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Trade deals with Mexico may prevent Volkswagen expansion

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The new 2013 Passat offers modifications to the 2012 model. Photo by Jake Daniels/Times Free Press The new 2013 Passat offers modifications to the 2012 model. Photo by Jake Daniels/Times Free Press

CHATTANOOGA, TN (Times Free Press) -- Local Volkswagen officials say they're fighting within the giant automaker to win a second vehicle for the Chattanooga assembly plant.

But they may be sparring with one hand tied behind their backs.

A lack of free trade pacts between the United States and other nations may steer future VW production to Mexico rather than Tennessee, according to industry experts and others.

Jay Baron, chief executive of the Center for Automotive Research in Ann Arbor, Mich., said Mexico has free trade agreements with 44 countries. The U.S. has 19, he said.

Read more from our news partners at the Chattanooga Times Free Press.



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