Volkswagen of America, Inc. plans to invest $340 million to build a new sport utility vehicle at its Chattanooga, TN plant as demand surges for larger vehicles. Based off Volkswagen’s award-winning MQB platform, a concept version will be unveiled later this month at the 2018 New York International Auto Show. The new five-passenger Volkswagen SUV will be a variant of the seven-passenger Atlas and will be designed and engineered for the American market.
at Volkswagen’s Chattanooga, TN plant. (Wade Payne/AP Images for Volkswagen)
“The Atlas has built strong momentum for Volkswagen in the SUV segment, and we are excited to grow our SUV portfolio with this new, Chattanooga-assembled five-passenger SUV,” said Hinrich J. Woebcken, President and CEO, Volkswagen Group of America, Inc. “We are not only committed to this market, we are committed to our U.S. manufacturing home in Chattanooga, Tennessee.”
Volkswagen will invest approximately $340 million to bring the vehicle to market, in addition to approximately $900 million already invested to expand the plant for Atlas production. The five-passenger Atlas variant will mark the third Volkswagen model assembled at the Chattanooga factory. Volkswagen Chattanooga also manufactures the Passat, which went on sale in 2011, and the Atlas, which started sales in 2017.
“During my time as Governor, I’ve watched Volkswagen Chattanooga flourish from a single vehicle producer, starting with the Passat, into what it is today—a thriving U.S. manufacturing operation that can produce three models, and counting,” said Governor Bill Haslam. “We value Volkswagen as a committed partner, whose investments in the state have not only created new jobs, but have helped us build a skilled Tennessee workforce. I look forward to watching as VW continues to grow in Tennessee.”
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