"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 USA manufacturing operation that can produce three models, and counting", said Governor Haslam. Officials made the announcement Monday at the plant and unveiled a concept sketch of the new Atlas.
VW said it would reveal the model's name in NY.
The German carmaker describes the vehicle as a variant of the seven-passenger Atlas, designed and engineered for the American market.
The plans come amid debate over USA -foreign trade relationships as President Trump threatens tariffs on imported European vehicles and continues NAFTA negotiations.
VW's plans to locate another model at the Chattanooga plant, its only US factory, have been in the works for several years, said Kristin Dziczek, director of the industry, labor and economics at the Center for Automotive Research.
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Here is the new Volkswagen SUV. The southeastern Tennessee factory, which also assembles Passat sedans, employs about 3,200 workers. Nissan, for example, recently started selling the Rogue Sport, a smaller and peppier version of its popular and larger Rogue crossover.
The company claims it will spend $340 million to bring the Atlas five-seater to production, expanding on the $900 million already spent to expand the Chattanooga plant to build the Atlas seven-seater.
Volkswagen will begin producing a 2-row, 5-passenger variant of its all-new 2019 Atlas SUV at its Chattanooga, Tenn., assembly plant.
Nasty trade talk hasn't turned the largest German automaker off its USA growth plans: Volkswagen AG is investing in its Tennessee factory and expanding its lineup of the sport utility vehicles that Americans love.