Published: Tue, March 20, 2018
Business | By Kate Woods

Volkswagen announces a new vehicle for the Chattanooga plant

Volkswagen announces a new vehicle for the Chattanooga plant

VW plans to reveal at the NY auto show next week a five-passenger SUV concept, presaging a model that the automaker will build at its $900 million factory near Chattanooga that's assembling the seven-seat Atlas.

The new vehicle will be variant of the seven-passenger Atlas, which is also made at the local VW plant.

The investment announcement is positive news for the US vehicle industry at a time when it is bracing for the impact of higher steel and aluminium tariffs on metal produced outside North America.

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Volkswagen is investing about $340 million on top of the $900 million already invested in the plant for the Atlas production.

"Following a collective effort by so many in our community and state to bring a major auto manufacturer to Enterprise South, one of the most meaningful days in my public service career occurred almost ten years ago when I received the call that Volkswagen had chosen Chattanooga". The Atlas went on sale past year.

Chattanooga's first vehicle was the Passat sedan, which is still manufactured at the plant, but Passat sales declined after a diesel emissions scandal that affected certain Passats and other models and cost the automaker billions in fines.

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Tennessee Governor Bill Haslam was on hand for the announcement today.

"So obviously Volkswagen's had its challenges the last three or four years".

The plant employs around 3,500 people.

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A concept version of the new model will be shown at the NY auto show later this month, and Volkswagen has released an illustration of that vehicle (see above). The original story can be found here.

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