Volkswagen Announces $340M Investment in Chattanooga To Build New SUV

Volkswagen Announces $340M Investment in Chattanooga To Build New SUV

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

Debuting as Volkswagen's latest and greatest three-row, 7-passenger crossover, the 2018 Atlas will welcome a lighter sibling in NY.

VW said it would reveal the model's name in NY.

The current Atlas is available with a 2.0-liter turbocharged four-cylinder engine for the base model that delivers 235 hp and 258 lb-ft of torque.

The plans come amid debate over USA -foreign trade relationships as President Trump threatens tariffs on imported European vehicles and continues NAFTA negotiations.

No jobs will be added to produce the additional vehicle, but it should improve job security at the factory, a spokeswoman said by email. The five-passenger Atlas variant will mark the third Volkswagen model assembled at the Chattanooga factory. The Passat was the first vehicle built at the plant.

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. In addition to the new Atlas, VW also unveiled an all-new 2018 Tiguan SUV previous year. Nissan, for example, recently started selling the Rogue Sport, a smaller and peppier version of its popular and larger Rogue crossover. 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.

Volkswagen will invest another $340 million to build SUVs at its USA factory, a sign of confidence despite rising friction on global trade, the company announced Monday.