Volkswagen to make new SUV at Chattanooga, Tennessee plant

Volkswagen to make new SUV at Chattanooga, Tennessee plant

Andrew Cummings
March 20, 2018

This new five-seater will likely begin production next year, and it's the third vehicle to be manufactured in Chattanooga, which is VW's only assembly plant in the U.S.

Antonio Pinto, the President and CEO, Volkswagen Chattanooga and Hinrich J. Woebcken, President and CEO, Volkswagen Group of America, will join Tennessee Gov. Bill Haslam, Hamilton County Mayor Jim Coppinger and Chattanooga Mayor Andy Berke. "We are not only committed to this market, we are committed to our USA manufacturing home in Chattanooga". Officials made the announcement today at the plant and unveiled a concept sketch of the new Atlas.

The German carmaker describes the vehicle as a variant of the seven-passenger Atlas, designed and engineered for the American market. Additionally, the automaker confirms that this new SUV will be built in Chattanooga, Tennessee, as part of a $340 million investment into its local manufacturing facility.

In addition to the Atlas, Volkswagen's Chattanooga plant manufactures the Passat.

The move comes after President Donald Trump earlier this month imposed steep tariffs on imported steel and aluminum, a move that drew sharp criticism from United States trading partners and prompted European Union officials to threaten to retaliate against some USA goods.

It also makes sense to build vehicles in the markets where they are sold to minimize shipping costs and avoid exposure to currency fluctuation, she said.

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

VW started producing the Atlas in Chattanooga in 2016.

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