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Area Development - Site Selection, Facility Planning and Workforce Development

Volkswagen of America Plans Expansion for SUV Manufacturing in Chattanooga, Tennessee

03/20/2018
Volkswagen of America will build a new five-passenger SUV at its factory in Chattanooga, Tennessee.

According to company officials, based off Volkswagen’s award-winning MQB platform, the new Volkswagen SUV will be a variant of the seven-passenger Atlas and, like its sibling, will be designed and engineered for the American market.

Volkswagen reported it 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.

“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 & 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.”

“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.”

A concept version of the five-passenger SUV will be officially unveiled at the 2018 New York International Auto Show.

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