VW to Build New SUV at Expanded Chattanooga Plant

July 15, 2014

Mary Chuff

The new seven-passenger midsize SUV is based on the CrossBlue concept vehicle and was designed especially for the North American market.

Volkswagen announced July 14 that a new midsize SUV will be built at its Chattanooga plant in Tennessee, in accordance with the company's Strategy 2018 plan calling for an expanded industrial footprint in the U.S. Volkswagen Group will invest approximately $900 million in the production of a new seven-passenger SUV based on the CrossBlue concept vehicle, designed for the North American market. Production will create 2000 additional jobs, and approximately $600 million will be invested in Tennessee, according to the release. The Chattanooga location will also receive a new, independent National Research & Development and Planning Center for project coordination in the North American market. The objective is to more expeditiously integrate customer feedback into existing and planned vehicle models, leading to approximately 200 qualified engineers working in Chattanooga. From 2014 to 2018, Volkswagen Group will invest more than $7 billion into the U.S. and Mexico, with a goal of 800,000 vehicles delivered in the U.S. by 2018. The new SUV will be integrated into existing structures at Chattanooga, and 50,000 m² (4600 ft²) of floor space will be added.