First Drive: 2012 Volkswagen Passat

By all objective measures, and any subjective measure that you'd care to hold a Camry to, the Passat is a fine car. It offers adequate power, respectable fuel economy, generous space, a great ride, and a fair value. But in setting the price of the Passat to be competitive, Volkswagen paid a price to compete in the mainstream mid-size segment. The character, the specialness, and the allure aren't what they used to be. With the Passat, Volkswagen has traded soul for sales. The Specs
On sale: September
Price: $20,000/$25,000/$27,000 (I-5/TDI/V-6, est.)
Engines: 2.5L I-5, 170 hp, 177 lb-ft; 2.0L turbo-diesel I-4, 140 hp, 236 lb-ft; 3.6L V-6, 280 hp, 258 lb-ft
Drive: Front-wheel Then & Now Volkswagen in America THEN
In 1976, Volkswagen purchased an unfinished factory from Chrysler in Westmoreland County, Pennsylvania, to become the first foreign automaker since World War II with a plant in the United States. Ambitious plans for American expansion fell flat, however, in part because of quality problems, high pricing, and an undesirable softening of the Westmoreland-made Rabbit (and its Golf successor). The facility was operating at just 30 percent of its planned capacity when the last car rolled off the line ten years after the factory opened. The location: New Stanton, PA
The car: Rabbit/Golf
The sticker price: $4220 (1978)
The investment: $250 million
The incentives: $100 million
Annual capacity: 200,000 vehicles
Ambitious goal: 5 percent market share
Sobering reality: 3 percent peak in 1980
Employment effect: 2500 laid off at closing NOW
A return to U.S. manufacturing hedges against the volatility of currency fluctuations as Volkswagen aims to drastically ramp up its American sales. From a choice of 398 sites, Volkswagen settled in Chattanooga, Tennessee, because of the location's access to two interstates and two rail lines, along with a fat incentive package. The plant sits on redeveloped land that was formerly home to the old Volunteer Army Ammunition Plant. Just down the road, Amazon.com is developing a $139 million distribution center. The location: Chattanooga, TN
The car: Passat
The sticker price: $20,000 (2012)
The investment: $1 billion
The incentives: $557.4 million
Annual capacity: 150,000 vehicles
Ambitious goal: 800,000 brand sales
Sobering reality: 256,830 sales in 2010
Employment effect: 85,000+ job applications