery-electric crossover. Puebla assembles the VW Tiguan and Taos. The Audi plant produces the popular Q5.
VW’s China plants will also benefit, as microchips destined for use in Europe are reallocated to China and North America.
The most significant supply chain constraint at the moment are wire harnesses produced in Ukraine, Diess said. If VW cannot reallocated production (from Germany to other plants) in three to four weeks, the automaker’s outlook will need revision, Diess said.
Diess also warns semiconductor shortages, supply bottlenecks, high commodity prices and the Russia-Ukraine conflict will trim growth in 2022 as challenges mount against the auto industry.
VW brand sold 375,030 vehicles in the U.S. in 2021, up 15% from 2020. About 73% of these sales were crossovers. The automaker captures 2.5% of U.S. auto sales and when sales from other group brands, Audi, Porsche, Bentley and Lamborghini, are included its market share jumps to 10%.
Tom McMenamin, chairman of the VW National Dealer Advisory Council, confirmed dealers will see more North American-built vehicles heading to their lots in 2022. He speculated that getting more crossovers from Chattanooga and Puebla for VW's 638 U.S. dealerships will allow the brand to gain U.S. market share as other automakers struggle with their own supply constraints
Originally posted on Auto Dealer Today
More Industry

Charger Network Growth Slows
Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.
Read More →
Lenders, Consumers Take on More Auto Loan Risk
September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.
Read More →
Next-Gen Hybrids in Sight
Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.
Read More →
Gem State Stores Change Hands
A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.
Read More →
Charging In Motion
Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.
Read More →
Twin Cities Stores Sell
Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.
Read More →
U.S. Auto Sales Still Below Prepandemic Levels
Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.
Read More →
The Powertrain Shift
Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.
Read More →
Achromatic Autos
The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.
Read More →
Used-Vehicle Affordability Worsens
Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.
Read More →