Volkswagen will give workers a 10 percent pay increase at the assembly plant located in Chattanooga, Tennessee. The salary increase was informed by the head of the company's business in the United States.
The salary increase is a consequence of Omicron's new variant in an already tight workforce.
Volkswagen reports that in 2021 they posted sales of 375,030 vehicles in the United States. This number grew 15 percent over the previous year.
Sales were led by the Volkswagen Atlas which was produced in Chattanooga and the Volkswagen Tiguan which was a midsize SUV.
For electric vehicles, Volkswagen posted sales of 16,742 SUV ID.4 units. Volkswagen USA has plans to produce the model at its Chattanooga plant in the second half of 2022.
Scott Keogh, chief executive officer of Volkswagen's United States unit, said overall US auto sales are likely to stall at 15.5 million this year due to the shortage of the semiconductor supply crisis. On the other hand, the automotive industry is experiencing a high degree of uncertainty due to the spread of Omicron variants.
The Chattanooga factory is currently closed due to the holidays and the chip crisis. The plant will reopen on January 10, 2022. Although the plant is not running at full capacity due to a shortage of semiconductors, Volkswagen hopes to meet their vehicle production and sales targets.
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